News of President-elect Donald Trump’s plans to raise tariffs on imports from China, Canada, and Mexico has sent ripples through global markets. While Asian indices like Hong Kong’s Hang Seng managed to hold steady, U.S. investors are bracing for potential headwinds. Historically, tariff battles have negatively impacted U.S. manufacturing, as increased costs weigh on key industries like steel and aluminum.
Against this backdrop, small and mid-cap stocks are emerging as a bright spot in the market, offering attractive valuations and steady growth. The Russell 2000, a benchmark for U.S. small-cap stocks, is up nearly 22% year-to-date, just shy of the S&P 500’s 25% returns. With a stronger dollar, rising prices, and potential interest rate hikes in play, these three stocks stand out as compelling opportunities in sectors positioned to navigate the challenges ahead.
EQT Corporation (NYSE: EQT)
“A Leader in Natural Gas Production with Strong Tailwinds”
EQT Corporation is a natural gas producer well-positioned to benefit from sustained global demand for energy. The company operates primarily in the Appalachian Basin, leveraging its scale and operational efficiency to deliver cost-effective production.
Natural gas is expected to remain a critical energy source, especially as geopolitical tensions and tariffs create uncertainty in energy markets. EQT has demonstrated resilience in managing costs and capitalizing on its strong reserves, making it a top pick for investors looking to gain exposure to the energy sector. With tariffs potentially impacting global energy supplies, EQT offers both stability and growth potential.
Nutrien Ltd. (NYSE: NTR)
“At the Heart of Global Food Security”
Nutrien, a leader in agricultural nutrients and solutions, is uniquely positioned to address global food challenges. As tariffs drive up costs across supply chains, Nutrien’s comprehensive product offerings—from fertilizers to advanced farming solutions—are more essential than ever.
The company’s ability to weather fluctuating input costs while maintaining consistent performance highlights its resilience. With a growing global population and increased focus on food security, Nutrien is poised to thrive. Its role in supporting farmers with critical resources makes it a standout in the agriculture sector, particularly as tariff policies reshape global trade dynamics.
Las Vegas Sands Corp. (NYSE: LVS)
“A Play on Tourism and Hospitality Growth in Asia”
Las Vegas Sands operates world-class casino and resort properties, including Singapore’s iconic Marina Bay Sands and several key locations in Macau. As tariffs put pressure on traditional U.S. industries, markets in Asia offer promising growth opportunities, particularly in tourism and hospitality.
The company’s strong balance sheet and strategic focus on high-demand markets like Singapore, Japan, and Macau position it to capitalize on a post-pandemic rebound in travel. For investors seeking international exposure and diversification, Las Vegas Sands presents a compelling opportunity to tap into Asia’s expanding middle class and increased discretionary spending.
As the U.S. navigates another tariff-driven economic shift, small and mid-cap stocks in targeted sectors like energy, agriculture, and hospitality are proving their resilience. These three stocks offer unique ways to capitalize on current trends while maintaining a focus on long-term growth. For investors looking to stay ahead of the curve, they’re worth a closer look.
