Market Turbulence: Finding Opportunities in Uncertain Times

If you haven’t noticed yet, it’s been a rough period for the stock market over the past week or so. After President Donald Trump announced much harsher tariff rates than many experts were expecting, the S&P 500 fell well into correction territory, and the Nasdaq even finished the week in a bear market, down by more than 20% from its recent highs. Various businesses face potential downturns due to these tariffs, particularly retailers who primarily sell imported products. Moreover, if the tariffs lead to inflation or a recession, banks could see a rise in default rates, further complicating the financial landscape.

So where should investors consider placing their money, particularly if they have $1,000 to invest right now? Our analyst team has revealed what they believe are the ten best stocks to buy in this turbulent market. However, rather than the usual list, let’s explore three resilient businesses whose stocks have been beaten down but which should experience minimal impact from tariffs.

An Incredible Business with Strong Fundamentals

One noteworthy stock is specialty insurance company Markel (NYSE: MKL). The stock is down by 16% since reaching a fresh all-time high less than two months ago. While the decline is not unwarranted, as it has a large stock portfolio with many positions taking significant hits right now, its core insurance business should remain robust. Markel offers a variety of essential insurance products, and in the most recent quarter, the company’s operating income grew by 27%, with net investment income increasing by 25%.

The management team is currently reviewing the business to optimize its insurance arm and capital allocation. They estimate the company’s intrinsic value at $2,610 per share, which indicates a significant undervaluation as it currently trades for about 33% less. Further, Markel has announced a rather aggressive $2 billion buyback authorization to leverage the current valuation gap.

Steady Cash Flow and Minimal Tariff Impact

Another strong contender is EPR Properties (NYSE: EPR), a real estate investment trust (REIT) focusing on experiential real estate. EPR leases properties to tenants primarily engaged in selling experiences rather than physical products, including movie theaters, ski resorts, and waterparks. While the tariffs may impact some of EPR’s tenants, they are generally on long-term leases, leading to stable cash flow for the company.

EPR currently boasts a 7.6% yield, paid out in monthly installments, and its shares trade for roughly eight times 2025 estimates for funds from operations (FFO), a key metric in real estate. Additionally, the current market turbulence has caused interest rates to fall, potentially enabling EPR to access growth capital at more favorable rates in the future.

A Commercial Real Estate Leader

Lastly, we have Walker & Dunlop (NYSE: WD), a company that has faced a downturn, currently trading 35% below its 52-week high. The sluggish real estate market, combined with current economic uncertainty, has impacted transaction volumes. However, Walker & Dunlop’s extensive $135 billion mortgage-servicing portfolio offers predictable revenue even during economic downturns. The company’s proven track record of expanding market share and venturing into new verticals is notable.

Falling interest rates may serve as a catalyst to revive the multifamily market—Walker & Dunlop’s key area—and offer a significant opportunity to refinance existing loans. Furthermore, a substantial $526 billion in multifamily loans is set to mature between 2025 and 2027, representing a growth opportunity. With a 3.4% dividend yield and a historically low valuation of just 17.5 times forward earnings, this company presents considerable upside potential.

Investment Strategy and Final Thoughts

In summary, regardless of the market’s volatility, acumen in identifying resilient businesses like Markel, EPR Properties, and Walker & Dunlop can prove valuable for long-term investors. Holding shares in these companies could provide not only potential growth but also stability in an uncertain environment. As an investor, it’s essential to keep the long term in mind; while these are solid companies, stock prices can be volatile over short periods. Personally, I hold shares in all three companies and plan to acquire additional shares during market dips. This strategy ensures that even amid market fluctuations, investors can capitalize on sound businesses with strong fundamentals.