April saw ‘Liberation Day’ in which the US rolled out tariffs on every nation around the world. This caused some of the wildest swings from stock markets that we’ve ever seen. For now, uncertainty and volatility will remain high. If you have a long-term investing plan, stick with it. For investors, short-term noise shouldn’t dictate long-term decisions. This may feel like the end of the world, but it’s not. We might see more selling over the months ahead, so adopt a dollar-cost averaging strategy and not deploy all your capital at once. Here are four stocks to watch in May:
#1 Tesla
Despite weaker-than-expected results, Elon Musk is back at the helm. The CEO announced on the earnings call that he’ll start to pull back significantly from his work with the US government starting in May. This is massive news for Tesla shares after a torrid start to the year and poor Q1 results. Earnings and revenue both missed estimates, while the company also stepped away from its 2025 sales outlook amid tariff uncertainty and slumping sales.
However, Tesla addressed three big areas investors were fretting over. Tariffs are going to affect the business, more on the energy front than automotive. Frustratingly, its energy storage segment was a bright spot this quarter, with margins twice as high as automotive. Tesla’s more affordable vehicle is still on track to enter production in the first half of 2025, and Optimus and Robotaxi are still moving forward, which is massive for future growth. Finally, Musk stepping back from DOGE is a much-needed relief for Tesla investors, which could be a sign of better things to come this year.
View Tesla
#2 Macquarie Group
Macquarie is a globally diversified financial services provider; they don’t just provide mortgages and banking, basically. It makes around 40% of earnings from commodities and global markets trading activity, while its asset management business has close to $1 trillion AUD in assets.
This year, shares have fallen around 12% amid volatility across global stocks, which could be seen by many as an attractive entry point given that shares have returned an average annual return of over 15% for the last 10 years. On the 9th of May, Macquarie will report its full fiscal year results. Given its exposure to infrastructure, renewables, and volatile markets, investors will be watching closely.
View Macquarie Group
#3 Philip Morris International
They’re a global producer of tobacco and smoke-free products. They are responsible for six of the world’s top 15 international tobacco brands, including Marlboro, the world’s best-selling international cigarette. With cigarette volumes declining, the company has now shifted its focus to the production of various alternative, smoke-free products, such as e-vapes, nicotine pouches, and other electronic devices. It acquired Swedish Match, a manufacturer of ZYN nicotine pouches, in 2022.
Thanks to its strong cash flow and consistent payout, the company has long been a dividend investor favourite. Its free cash flow climbed 36% in 2024 to USD$10.7 billion, and its current dividend yield is an attractive 3.5%. The company has raised its dividend every year for 16 years, which is no small feat in an industry facing regulation and change. Just last month, the company raised its full-year earnings outlook with its smoke-free business delivering 20% revenue growth in Q1. This sparked a number of broker upgrades, with Bloomberg Analyst Ratings showing 16 buys, 4 holds and just one sell.
View Philip Morris
#4 Novo Nordisk
You’ve more than likely heard of the diabetes drug Ozempic that has been hailed as a miracle weight loss treatment.. Well, that drug is produced by Novo Nordisk, a Danish healthcare company founded over 90 years ago that is now one of Europe’s largest companies. The drugmaker has been riding high on the success of Ozempic and other weight loss drugs. But, shares have come under pressure in the last 6 months with question marks over the trajectory of the weight loss market and some disappointing results from emerging drug trials.
Shares have fallen 33% this year as Eli Lilly’s trial results have proved to be more fruitful. However, Eli Lilly has just received a number of broker downgrades, with analysts believing Novo’s new ‘CagriSema’ drug has not been priced in by the market and the current sell-off represents an opportunity. According to Bloomberg’s Analyst Recommendations, it boasts 21 buy ratings, 9 hold ratings, and 4 sell ratings, with an average price target of DKK 682, implying a potential 64.8% upside.
View Novo Nordisk
eToro AUS Capital Limited AFSL 491139. eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk. See PDS and TMD.
This communication is general information and education purposes only and should not be taken as financial product advice, a personal recommendation, or an offer of, or solicitation to buy or sell, any financial product. It has been prepared without taking your objectives, financial situation or needs into account. Any references to past performance and future indications are not, and should not be taken as, a reliable indicator of future results. eToro makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication.