Buy Radar: 4 Resilient Stocks Navigating the Trade Storm

Australian stocks have pulled back as markets reacted to U.S. President Donald Trump’s tariff announcement on Canada, Mexico, and China. With global uncertainty rising, we’re seeing broad-based declines as market participants weigh the potential fallout. Wall Street had a challenging week, with selling pressure intensifying as trade tensions escalated. Given Australia’s reliance on exports, sectors tied to global supply chains, such as mining, manufacturing, and consumer goods, are feeling the strain. Resource stocks, in particular, could take a hit if China retaliates, which would dampen demand for Australian exports. It’s not just stocks feeling the pressure. Market volatility is spiking, with Wall Street’s VIX index surging, and bond yields sliding as investors seek safety. While there is speculation that tariffs could boost U.S. manufacturing, we see the risk of higher costs, supply chain disruptions, and potential retaliation outweighing any benefits. Despite the broader market uncertainty, some stocks are holding up remarkably well, even thriving in this environment. Whether benefiting from defensive positioning, strong earnings, or unique industry tailwinds, a handful of companies are bucking the trend. Here, we take a look at four stocks that have been performing well despite the market downturn. Catalyst Metals Limited (ASX: CYL) – Up +60% YTD Catalyst Metals Limited (ASX: CYL) is looking like a great investment right now, especially considering the global uncertainty surrounding U.S. tariffs. As a gold producer, Catalyst stands to benefit from rising gold prices, which are often a safe haven during times of market instability. For investors looking for a more stable investment in these uncertain times, gold is a solid choice, and Catalyst offers strong exposure to this asset. A Robust Portfolio in Key Australian Gold Belts The company’s portfolio is impressive, with operations in three key Australian gold belts. The flagship asset is the Plutonic Gold Mine, located in Western Australia’s Eastern Gold Fields Province. This mine spans 40 km along the Plutonic Gold Belt and holds high-grade, underexplored resources, which means there’s plenty of growth potential. Furthermore, Catalyst operates the Henty Gold Mine in Tasmania, known for its high-grade resources, and is exploring the Four Eagles Gold Project, located in the Whitelaw Gold Corridor, which is close to the Bendigo goldfields. This adds even more upside, as Bendigo is a well-known, gold-rich region. Impressive Financial Results Driven by Strong Gold Prices When we look at Catalyst’s recent financial performance, it’s clear that the company is capitalizing on the strong gold market. For the six months ending 31 December 2024, Catalyst reported a massive 783% increase in net profit after tax, reaching $46 million, compared to the prior half-year. This incredible growth was driven by strong operating results from both the Plutonic and Henty mines, along with a 31% rise in the average gold price. Gold sales for the period increased by 28% to 58,435 oz, compared to 45,550 oz in the first half of FY24. With a realized average gold price of $3,830/oz (up from $2,906/oz in FY24 H1), Catalyst saw total sales revenue soar 67%, reaching $224 million, compared to $134 million in the prior half-year. These numbers really highlight how well Catalyst has been able to leverage higher gold prices, driving impressive growth in both sales and revenue. Strong Financial Health and Debt-Free Position The company’s financial health is also noteworthy. Catalyst used its operating cash flow from the Plutonic and Henty mines to strengthen its balance sheet. By December 2024, the company was debt-free and had $84 million in cash and bullion, compared to $38 million in cash as of June 2024. This strong financial position means Catalyst is in a solid spot to weather any economic turbulence, including changes in tariffs, while still being able to fund future growth. Strategic Approach to Growth and Exploration What stands out about Catalyst’s approach is how it balances risk while pursuing new opportunities. The company has reinvested excess cash flow into the development and exploration of the Plutonic Gold Belt, which should provide additional upside without sacrificing current stability. This strategy puts Catalyst in a great position to capitalize on any new discoveries or price increases in the future. In the current climate, where gold is seen as a safe haven, Catalyst’s combination of strong operational results, solid financial standing, and exploration potential makes it an attractive investment. If you’re looking for exposure to a well-positioned gold company with both operational strength and growth opportunities, Catalyst Metals is definitely one to consider. Perseus Mining Limited (ASX: PRU) – Up +15% YTD Investing in Perseus Mining Limited (ASX: PRU) presents a compelling opportunity, particularly amid the ongoing uncertainty surrounding U.S. tariffs. While geopolitical factors like trade tensions can create volatility, gold has consistently proven to be a safe-haven asset during such periods. As a prominent player in the gold mining industry, Perseus stands to benefit from the current economic climate. The company’s operational efficiency, strong production performance, and strategic positioning in Africa make it well-placed to capitalize on rising gold prices, even as global trade dynamics remain unpredictable. Solid Operational Performance Perseus has been delivering consistent results, hitting its production targets for the first half of FY24. They produced 253,709 ounces of gold at a competitive all-in sustaining cost (AISC) of US$1,162 per ounce. This is a solid performance, especially considering the expected inflationary pressures in the market. Breaking down the production: Yaouré produced 123,158 ounces of gold at an AISC of US$1,124 per ounce. Sissingué produced 33,917 ounces of gold at an AISC of US$1,701 per ounce. Edikan produced 96,634 ounces of gold at an AISC of US$1,022 per ounce. Even with higher costs, the company has managed to maintain strong output, which speaks volumes about their operational efficiency. Smart Hedging Strategy One thing that really stands out with Perseus is its solid hedging strategy. This has allowed the company to benefit from higher gold prices while protecting itself against the volatility that often comes with shifts in trade policies and tariffs. Over the six-month period to December 31, 2024, the average gold sales price increased to US$2,350 per ounce, which was about 20% higher than the same period in 2023. Their hedging strategy has allowed Perseus to keep margins strong, even as costs increased. Even with the global uncertainty caused by tariffs, we believe gold will continue to do well. Gold is typically seen as a safe bet in uncertain times, and with Perseus seeing higher gold prices than last year, around 20% higher, we’re optimistic about their ability to capitalize on this trend. The higher gold prices, coupled with their solid operational performance, should continue to boost revenues for Perseus. In fact, they sold 245,518 ounces of gold during the period, which was slightly less than last year, but the higher price per ounce more than made up for it. Diverse African Operations Perseus operates three gold mines across Africa: Edikan in Ghana, Sissingué and Yaouré in Côte d’Ivoire, and the Nyanzaga Gold Project in Tanzania. This geographical diversity is a big plus, helping reduce risks if one region faces challenges. Each mine has been delivering strong results, and we see plenty of potential for more growth. The company has been running these operations efficiently, and with global demand for gold remaining strong, this gives Perseus an edge over others in the industry. Yaouré: The mine produced 123,158 ounces of gold, surpassing the upper end of its guidance range of 108,000 to 124,000 ounces, and it was produced at an AISC of US$1,124 per ounce, below the guided AISC range of US$1,175 to US$1,275. Edikan: The mine produced 96,634 ounces of gold at an AISC of US$1,022 per ounce, approaching the top end of its guidance range of 82,000 to 98,000 ounces, and coming in well below the bottom end of the AISC guidance range of US$1,200 to US$1,300. Sissingué: The mine produced 33,917 ounces of gold at an AISC of US$1,701 per ounce, which was above the guidance range of US$1,500 to US$1,600 due to the lower ore production and higher waste mined during the pit extension. This diversified mix of assets gives Perseus an edge and makes it less vulnerable to region-specific issues, which is a plus in a time of such economic uncertainty. Strong Financial Health Looking at Perseus’s financials, we’re feeling good about its ability to handle any bumps along the way. The company generated net profit after tax of US$201.1 million for the period ended December 31, 2024, up 22% from the previous year. Their gross profit was up 26% to US$265.3 million, with revenues increasing by 19% to US$581.8 million, largely driven by higher gold prices and strong contributions from their mines. Importantly, their net cash from operating activities increased 17% to US$247.6 million, indicating robust cash generation. At the end of December 2024, Perseus had US$628.5 million in cash on hand, up from US$536.9 million in June 2024, which gives the company plenty of flexibility to weather any challenges that come its way. They also have 29,078 ounces of gold bullion valued at US$76 million and US$67 million in investments in listed securities, including a 19.9% interest in Predictive Discovery Limited. Growth and Expansion Perseus isn’t just sitting on its hands, they’re actively expanding. The Nyanzaga Gold Project in Tanzania offers significant growth potential, and we expect this project to contribute meaningfully to future production. The company’s 19.9% stake in Predictive Discovery Limited further supports the growth story, offering upside in the form of equity in a promising exploration company. Attractive Valuation Considering the uncertainty caused by tariffs, we think gold stocks like Perseus offer an attractive risk-reward profile. With its solid operational performance, strong financials, and gold price tailwinds, PRU stands out as an appealing option in the current market. We also believe its valuation is looking favorable when compared to peers, especially given the company’s strong management and growth strategy. In a time when global economic factors like U.S. tariffs are making things unpredictable, gold has historically been a safe bet, and we think Perseus is well-positioned to benefit from this. With its diverse operations, solid financial health, and a smart hedging strategy, Perseus is one of the stronger players in the gold sector right now. If you’re looking for exposure to gold in a world of economic uncertainty, we think PRU is definitely worth a closer look. It’s not just about riding out the storm, it’s about thriving in it, and Perseus seems to be doing just that. Dusk Group Limited (ASX: DSK) – Up +58% TTM Dusk Group Limited (ASX: DSK) could be an excellent investment in 2025, with strong financials, a growing online presence, and smart product innovation. As a specialty retailer of home fragrance products, dusk is tapping into the ongoing demand for home ambiance and self-care, a trend