Stocks with less inherent exposure to an economic slowdown could be a good addition to investors’ portfolios as global trade worries increase, according to Jefferies. The market has taken investors on a roller-coaster ride this week, with Thursday’s session wiping out a sizable chunk of Wednesday’s historic rally . The volatility is not expected to subside anytime soon either, as a timeline on the progress of U.S. trade negotiations remains uncertain, as does the economic effect that a trade war could bring about. “The current macro backdrop calls for a different tack than the classic cyclicals vs. defensives or straightforward factor-based approaches. With tariffs yet to be decided, significant estimate revisions may still be on the come, calling current multiples into question,” the bank wrote. “Equally, given recent degrossing and better-than-feared macro data points, negotiation updates or policy u-turns can change sentiment quickly. As a result, we think investors are well-advised to allocate toward … companies with less direct exposure to tariffs & downward spiraling growth.” Below are some stocks Jefferies recommends clients seek shelter in as this market volatility persists: One name that made Jefferies’ list is Netflix . “NFLX remains primarily a subscription business, which should not be affected by tariffs,” the bank wrote. “In the event of a consumer slowdown, we believe NFLX will be a relative outperformer as it represents a small portion of consumer budgets.” Jefferies’ price target of $1,200 implies shares of Netflix could rise 30% from Thursday’s close. Shares of the streaming platform have climbed 4% this year. McDonald’s , up 6% in 2025, was another name in the basket. The investment firm’s price target of $349 is approximately 14% above where shares closed Thursday. “MCD is a top defensive pick with strong execution in low price point/bundle value offerings, among other SSS drivers, leading to U.S. share wins through 2025+ in an uncertain environment. Tariff exposure is very limited, we see opportunity for modest margin expansion and accelerating unit growth that could drive upside in the stock,” Jefferies wrote. Jefferies also highlighted CME Group as a potential winner in financials. CME, which operates options exchanges, has popped 12% this year. “CME is a volatility tool for assets impacted by tariffs, such as commodities, metals, energy, etc. In a high-tariff world, CME can benefit as companies will have increased demand for hedging and financial traders will look to trade opportunistically when price volatility is heightened,” Jefferies said. The bank’s $288 price target implies shares could gain 11% from here. Other names Jefferies selected include Quest Diagnostics and Wheaton Precious Metals . Get Your Ticket to Pro LIVE Join us at the New York Stock Exchange! Uncertain markets? Gain an edge with CNBC Pro LIVE , an exclusive, inaugural event at the historic New York Stock Exchange. In today’s dynamic financial landscape, access to expert insights is paramount. As a CNBC Pro subscriber, we invite you to join us for our first exclusive, in-person CNBC Pro LIVE event at the iconic NYSE on Thursday, June 12. Join interactive Pro clinics led by our Pros Carter Worth, Dan Niles and Dan Ives, with a special edition of Pro Talks with Tom Lee. You’ll also get the opportunity to network with CNBC experts, talent and other Pro subscribers during an exciting cocktail hour on the legendary trading floor. Tickets are limited!
