Steel & Aluminum Import Tariff Threat: 4 ETFs Gaining & Losing In The Market Shake-Up
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 12 2025
0mins
Source: Benzinga
Impact of Tariffs on Markets: President Trump's announcement of a 50% tariff on Canadian aluminum and steel imports has caused market uncertainty, leading to stock drops and concerns over increased costs for industries reliant on these materials. While U.S. steel manufacturers support the tariffs, the aluminum sector expresses mixed feelings due to potential negative impacts on their operations.
Investment Opportunities in ETFs: The situation presents opportunities for investors to explore exchange-traded funds (ETFs) that may benefit or suffer from these tariffs, such as the VanEck Steel ETF and iShares U.S. Basic Materials ETF, while sectors like construction and food & beverage may face challenges due to rising material costs.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy DEO?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on DEO
Wall Street analysts forecast DEO stock price to fall
2 Analyst Rating
1 Buy
1 Hold
0 Sell
Moderate Buy
Current: 82.160
Low
25.32
Averages
76.16
High
127.00
Current: 82.160
Low
25.32
Averages
76.16
High
127.00
About DEO
Diageo plc is a United Kingdom-based international manufacturer and distributor of premium drinks. The Company offers beverage alcohol with a collection of brands across spirits and beer categories. Its segments include North America, Europe, Asia Pacific, Latin America and Caribbean, Africa, and Corporate and other. The SC&P segment manufactures products and includes production sites in the United Kingdom, Ireland, Italy, Guatemala and Mexico, as well as comprises the global procurement function. Its principal products include scotch whisky, whisk(e)y, vodka, tequila, gin, rum, liqueurs, beer, wine, and non-alcoholic spirits. Its collection of brands includes Johnnie Walker, J&B and Buchanan's whiskies, Smirnoff, Ciroc and Ketel One vodkas, Captain Morgan, Don Julio, Guinness, and Tanqueray, among others. It offers Ritual Zero Proof Non-Alcoholic Spirits (Ritual). It owns manufacturing production facilities across the globe, including distilleries, breweries, and packaging plants.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
UK M&A Market Booms Amid Valuation Gap
- Surge in M&A Activity: According to Citi UK CEO Tiina Lee, the UK M&A market is booming, particularly as large companies simplify their business portfolios to focus on core operations, with 28 transactions announced in 2023 indicating strong foreign investment trends.
- Rising Deal Values: Despite a 12% decline in the number of deals last year, the total value of transactions increased by approximately 12%, suggesting that strategic buyers and private equity firms are increasingly targeting high-quality assets, with average deal sizes soaring by 30%.
- Focus on Core Competencies: Lee highlighted transactions such as McCormick's deal with Unilever's food business and Diageo's sale of its Indian cricket team as examples of major companies sharpening their focus around core competencies, reflecting a strategic shift in the market.
- Weak IPO Market: In contrast to the active M&A landscape, the UK IPO market remains relatively weak, although 2025 is projected to be the strongest year for London IPO activity since 2021, with overall volumes still below previous year levels.
See More
Market Trends and Company Movements Overview
- Semiconductor Decline: Stock futures are lower this morning, led by declines in semiconductor stocks, and if the S&P 500 and Nasdaq end the session in the red, it will mark the fifth consecutive day of losses this week, indicating growing market concerns about tech stocks.
- SpaceX Mobile Service Plans: SpaceX is considering launching a Starlink mobile service for U.S. consumers and may build its own mobile network, which could significantly boost its revenue growth, especially in the competitive AI and space sectors.
- OpenAI IPO Delay: OpenAI is contemplating delaying its initial public offering until 2027 due to the volatility following SpaceX's IPO and general instability in AI stock trading, which could impact its funding plans and market expectations.
- On Semiconductor Acquires Synaptics: On Semiconductor has agreed to acquire Synaptics in an all-stock deal valued at $7 billion, and this merger is expected to accelerate its evolution toward global leadership in intelligent systems for physical AI, further solidifying its influence in the automotive chip market.
See More
Major Wall Street Rating Changes on Friday
- Diageo Upgrade: TD Cowen upgraded Diageo from hold to buy, citing valuation dislocation as an attractive entry point, with CEO-led cost cuts and reinvestment expected to restore growth and enhance commercial execution.
- James Hardie Initiation: Stephens initiated coverage of James Hardie with an overweight rating and a $31 price target, highlighting its status as a high-quality company and its position as the second-largest composite decking manufacturer following its merger with AZEK.
- Nike Downgrade: KeyBanc downgraded Nike from overweight to sector weight, indicating that the turnaround is taking longer than anticipated, with slight reductions in FY27 estimates reflecting higher-than-expected headwinds in China and EMEA.