that continues to gain momentum. Strong Financial Performance & Profitability Dusk’s first-half FY25 results speak for themselves. Sales jumped 12.3% year-over-year, with like-for-like (LFL) sales up 10.6%. Online sales saw a massive 68% increase, proving that the company’s digital push is working. Gross profit rose 13.4% to $56.9 million, with margin expansion despite headwinds like rising freight costs and currency volatility. EBIT growth of 20% highlights dusk’s ability to manage costs while driving revenue. What really stands out to us is the company’s rock-solid balance sheet, $38.5 million in net cash and zero debt. That gives dusk plenty of flexibility to invest in growth, navigate economic swings, and reward shareholders. On that note, the board declared both an interim and special dividend of 5 cents per share, showing confidence in the business. Digital Transformation Driving Growth Dusk’s digital expansion is proving to be a major win. Online sales soared 68% and Click & Collect now accounts for 27% of transactions, showing how well dusk is integrating its physical stores with its e-commerce platform. One of the most exciting trends we’re seeing is a younger demographic (ages 15-22) discovering the brand. This fresh wave of shoppers means long-term growth potential, as these customers could turn into repeat buyers, especially as dusk broadens its product appeal. Innovative Products and Brand Expansion Dusk isn’t just riding a wave of demand; it’s actively shaping it. The recent launch of the White Lotus x dusk product line leans into the wellness and spa trend, which is exactly what consumers are looking for right now. We’re also seeing a smart push into the Bath & Body category, which expands dusk’s offerings and strengthens its position in the self-care space. The company’s ability to deliver on-trend fragrances, premium essential oils, and stylish home décor sets it apart from competitors and keeps customers engaged. Seasonal Tailwinds & Retail Momentum Dusk had a strong Christmas trading period, exceeding internal expectations. With Easter and Mother’s Day just around the corner, we expect this momentum to continue into the second half of FY25. A refreshed product lineup, competitive pricing, and well-executed marketing efforts should keep the positive trend going. Resilient Business Model & Long-Term Potential Despite challenges such as inflation, wage increases, and currency fluctuations, dusk has kept costs under control and maintained solid profitability. The company’s ability to navigate these headwinds through supply chain efficiencies and strategic pricing speaks to the strength of its business model. While dusk plans to close two stores by the end of FY25, it’s being selective about optimizing its retail footprint, focusing on high-value locations while continuing to grow its online presence. We see dusk as a strong investment opportunity, backed by steady sales growth, expanding margins, and a healthy balance sheet. Its successful digital shift, growing appeal to younger shoppers, and innovative product lineup position it well for long-term success. With no debt, consistent momentum, and a shareholder-friendly dividend policy, dusk is a retail stock that deserves attention. Cogstate Limited (ASX: CGS) – Up +16% YTD We see Cogstate Limited (ASX: CGS) as a company with plenty of runway for growth. As a leader in digital brain health assessments, it plays a crucial role in both clinical trials and healthcare, helping pharmaceutical companies and medical professionals better understand cognitive function. With strong 1H25 results, improving margins, and solid cost management, we believe Cogstate is in a great position to keep building momentum. Clinical Trials Driving the Business Forward The Clinical Trials segment continues to be the main growth engine, with 1H25 revenue up 27% from last year. This isn’t just about volume, Cogstate is shifting more toward higher-margin software licenses, now 19% of revenue, up from 13% a year ago. That’s helping drive gross contribution margins up to 61%, a big jump from the previous period. Meanwhile, sales contracts executed in 1H25 jumped 147%, highlighting strong demand from pharma and biotech companies looking for better cognitive assessment tools in drug development. A Strong Financial Foundation Cogstate isn’t just growing revenue, it’s doing efficiently. EBIT jumped 167%, thanks to both higher sales and tight cost controls. Staff costs actually decreased, despite expanding the Clinical Trials team, and the company ended 1H25 with $34.2 million in cash, up 35% from the prior year. With $5 million in positive operating cash flow, Cogstate has the financial flexibility to invest in future opportunities without putting pressure on the balance sheet. Healthcare Segment: A Long-Term Play The Healthcare segment had a weaker half, with revenue down due to an amended agreement with Eisai. But despite that, gross contribution margins held strong at 77%, showing the company is keeping costs in check. While near-term growth in healthcare is uncertain, we still see long-term potential as digital cognitive assessments gain more traction in hospitals and primary care settings. Management expects 2H25 revenue to be in line with 1H25, with room for upside if new contract signings pick up. Margins and EBIT should remain stable, and with no major cost increases planned, cash flow should stay solid as well. We like Cogstate’s positioning in the growing digital brain health space, its strong Clinical Trials momentum, improving profitability, and healthy cash balance. With a growing sales pipeline and smart execution, we believe it’s well worth considering for a growth-focused portfolio.