The tariff market sell-off could provide investors with attractive entry points for certain stocks, according to Mizuho. Stocks seesawed on Monday as President Donald Trump’s tariffs continued to spark fear of an economic slowdown. Last week’s announcement sent the market spiraling, with the S & P 500 seeing a loss of 10% in the prior two trading days. The Nasdaq Composite also closed in bear market territory on Friday, and the Dow Jones Industrial Average saw its biggest decline since June 2020 in that session. “We expect volatile markets ahead as the pace of tariff-related news flow may not subside anytime soon,” the firm wrote in a note to clients Monday. Mizuho unveiled a list of high-quality stocks that it believes provide a “compelling” opportunity for investors. Each of the stocks have an outperform rating and are either insulated from tariffs, have fallen to valuation support levels, are dislocated from the group or have near-term bullish catalysts. Below are some of the names that appeared. First Solar made the list. Shares of the largest manufacturer of solar panels in the U.S. have underperformed the broader market in recent months, plummeting more than 42% over the past six. It’s also lagged in 2025, seeing year-to-date losses of almost 25%. “The stock has likely underperformed YTD given negative sentiment around 45X manufacturing tax credits surviving Republican administration but, even in our base case assuming 45X expires after 2026 (1-year off-ramp), we see less pain for FSLR anyway offset by tariffs, leading to better negotiating power in 2027,” analyst Maheep Mandloi wrote in the note. Mandloi, whose $252 price target reflects nearly 96% upside from Friday’s close, is among most analysts with a bullish view. LSEG data shows that the average price target on the stock implies upside of 82%. Pet retailer Chewy also made the cut. Analyst David Bellinger pointed to several growth opportunities for the company, such as an “under-penetrated” mobile app and vet-focused initiatives. “These factors combine for a still catalyst-rich name, self-funded through ample cash generation and with > $400M in remaining buybacks,” Bellinger wrote. “Concerns around higher ad spend are short-sighted in our view, particularly as CHWY leans in ahead of a rebound in pet-related spending and remains well within its historical [return on investment] guardrails.” CHWY 6M mountain CHWY, 6-month Chinese e-commerce giant Alibaba also appeared on the list. While the stock has fallen about 20% in the past week, it has risen more than 25% in the past three. “We believe BABA is a defensive play for China’s uncertain macro outlook,” analyst James Lee wrote. “We believe that only core commerce and cloud are priced into the stock, and that operations like Food Delivery, Online Video, and Payments are free call options.”
