Tariffs have raised uncertainty in financial markets, impacting profits and leading to higher uncertainty ratings

From Morningstar: 2025-05-14 05:03:00

President Donald Trump’s tariffs have increased uncertainty in financial markets and impacted companies’ profits. Morningstar has raised Uncertainty Ratings on 74 stocks this year, with 53 stocks seeing ratings increase between April 2 and May 7. Sectors like auto, airline, and semiconductor stocks have been hit hardest.

Morningstar’s Uncertainty Ratings play a key role in determining stock star ratings. Companies with higher Uncertainty Ratings require a larger margin of safety. Tariffs have led to a surge in Uncertainty Ratings, with 17 stocks now rated Very High or Extreme. Auto, airline, and semiconductor stocks are among those affected.

Morningstar raised Uncertainty Ratings for companies like Advanced Micro Devices, American Airlines, Delta Air Lines, Southwest Airlines, United Airlines Holdings due to tariff uncertainty. Other companies impacted include Celanese, Dentsply Sirona, First Solar, Mercedes-Benz Group AG, Qorvo, Stellantis, STMicroelectronics, and Volkswagen Group.

Analysts cite tariff uncertainty as a major factor in raising Uncertainty Ratings. For example, Dentsply Sirona’s rating was raised to Very High due to macroeconomic uncertainty and potential tariff-induced headwinds. The impact of tariffs remains fluid and dynamic, affecting various industries and companies differently.

Different tariff scenarios have led to adjustments in fair value estimates and Uncertainty Ratings for companies like Mercedes-Benz Group AG and Stellantis. The uncertainty surrounding tariffs and their potential impact on various industries has led to increased caution among investors. Companies are bracing for a wide range of outcomes as the tariff situation evolves.



Read more at Morningstar: Which Stocks Had Uncertainty Ratings Raised on…