With President Trump’s new round of tariffs targeting Canada, Mexico, and China, investors are closely watching how businesses in the affected regions will adapt. Initially set to take effect on February 4, the proposed 25% tariffs on Canadian and Mexican goods have been paused for 30 days following negotiations. In exchange, both countries have committed to deploying 10,000 troops each to their U.S. borders to help curb illegal immigration and drug trafficking. Meanwhile, the 10% tariff on Chinese imports remains in place.
While this temporary reprieve has eased some market concerns, industries tied to cross-border trade remain in focus. Investors are looking for companies with the resilience to navigate these changes and emerge stronger in the months ahead. Three stocks stand out as potential beneficiaries: Canadian National Railway (NYSE: CNI), CEMEX S.A.B. de C.V. (NYSE: CX), and Tesla Inc. (NASDAQ: TSLA).
Canada’s Transportation Activity Calls on National Railway Stock
With Canadian goods subject to ongoing tariff uncertainty, a strong and efficient logistics network is essential to manage supply chain disruptions. Canadian National Railway (NYSE: CNI), one of North America’s largest transportation companies, is well-positioned to capitalize on these challenges.
With this theme in mind, it makes sense to see shares of Canadian National Railway start to bottom as of late 2024, a support level around $98 to $100 a share that hasn’t been broken since. This would also make the stock trade at only 74% of its 52-week high, the foundational factor for this seeming value play in Canada’s new tariff reality.
But here’s why investors should trust this belief. Wall Street analysts now forecast up to $1.53 in earnings per share (EPS) for the same quarter 12 months from now, calling for a net growth rate of 18% from today’s $1.30 EPS. If tariffs were bad for Canada’s logistics industry, then analysts would have shifted this forecast much lower.
Nor would those at the Royal Bank of Canada have reiterated their Outperform rating on the stock while also placing a valuation of up to $171 a share for Canadian National Railway stock. This view now calls for up to 73% upside from today’s low price, another confirmation for investors to take a look into this name today.
Construction Rebounds Can Help Cemex Stock
Mexico’s cement and construction materials exports to the United States aren’t likely to stop because of tariffs. If anything, there will be more demand in the coming months. Considering that the mortgage market index now hovers at a 1996 low level, a rebound in the American housing market could suddenly call for more construction.
That is where CEMEX S.A.B. de C.V., known as Cemex, comes into play, a stock that has also bottomed since late 2024 and a name that still trades at a low 60% of its 52-week high to make it another attractive potential Buy in today’s market. This is also why Wall Street analysts have kept a consensus price target of $7.65 per share on Cemex stock.
This view would call for a net upside of 26.6% from where it trades today. Recognizing this upside potential as a solid scenario, even bearish traders decided to step off the gas a little with their short positions, as seen by the 7.8% decline in the company’s short interest for the past month alone.
More than that, the market's willingness to pay a premium for the stock compared to other peers in the cement industry is a clear sign. By trading at a price-to-earnings (P/E) ratio of up to 19.7x today, Cemex is now above the industry's average of 11.4x.
Some investors might call this expensive, while others will know that markets always pay premiums for stocks they know will outperform in the coming months.
Tesla’s Technological Advantage Will Prevail
The underlying assembly process is the difference between Tesla and other car makers like Ford Motor (NYSE: F). While Tesla’s is mostly automated, Ford’s unionized workforce has stopped the company from implementing technology to help its assembly process and margins as a result.
Without unions and counting on more technology in each of its assembly steps, Tesla stock is not only able to keep its prices lower than competitors but also set up to take over some of the market share that might be abandoned by the inability of these other brands to compete.
This is why, at 80% of its 52-week high, Tesla stock is a potential bargain to watch out for in this new tariff environment. That’s also one of the reasons analysts at Mizuho felt comfortable reiterating their Outperform rating on Tesla stock, and this time leaving a valuation of up to $515 a share on it.
To prove these analysts right, Tesla stock would have to rally by as much as 34.2% from where it trades today, not to mention make a new 52-week high as well to help this thesis live out.
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