There's a lot of uncertainty in the stock market right now, and it's causing many investors to reconsider some of their stocks and look at which ones might offer good opportunities to buy. With U.S. President Donald Trump's ongoing tariff actions against trade partners and some economists increasing their estimates of a potential recession, it's no surprise that investors are taking a more skeptical approach to each stock they buy.

When considering two leading consumer goods companies, Amazon (AMZN -8.89%) and Home Depot (HD -3.98%), which looks like the best stock to buy right now? Let's take a look at what each company is doing right now to find out.

Image source: Amazon.

Amazon could come out of this stronger

Amazon's largest business is its North American e-commerce segment, which brought in $115.6 billion in sales in last year's fourth quarter. Some investors are understandably worried that when tariffs kick in or if a recession occurs, Amazon's e-commerce platform could suffer.

I don't think Amazon is immune to a slowdown, but it's worth taking a closer look at what's happened to the company's business in the wake of previous downturns. During the first year of the COVID pandemic, Amazon's revenue jumped 22%, and during the 2008 financial crisis, sales rose 29%.

There's no guarantee Amazon will do as well if the economy slows again. But it's important to look at these past results as a reminder that even in very uncertain times, Amazon has been able to thrive. One reason for this is because Amazon's core businesses are diversified.

While e-commerce accounts for most of its sales, it's the company's Amazon Web Services (AWS) business that could continue to propel it forward. AWS holds 30% of the cloud computing market, ahead of Microsoft and Alphabet, and it leads at a time when cloud sales are likely to accelerate.

Goldman Sachs estimates that global cloud sales will reach $2 trillion by 2030, thanks to artificial intelligence. With Amazon's lead in the cloud space, and the company a key player in AI with its services (Amazon has invested $14 billion in AI leader Anthropic), the company is well positioned to benefit from AI cloud demand in the coming years.

With its leading position in cloud computing and e-commerce, there's little to worry about for Amazon's long-term potential. Sure, Amazon's stock price may fluctuate in the short term, but its core opportunities are well intact.

Home Depot is still strong, but questions remain

Home Depot recently reported its fourth-quarter results, which beat expectations. The retailer's sales were $39.7 billion, ahead of Wall Street's consensus estimate of $39.1 billion. And earnings per share of $3.02 outpaced analysts' consensus estimate of $3.01.

While the leading home improvement retailer in the U.S. had a solid quarter, it may have a rough time in the near term. Home Depot's management estimates that 2025 sales will increase by just 2.8%, and that adjusted earnings per share will decline by 2% compared to the prior year.

High mortgage interest rates, expensive houses, and potential tariffs are putting pressure on Home Depot's business outlook. While some recent data shows that homebuyers are returning to the market, an economic slowdown could quickly put an end to that. And if some of President Trump's harshest tariffs are put into place, it could cause people to cut back on home improvement spending.

The latest consumer sentiment data showed that Americans are much less optimistic about the economy than they were this time last year and that inflation is once again on their minds. If people end up pulling back on their spending substantially, Home Depot will likely feel the results.

That doesn't mean Home Depot's stock won't be a good long-term investment, but with so much uncertainty from tariffs, inflation, and lower consumer sentiment, Home Depot could have some difficult quarters ahead.

Amazon is the better buy

Amazon's strong position in cloud computing and its lead in e-commerce make it the better stock to buy right now. I'm still optimistic about Home Depot's future, but Amazon's diversified businesses, as well as its ability to tap into huge trends like AI, give it a leg up in this comparison.

Just keep in mind that with many people trying to assess what's happening with the economy right now, both stocks are likely to remain volatile for the time being.