- American Tower Upgrade: RBC upgraded American Tower from sector perform to outperform, noting superior organic revenue growth compared to peers, despite rising interest rate pressures, indicating strong market potential.
See More
Blue Chip Stocks Retreat, Presenting Opportunities for Income Investors
- Market Retreat Opportunity: While the S&P 500 has shown solid gains over the past year, many blue-chip stocks are trading over 30% below their 52-week highs, creating excellent entry points for income-focused investors, particularly in companies like Diageo, PepsiCo, and Walmart.
- Diageo's Financial Status: Diageo's net income fell 39% to $2.35 billion in fiscal year 2025, with a 32% drop in stock price since last August; however, its 4.2% dividend yield is well-supported by free cash flow, indicating potential for long-term cash generation recovery.
- PepsiCo's Dividend King Status: PepsiCo's stock is down 18% from its 52-week high, yet it has extended its dividend growth streak to 54 consecutive years, with a 4.2% yield comparable to Diageo's, showcasing its ability to achieve reasonable growth even in downturns.
- Walmart's Growth Potential: Walmart's stock has decreased 13% from its 52-week high, but it reported a 5% revenue increase and a 13% rise in net income last year, alongside 53 consecutive years of dividend increases, highlighting its strong performance in e-commerce and technology, providing investors with long-term growth opportunities.
See More
Three Consumer Giants Present Investment Opportunities Amid Price Corrections
- Diageo's Financial Health: Despite a 39% drop in net income to $2.35 billion for fiscal year 2025 and a decline in free cash flow from $4.6 billion to $2.7 billion, Diageo's 4.2% dividend yield remains well-covered by free cash flow, demonstrating the company's resilience in adversity.
- PepsiCo's Profit Structure: PepsiCo's Frito-Lay snack business accounts for approximately 60% of its operating profit, and although the stock is down 18% from its 52-week high, its 54 consecutive years of dividend growth and 4.2% yield make it attractive in the market.
- Walmart's Market Position: As the world's largest retailer, Walmart generated $713 billion in revenue last year with a 13% increase in net income and an 18% rise in free cash flow; despite a 13% drop from its 52-week high, its 53-year history of dividend growth offers stable returns for long-term investors.
- Investor Focus: While these companies face market pressures, their strong brands and stable cash flows position them as ideal choices for income-focused investors, especially in the context of recent stock price corrections.
See More
Guinness Beer Goes Viral on TikTok
- Viral TikTok Challenge: The Guinness 'Split the G' challenge has gone viral on TikTok, where drinkers attempt to take a single gulp from a freshly poured pint so that the beer and foam line perfectly aligns with the 'G' in the logo, originating from Irish pub culture and now popular worldwide, significantly boosting brand visibility.
- Significant Sales Growth: Since Gráinne Wafer took over the Guinness brand in 2019, it has achieved a double-digit compound annual growth rate within Diageo's portfolio, defying the trend of declining beer sales globally, indicating strong market performance.
- Market Share Expansion: While Ireland and Britain remain the largest markets for Guinness, it is now the best-selling draft beer in New York and Boston, showcasing its growing influence in the U.S. market and further solidifying its global brand position.
- Diverse Product Strategy: The introduction of the higher-alcohol bottled variant, Foreign Extra Stout, has made Nigeria the world's fourth-largest consumer of Guinness, while Guinness 0.0 has become the top non-alcoholic beer in the UK, demonstrating the brand's adaptability and innovative strategies across different markets.
See More
UK M&A Market Booms Amid Valuation Gap
- Surge in M&A Activity: According to Citi UK CEO Tiina Lee, the UK M&A market is booming, particularly as large companies simplify their business portfolios to focus on core operations, with 28 transactions announced in 2023 indicating strong foreign investment trends.
- Rising Deal Values: Despite a 12% decline in the number of deals last year, the total value of transactions increased by approximately 12%, suggesting that strategic buyers and private equity firms are increasingly targeting high-quality assets, with average deal sizes soaring by 30%.
- Focus on Core Competencies: Lee highlighted transactions such as McCormick's deal with Unilever's food business and Diageo's sale of its Indian cricket team as examples of major companies sharpening their focus around core competencies, reflecting a strategic shift in the market.
- Weak IPO Market: In contrast to the active M&A landscape, the UK IPO market remains relatively weak, although 2025 is projected to be the strongest year for London IPO activity since 2021, with overall volumes still below previous year levels.
See More
Market Trends and Company Movements Overview
- Semiconductor Decline: Stock futures are lower this morning, led by declines in semiconductor stocks, and if the S&P 500 and Nasdaq end the session in the red, it will mark the fifth consecutive day of losses this week, indicating growing market concerns about tech stocks.
