President Trump has just announced that the US is about to impose 25% tariffs on steel imports and 10% on aluminium imports. The decision caused global markets to shudder, especially on concerns that Europe and Asia would retaliate. For the week, the S&P 500 closed down 2%, nearly twice as much as any decline in 2017.

But for Fundstrat founder and head of research Tom Lee the market is overreacting. He says: 

“We are buyers of this pullback. The equity environment is more challenging than 2017, and as noted above, is characterized by greater skepticism of Washington (deficits, tax cuts, etc), synchronized normalization by central banks and inflation increases—however, we view these as healthy transitions and supportive of earnings growth.”

He recommends tracking these 20 stocks with low trade war exposure. In order to find these stocks, Lee looked at each company’s overseas sourcing as a percentage of cost of goods sold and their exports as a percentage of sales. If the sum of the two percentages came to under 40%, he concluded that the company had a low trade war exposure.

Pinpointing top stocks

From this list, we used TipRanks to identify the 5 top stocks with a bullish Street outlook. TipRanks’ algorithms track and rank almost 5,000 Wall Street analysts. This allows us to: 1) see the overall analyst consensus on any stock and 2) extract stock insights from the Street’s best-performing analysts.

All of the stocks below boast a ‘Strong Buy’ analyst consensus rating from the Street’s top analysts. The advantage of these five low exposure stocks is that they represent compelling investing opportunities according to analysts with a proven track record of success.

So with this in mind, let’s take a closer look now:

Boeing 

One of the world’s largest aerospace companies, Fundstrat has calculated that Boeing (NYSE:BA) actually has a trade war exposure of just 35.2%.