US stocks are going through a rough patch amidst concerns the Trump tariffs will lead to inflation and may even trigger an all-out trade war.
While the pressure is being seen across the board, from small to large-cap names alike, there are three “best-in-class” stocks that are particularly worth buying on the recent weakness, according to Jay Woods – the chief global strategist of Freedom Capital Markets.
Woods’ list of best stocks to buy on the dip includes Amazon, Goldman Sachs, and Exxon.
Let’s take a closer look at what each of these three has in store for investors in 2025.
Amazon.com Inc (NASDAQ: AMZN)
Woods agreed in a recent CNBC interview that Trump tariffs continue to be a concern for Amazon.
Still, the market veteran recommended “looking at what they’ve done consistently over time” and load up on the e-commerce behemoth as it’s “best in class”.
Amazon stock has declined nearly 20% since early February. Currently trading at approximately $200 per share, it remains above its 200-day moving average, which Wood highlighted as a favorable risk-reward setup on “Power Lunch.”
The strategist dubbed recent pullback in AMZN an opportunity to buy a quality stock at a deep discount, adding, “$200 is a great level, and then, if this market accelerates, anything cheaper [is a] great opportunity.”
Goldman Sachs Group Inc (NYSE: GS)
Shares of the multinational investment bank have declined approximately 15% over the past three weeks, which Jay Woods described as a buying opportunity in the interview.
Trump tariffs and what they may mean for US stocks in the near to medium term have removed focus from a well-founded expectation that “mergers and acquisitions are going to happen” in 2025.
That’s the bull thesis for Goldman Sachs shares, said Woods, adding “I don’t for a minute believe that this isn’t a good place to enter the stock over the long term.”
A healthy 2.11% dividend yield makes GS stock all the more exciting to own at current levels.
Exxon Mobil Corp (NYSE: XOM)
While Exxon hasn’t had a pronounced dip like the ones we’ve seen in Amazon and Goldman Sachs in recent weeks, Woods still dubbed the $107 level “a great entry spot” on Friday.
Freedom Capital’s chief strategist sees XOM shares hitting $120 in the coming months which signals potential upside of nearly 13% from here.
Woods likes Exxon stock also for the strength of the company’s financials. In late January, the oil and gas behemoth reported better-than-expected quarterly results on the back of increased output from Permian and Guyana.
Note that Exxon shares currently pay a rather lucrative dividend yield of about 3.68% as well.
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