- SpaceX Mobile Service Plans: SpaceX is considering launching a Starlink mobile service for U.S. consumers and may build its own mobile network, which could significantly boost its revenue growth, especially in the competitive AI and space sectors.
- OpenAI IPO Delay: OpenAI is contemplating delaying its initial public offering until 2027 due to the volatility following SpaceX's IPO and general instability in AI stock trading, which could impact its funding plans and market expectations.
- On Semiconductor Acquires Synaptics: On Semiconductor has agreed to acquire Synaptics in an all-stock deal valued at $7 billion, and this merger is expected to accelerate its evolution toward global leadership in intelligent systems for physical AI, further solidifying its influence in the automotive chip market.
See More
Major Wall Street Rating Changes on Friday
- Diageo Upgrade: TD Cowen upgraded Diageo from hold to buy, citing valuation dislocation as an attractive entry point, with CEO-led cost cuts and reinvestment expected to restore growth and enhance commercial execution.
- James Hardie Initiation: Stephens initiated coverage of James Hardie with an overweight rating and a $31 price target, highlighting its status as a high-quality company and its position as the second-largest composite decking manufacturer following its merger with AZEK.
- Nike Downgrade: KeyBanc downgraded Nike from overweight to sector weight, indicating that the turnaround is taking longer than anticipated, with slight reductions in FY27 estimates reflecting higher-than-expected headwinds in China and EMEA.
- American Tower Upgrade: RBC upgraded American Tower from sector perform to outperform, noting superior organic revenue growth compared to peers, despite rising interest rate pressures, indicating strong market potential.
See More
Blue Chip Stocks Retreat, Presenting Opportunities for Income Investors
- Market Retreat Opportunity: While the S&P 500 has shown solid gains over the past year, many blue-chip stocks are trading over 30% below their 52-week highs, creating excellent entry points for income-focused investors, particularly in companies like Diageo, PepsiCo, and Walmart.
- Diageo's Financial Status: Diageo's net income fell 39% to $2.35 billion in fiscal year 2025, with a 32% drop in stock price since last August; however, its 4.2% dividend yield is well-supported by free cash flow, indicating potential for long-term cash generation recovery.
- PepsiCo's Dividend King Status: PepsiCo's stock is down 18% from its 52-week high, yet it has extended its dividend growth streak to 54 consecutive years, with a 4.2% yield comparable to Diageo's, showcasing its ability to achieve reasonable growth even in downturns.
- Walmart's Growth Potential: Walmart's stock has decreased 13% from its 52-week high, but it reported a 5% revenue increase and a 13% rise in net income last year, alongside 53 consecutive years of dividend increases, highlighting its strong performance in e-commerce and technology, providing investors with long-term growth opportunities.
See More
Three Consumer Giants Present Investment Opportunities Amid Price Corrections
- Diageo's Financial Health: Despite a 39% drop in net income to $2.35 billion for fiscal year 2025 and a decline in free cash flow from $4.6 billion to $2.7 billion, Diageo's 4.2% dividend yield remains well-covered by free cash flow, demonstrating the company's resilience in adversity.
- PepsiCo's Profit Structure: PepsiCo's Frito-Lay snack business accounts for approximately 60% of its operating profit, and although the stock is down 18% from its 52-week high, its 54 consecutive years of dividend growth and 4.2% yield make it attractive in the market.
- Walmart's Market Position: As the world's largest retailer, Walmart generated $713 billion in revenue last year with a 13% increase in net income and an 18% rise in free cash flow; despite a 13% drop from its 52-week high, its 53-year history of dividend growth offers stable returns for long-term investors.
- Investor Focus: While these companies face market pressures, their strong brands and stable cash flows position them as ideal choices for income-focused investors, especially in the context of recent stock price corrections.
See More
Guinness Beer Goes Viral on TikTok
- Viral TikTok Challenge: The Guinness 'Split the G' challenge has gone viral on TikTok, where drinkers attempt to take a single gulp from a freshly poured pint so that the beer and foam line perfectly aligns with the 'G' in the logo, originating from Irish pub culture and now popular worldwide, significantly boosting brand visibility.
- Significant Sales Growth: Since Gráinne Wafer took over the Guinness brand in 2019, it has achieved a double-digit compound annual growth rate within Diageo's portfolio, defying the trend of declining beer sales globally, indicating strong market performance.
- Market Share Expansion: While Ireland and Britain remain the largest markets for Guinness, it is now the best-selling draft beer in New York and Boston, showcasing its growing influence in the U.S. market and further solidifying its global brand position.
- Diverse Product Strategy: The introduction of the higher-alcohol bottled variant, Foreign Extra Stout, has made Nigeria the world's fourth-largest consumer of Guinness, while Guinness 0.0 has become the top non-alcoholic beer in the UK, demonstrating the brand's adaptability and innovative strategies across different markets.
See More
