Will Stocks with Strong Financials Weather the Storm?

It’s going to be a bumpy ride. At least for the next few weeks — maybe longer. 

With tariffs being higher than expected and uncertainty still looming in the markets, anyone stating that they know with certainty what’s going to happen either is lying or has information the rest of us don’t.

But remember: History may not repeat, but it rhymes. This isn’t the first time uncertainty has hit the markets, and it won’t be the last. It’s part of the cycle. During times like these, long-term investors should focus on stocks with strong financials and fundamentals.

Companies with strong books and financial foundations are more likely to turn out ok at the end of a rough economic patch. With that in mind, below you’ll find 3 stocks that all have two indicators of strength:

First, each of them enjoys a Zen Rating of A, indicating that they’re in the top 5% of stocks we track based on a review of 115 factors proven to drive stock growth. but also have a strong financial component grade.

Second, each of the stocks below also has a Component Grade of A for Financials. This specific Component reviews 26 “boring” factors like long-term debt to assets, free cash flow, return on assets, inventory changes, and more. Buried in this veritable haystack of financial data is the needle that can point to serious outperformance.

Let’s take a look at the stocks:

1. Lifevantage Corp. (NASDAQ: LFVN)

People still care about their health, and they’ll likely continue to do so for some time. Lifevantage specializes in supplements (among related products) and is currently benefiting from weight-loss trends. That industry will likely remain robust for some time. 

With excellent Value, Growth, and Financials component grades, Lifevantage is still looking strong despite general market fears: while the last month has not been kind to it, the stock has still grown +133.88% over the past 12 months.

2. Ralph Lauren Co (NYSE: RL)

One would think that clothing would be the last thing on anyone’s minds right now for an investment, but Ralph Lauren is a huge name that can directly reach out to consumers. 

It’s revenue and expected earnings are still strong (it’s expecting revenue growth of 6-7%, and it is in a stronger position than many of its competitors. While everyone else worries, some investors might find RL to be an opportunity. It is still up about 15% over the last year, and some consider it a growth stock.

3. Acadian Asset Management Inc. (NYSE: AAMI)

While some people’s assets may be worth less after last week, there are still certainly assets to manage, and the core of Acadian Asset Management Inc’s operations is unlikely to be affected directly by tariffs. Its recent earnings beat estimates, and while it might be affected by some economic factor, it is partially removed from the most dire circumstances.

Additionally, on top of its Zen Rating of A, it has strong component grades in Financials, Sentiment, Value, and Artifical intelligence. While some analysts may say otherwise, our system sees potential positive trends in AAMI’s future.

These aren’t the only stocks with strong financial component ratings by any measure. In fact, with WallStreetZen Premium, you can take a look at the ratings and get plenty of additional ideas, use your unlimited watchlist to help you keep track of your portfolio and favorite stocks, and more.

And if you’re looking for more of a guiding hand and an expert leading the way, then Zen Investor might be for you. Zen Investor provides you with portfolio recommendations handpicked by our very own Steve Reitmeister, who has more than 40 years of experience investing. If you want to worry less, look into it.

What to Do Next?

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