Trump’s raft of tariffs, announced in early April, threw the world and stock markets into chaos.
Although the US President has paused the implementation of reciprocal tariffs for 90 days, around 180 countries or so will still be subject to a baseline tariff rate of 10%.
These tariffs will raise the cost of doing business and result in price hikes for goods and services, thereby dampening consumer demand.
Despite these headwinds, some companies can withstand these tariffs as they have a strong brand and can raise their prices without fear of losing sales volume.
Here are five growth stocks that look well-positioned to withstand these tariffs.
Colgate-Palmolive (NYSE: CL)
Colgate-Palmolive is a consumer goods company that manufactures and sells oral care, body care and cleaning products.
The company’s brands and products include the famous Colgate toothpaste, Palmolive soap, and Softlan fabric softener.
Colgate-Palmolive reported a mixed set of earnings for the first quarter of 2025 (1Q 2025).
Revenue dipped by 3% year on year to US$4.9 billion, but operating profit rose 2.8% year on year to US$1.1 billion.
Net profit stood at US$690 million, up 1% year on year.
The consumer goods company also generated a positive free cash flow of US$476 million for the quarter, though this was down 14.2% from the previous year’s US$555 million.
The company also raised its quarterly dividend from US$0.50 to US$0.52, making this the 62nd consecutive year that dividends were increased.
Colgate-Palmolive is well-positioned to resist the full effects of the tariffs as they sell essential products that consumers will continue buying.
This attribute enables the company to raise prices to offset the effects of Trump’s tariffs without seeing a correspondingly large drop in sales volume.
Procter & Gamble (NYSE: PG)
Procter & Gamble, or P&G, is also a consumer goods behemoth which sells a variety of hair care, oral care, and body care products.
Some of its famous brands and products include Pantene shampoo, Olay skin care, Gillette shavers, and Oral-B toothpaste and toothbrushes.
Like Colgate-Palmolive, P&G is also in a strong position and can raise prices without fear of losing significant business.
For the first nine months of fiscal 2025 (9M FY2025) ending 31 March 2025, P&G saw revenue slip 0.2% year on year to US$63.4 billion.
Operating profit (net of impairment charges) rose slightly by 0.6% year on year to US$16.1 billion.
Net profit (net of exceptional items), however, fell by 5.5% year on year to US$12.4 billion.
Free cash flow for 9M FY2025 also tumbled 13% year on year to US$10 billion.
Despite the lower profits, P&G upped its quarterly dividend to US$1.0568 per share, making this the 69th consecutive year that the company has increased its dividends.
Looking ahead, P&G expects around 2% organic sales growth for FY2025 and should enjoy a 2% to 4% year-on-year increase in core earnings per share (EPS).
Kimberly-Clark (NYSE: KMB)
Kimberly-Clark is a consumer goods company that sells a wide variety of adult care, baby care, family care, and feminine care products.
Some of its famous brands and products include Huggies diapers, Kleenex tissues and napkins, and Kotex sanitary pads.
Kimberly-Clark is in the midst of a company-wide transformation and reported a slightly downbeat set of earnings for 1Q 2025.
Net sales dipped 6% year on year to US$4.8 billion while operating profit fell nearly 10% year on year to US$769 million.
Net profit tumbled 12.4% year on year to US$567 million, and the company generated a positive free cash flow of US$123 million.
Despite the weaker results, the company declared a quarterly dividend of US$1.26 per share, 3.3% higher than a year ago, representing its 53rd consecutive year of dividend increase.
Earlier this month, Kimberly-Clark announced plans to invest over US$2 billion over the next five years in its North American business, marking the largest US expansion plan in three decades.
This investment should create more than 900 highly-skilled jobs and cater to rising demand for the company’s products.
Crowdstrike (NASDAQ: CRWD)
Crowdstrike is a cybersecurity company operating a cloud platform to help organisations protect their cloud workloads, identity, and data.
The company’s software is deeply integrated with its clients’ cloud networks, resulting in high switching costs for customers should they wish to change vendors.
Such an arrangement helps Crowdstrike to withstand higher costs as it can pass these through to its customers.
The company demonstrated healthy growth for its fiscal 2025 (FY2025) ending 31 January 2025.
Revenue climbed 29.4% year on year to US$3.95 billion while gross profit improved by 28.8% year on year to US$2.96 billion.
The business also generated higher free cash flow of US$1.07 billion, up 13.6% year on year.
Ending annual recurring revenue grew 23% year on year to US$4.24 billion.
Stryker (NYSE: SYK)
Stryker is a medical technology company offering innovative products in medical surgery (MedSurg), Neurotechnology, and Orthopaedics.
Healthcare firms such as Stryker are resilient against higher costs as they provide an essential service and have the leeway to raise prices without adversely affecting demand.
For 1Q 2025, Stryker saw sales rise 11.9% year on year to US$5.9 billion.
Operating profit, however, declined by 14% year on year to US$837 million because of a surge in selling expenses.
Net profit fell by 17% year on year to US$654 million.
Stryker generated a positive free cash flow of US$127 million for the quarter.
A quarterly dividend of US$0.84 was also paid recently, higher than the US$0.80 paid out in the prior year.
Because of strong demand for its products, Stryker raised its full year 2025 organic sales growth guidance range to 8.5% to 9.5%.
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Disclosure: Royston Yang does not own shares in any of the companies mentioned.
