Some U.S. stocks are better protected from their peers from the threat of more tariffs, according to BMO Capital Markets. Fresh worries tied to the effect of higher tariffs on corporate profits loomed over investors on Thursday after the White House said that President Donald Trump could announce retaliatory duties on all countries that issue similar levies on U.S. exports. Trump, after commenting himself on social media , said he would make an announcement Thursday afternoon. Added tariffs follow an order from Trump on Monday that imposed duties on all imports of steel and aluminum , regardless of the country of origin. “We have been bullish on America for quite some time and have developed many of our investment strategy opinions around this premise,” BMO Capital chief investment strategist Brian Belski wrote on Wednesday. “We continue to believe that the U.S. will be a main source of relative growth (in terms of both economic and stock market performance) in the coming years.” Tariffs brighten appeal That view is even more important in a tariff-heavy environment, Belski said. He says U.S.-facing stocks could be due for a bump in the future partly due to tariff concern lingering in the minds of investors. “Now that tariff uncertainty has reentered the equation, we believe that more domestic-focused stocks are positioned to reverse this multi-year relative performance slide since in theory they are more shielded from the tariff threat but also considering that global macro data continues to favor the U.S.,” he said. Against this backdrop, BMO found multiple domestic-oriented stocks, all of which are rated outperform at the investment bank and that get most of their revenue from inside the U.S. Those companies could be best insulated from the effect of higher tariffs. The BMO list was assembled using the following criteria: Each stock’s five-year average foreign revenue is less than 50% Full-year price/earnings-to-growth is less than S & P 500 2025 earnings growth is more than 10% Stock’s are rated outperform and BMO’s 12-month price target is above the Street consensus BMO 2025 earnings estimates are above consensus Here are three stocks BMO discovered: AbbVie made the list. Shares of the company behind the Humira treatment for arthritis and psoriasis have advanced about 11% over the past year. The drugmaker recently received approval from the U.S. Food and Drug Administration for its treatment Emblaveo, which is also developed by Pfizer. Emblaveo is used to treat complicated intra-abdominal infections. ABBV 1Y mountain AbbVie over the past year J.B. Hunt Transport Services also turned up. Shares of the trucking and logistics company have pulled back more than 23% over the past year. Hunt last month launched a solar facility in Arkansas that it says will generate enough electricity to offset the majority used by its three corporate campuses. J.B. Hunt also raised its quarterly dividend by more than 2% in late January. JBHT 1Y mountain J.B. Hunt over the past year Shares of independent power producer Vistra have soared more than 21% so far in 2025, far surpassing the S & P 500’s 3% advance. Investors view the company as a key supplier to meet rising power demand from data centers , which require enormous energy to support artificial intelligence computations. VST 1Y mountain Vistra shares over past 12 months
BMO says buy U.S. stocks whose large domestic sales are insulated from tariffs