Market at Record Highs, Tariff Jitters Linger, and 5 Stocks You Need to Watch

Markets wrapped up the week on a cautiously optimistic note, as the S&P 500 and Nasdaq bounced back around their closing records.

The tech-heavy rally, driven by Nvidia’s $4 trillion moment earlier this week, has overshadowed a flurry of geopolitical risk, including President Trump’s latest salvo: 35% tariffs on Canadian imports starting August 1.

While investors largely shrugged off previous tariff headlines, this latest escalation targeting a key North American trading partner has introduced new uncertainty into the supply chain outlook.

Meanwhile, economic data remains mixed, with traders watching the Treasury statement for clues on government spending trends and prospects for a rate cut.

In this high-stakes environment, stock selection remains key.

Whether it's unlocking synergy value, repositioning for growth, or tapping into defensive income streams, here are five stocks that stood out to us as the week closes:

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Nu Holdings | NU

Price: $12.84

Nu Holdings continues to deliver impressive growth, even after Berkshire Hathaway sold its stake.

The Brazilian fintech has solidified its leadership in Latin America, serving over 105 million customers in Brazil, roughly 59% of the country's adult population.

But the real story now is international expansion.

In Mexico, Nu has recently secured a full banking license, enabling it to offer a wider range of products beyond credit cards and basic savings.

Meanwhile, its NuPay, Nu Travel, and Nu Marketplace platforms show potential to diversify revenue beyond financial services.

Valuation remains a concern, as the stock is trading at nearly 30 times earnings and 7 times sales.

However, its growth trajectory and expanding market share could justify the premium.

With consumer credit demand rising in Latin America, NU may remain a high-beta way to play the region’s fintech boom.

Hewlett-Packard Enterprise | HPE

Price: $20.68

HPE completed its acquisition of Juniper Networks and raised synergy guidance, now expecting $600 million in savings over three years, up from the previously announced $450 million.

Evercore ISI increased its price target to $25, and management reiterated that the deal is expected to be EPS-accretive in the first year.

Former Juniper CEO Rami Rahim will lead HPE Networking, a newly formed unit expected to double HPE’s networking revenue to nearly $10 billion.

The company also locked in $56 million in new government contracts and announced an AI data center partnership in Japan.

While HPE has lagged behind some of its peers in AI exposure, the Juniper integration and international contracts suggest a more competitive profile going forward.

Shares trade at a reasonable 21x earnings with a 2.4% yield, making it a potential sleeper pick in AI infrastructure.

Kraft Heinz Co. | KHC

Price: $27.13

Kraft Heinz announced the sale of its Italian baby food division, including the Plasmon, Nipiol, and Aproten brands, to NewPrinces for €120 million.

The divestiture aligns with its strategy to focus on core brands and higher-growth segments.

Despite weak share performance this year, KHC’s fundamentals remain compelling: a 12x forward P/E, strong free cash flow, and a robust 6.0% dividend yield.

The sale, though modest in size, frees up capital and sharpens management’s focus on global staples and North American strength.

For income-focused investors seeking stability and potential for turnaround, KHC remains a viable long-term investment with upside as management continues to streamline the portfolio.

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PG&E | PCG

Price: $13.54

PG&E has quietly become one of the more attractive value plays in the utilities sector.

Trading at just 9x forward earnings, the California utility also boasts a PEG ratio of 1 and strong operating cash flow.

Yes, the stock is down more than 30% YTD, but it has started to attract attention from value investors seeking recession-resistant cash flows.

One analyst recently raised 2025 EPS estimates, and PG&E continues to deliver earnings surprises above expectations.

It’s not a high-growth story, but in a choppy environment with rising inflation risks, PCG’s low valuation, regulated revenue, and improving cost structure could offer both stability and modest upside.

Amcor | AMCR

Price: $9.83

Jefferies just initiated coverage on Amcor with a Buy rating and $12 price target, calling the global packaging company “undervalued” and “strategically positioned.”

The optimism is tied to Amcor’s acquisition of Berry Global, a deal expected to generate meaningful synergies and boost earnings growth.

Amcor’s packaging solutions for food, healthcare, and consumer goods are a defensive play in an uncertain market.

The company operates in over 40 countries and is targeting margin improvement through cost control and the divestiture of non-core assets.

With a 5.2% dividend yield and strong operational leverage, AMCR could appeal to income investors looking for exposure to essential services and steady cash flows.

The valuation remains attractive in relation to the company's long-term earnings growth potential.

As markets close out the week, investors are caught between record highs and rising trade risks.

Trump’s tariff threat against Canada adds another layer of uncertainty heading into August, while the Fed’s rate path remains a wildcard.

However, with AI optimism still fueling the tech sector and defensive names gaining traction, stock selection will become increasingly important.

Growth names like NU and HPE offer upside in innovation, while KHC and PCG present deep value with income.

And AMCR delivers on both, with yield and steady earnings potential.

This is a market where finding the right names, not just the right sectors, can make all the difference.