Amidst the market turbulence caused by President Trump’s tariffs, Mizuho is suggesting potential opportunities for investors to capitalize on dips in certain stocks. This week kicked off with volatile trading as fears of an economic slowdown intensified. Notably, the S&P 500 suffered a 10% drop over the last two trading days, while the Nasdaq Composite ended Friday in bear market territory, and the Dow Jones Industrial Average experienced its largest drop since June 2020. “We anticipate continued market volatility as tariff-related news remains a constant,” Mizuho noted in a client update on Monday.
The firm put forward a selection of high-quality stocks it deems particularly promising right now. These stocks, which Mizuho believes will outperform, are either shielded from tariffs, trading at support levels, separated from their group trends, or possess short-term bullish catalysts. Let’s take a look at some of their recommendations.
One standout is First Solar. The largest solar panel manufacturer in the U.S. has seen its shares dip more than 42% in the past six months, trailing the broader market significantly. So far in 2025, losses are about 25%. Analyst Maheep Mandloi highlighted the challenges the stock faces, including negative sentiment regarding the survival of 45X manufacturing tax credits under a Republican administration. However, Mandloi sees potential, suggesting that if 45X expires after 2026, the company will be less impacted, with tariffs actually enhancing their negotiating strength by 2027. He set a bullish price target of $252, which represents nearly a 96% increase from recent figures, aligning with the general optimism among analysts. LSEG data corroborates this positive outlook, with an average price target implying an 82% upside.
Chewy, the pet supplies retailer, is another stock Mizuho is watching closely. Analyst David Bellinger identified growth prospects in its mobile app and veterinary focus, describing Chewy as “catalyst-rich” and financially robust thanks to significant cash generation and over $400 million earmarked for stock buybacks. He downplayed concerns over higher advertising expenses, seeing them as shortsighted, particularly as Chewy positions itself for a resurgence in pet-related spending while maintaining its historical return on investment standards.
Chinese e-commerce powerhouse Alibaba was also highlighted. Despite a 20% drop in the past week, Alibaba has seen a comeback of over 25% in the last three weeks. Analyst James Lee characterized Alibaba as a defensive investment amid China’s uncertain macroeconomic conditions. He believes only its core commerce and cloud sectors are currently factored into the stock price, describing other segments like food delivery, online video, and payments as enticing free options for investors.
