Stocks to Consider After Jerome Powell's Comments: Amazon, Enbridge, Vertex

Navigating the Market After Powell: Promising Stocks to Watch

Back in the 1970s, the stock brokerage firm E.F. Hutton aired commercials that featured the line, "When E.F. Hutton talks, people listen." While that statement might not hold the same weight today, we could easily replace E.F. Hutton with Jerome Powell.

Powell, as the Chair of the Federal Reserve, commands the attention of the financial community whenever he speaks. Recently, his remarks in Rhode Island, stating that "equity prices are fairly highly valued," certainly caught my attention.

He's not wrong. In fact, he might be understating it, considering that Warren Buffett's favorite valuation metric (the ratio of total U.S. stock market capitalization to GDP) is at an all-time high. This environment calls for careful stock selection.

Despite the potentially frothy market, some stocks still present compelling opportunities. Here are three stocks that I find particularly attractive right now.

1. Amazon (AMZN)

I won't claim that Amazon's stock is inexpensive. With a forward price-to-earnings ratio of 29.2, it's certainly not a value play. However, traditional earnings-based valuation metrics haven't historically been the best way to assess Amazon, and that likely remains true today.

The core reason is Amazon's aggressive reinvestment strategy. The company pours a significant portion of its profits back into expanding its business, which masks its true bottom-line potential. Despite this, Amazon's earnings continue to surge, growing by 35% year-over-year in the second quarter of 2025.

Amazon is currently channeling its investments primarily into Amazon Web Services (AWS). This is a smart move, given the powerful AI tailwind that's benefiting the cloud computing sector. Importantly, AWS boasts significantly higher profit margins compared to Amazon's e-commerce operations.

Beyond AWS, Amazon is also pursuing other ambitious ventures. The company has invested heavily in its Project Kuiper satellite network, which is slated to begin providing satellite internet services later this year. I'm also watching Amazon's efforts to compete with Meta Platforms in the smart glasses market with great interest. The continued expansion of diversified revenue streams mitigates reliance on a single market.

2. Enbridge (ENB)

In an overvalued stock market, a correction is always a possibility. However, certain stocks are likely to perform well due to their perceived safety and stability. I consider Enbridge to be one of those stocks.

Enbridge is primarily known for its leadership in the midstream energy sector. Its extensive pipeline network transports approximately 30% of the crude oil produced in North America and 20% of the natural gas consumed in the U.S. Furthermore, Enbridge has evolved into the largest natural gas utility by volume in North America.

These businesses contribute to Enbridge's resilience. The company has minimal exposure to commodity price fluctuations, and around 80% of its earnings before interest, taxes, depreciation, and amortization (EBITDA) is protected from inflation. The company's strong infrastructure also mitigates regulatory risk. Data centers supporting AI are driving natural gas demand, creating an opportunity for continued growth.

Enbridge offers attractive total returns even without significant share price appreciation. Its dividend yield currently stands at 5.5%, and the company has increased its dividend for 30 consecutive years.

3. Vertex Pharmaceuticals (VRTX)

It's difficult to imagine thousands of cystic fibrosis (CF) patients discontinuing their life-sustaining medications due to economic downturns or stock market volatility. This inherent stability is one reason why I'm drawn to Vertex Pharmaceuticals, particularly in uncertain times. Beyond its defensive qualities, Vertex also possesses exceptional growth potential.

Even without launching new products, Vertex's profits are poised to increase in the coming years. This is due to its newer CF therapy, Alyftrek, which carries a lower royalty burden than its other CF drugs. Vertex anticipates a significant shift from its top-selling CF therapy, Trikafta/Kaftrio, to Alyftrek over time, which will positively impact margins.

Vertex is also actively expanding its product portfolio. Casgevy, the groundbreaking CRISPR gene-editing therapy, is gaining considerable traction. Journavx, approved in the U.S. earlier this year, is experiencing strong physician and patient acceptance, prompting Vertex to increase its sales and marketing investments in the non-opioid pain drug.

I anticipate the addition of two more products to Vertex's pipeline in the near future. The company plans to submit global regulatory filings for zimislecel for the treatment of severe type 1 diabetes next year. Furthermore, Vertex intends to seek accelerated U.S. approval for povetacicept in treating IgA nephropathy in 2026, suggesting a robust future pipeline.