Most stocks have endured losses throughout the first quarter, with the primary culprit being uncertainty surrounding the broad range of tariffs introduced by President Donald Trump.
This sell-off has impacted major indices such as the S&P 500 and Nasdaq, both of which are on the edge of bear territory.
However, a select few stocks have defied the tariff-driven downturn, standing out thanks in part to their strong underlying fundamentals.
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Exxon Mobil (NYSE: XOM)
Exxon Mobil (NYSE: XOM) has rallied 10.93% year-to-date, with much of its gains coinciding with the market’s tariff-induced downturn. Over the past month alone, the stock has surged 10.47%, trading at $119.04 as of the last session.
This resilience is tied to XOM’s history of serving as a risk-off equity, providing stability during downturns while rewarding investors with an attractive dividend yield of 3.3%.
At the same time, Exxon is driven by other key fundamentals, such as Trump’s focus on boosting domestic energy production and potentially easing regulations.
Exxon’s December 2024 update projects doubled earnings to $20 billion above 2024 levels by 2027 and a $30 billion free cash flow boost by 2030, assuming Brent crude at $60 per barrel.
Despite full-year 2024 earnings dropping to $33.46 billion from $38.57 billion, Q4 oil and gas earnings rose to $6.28 billion from $4.15 billion, driven by production reaching 4.6 million daily barrels.
Berkshire Hathaway (NYSE: BRK.B)
Berkshire Hathaway (NYSE: BRK.B), under the stewardship of investment magnet Warren Buffett, has also defied the tariff sell-off, gaining 18.15% year-to-date and 4.49% over the past month, with its stock price hitting $532.99
The conglomerate’s massive cash reserves reached a record $334 billion by the end of 2024, giving investors an impression of stability.
These reserves, accumulated mainly through strategic sales of stocks like Apple and Bank of America, shield Berkshire from the immediate pressures of tariff-driven inflation fears and economic uncertainty, making it a safe haven in times of market turmoil.
Additionally, the investment giant’s diversified portfolio, which spans insurance, railroads, manufacturing, energy, and retail, further mitigates tariff risks.
It remains to be seen if these stocks will sustain their momentum as Trump rolls out more tariffs today, April 2. However, they are well-positioned to capitalize on a market recovery.
Featured image via Shutterstock
