Toro Company (The)

Heavy equipment manufacturers like Caterpillar, Toro, and Deere are likely to face challenges from tariffs, including higher costs and softer demand. While they may eventually adapt, the uncertainty makes it prudent to be cautious in the near term.

Related tickers: CAT, TTC, DE.

Toro's stock dropped 5% after the company reported lower-than-expected Q1 revenue, despite keeping its full-year outlook unchanged. While Toro's commercial business is performing well, its residential business is slow, and the company shipped fewer products due to unsold inventory. However, Toro has been able to reward shareholders with a dividend increase and stock buybacks, and its dividend yield is the most attractive in over a decade.

Related tickers: TTC.