After President Trump increased tariffs on Chinese imports to 104%, it is unlikely that US stocks will see a meaningful recovery.
This month, the benchmark index was trading at times as low as 20% lower than its highest level for this year.
Not all stocks are created equal.
A number of US stocks are well-positioned to be resilient against a new trade war. Walmart and Chewy are two of the most resilient stocks.
Take a look at the future of each one in 2025.
Walmart Inc (NYSE: WMT)
G Squared’s chief investment officer Victoria Greene believes Walmart will emerge as “a safe haven” amid Trump’s tariffs against dozens of nations worldwide.
Walmart’s revenue comes from categories that are not discretionary, such as groceries and clothes. She believes this will continue to be the case despite new tariffs on Chinese imports.
Walmart offers the best value for money. Greene said in an interview with CNBC this week that Walmart is very strong when it comes to grocery.
Walmart+ could also be used to help navigate the Trump tariffs, and any related fears of an upcoming recession.
Walmart reports that members spend about three times as much money and shop more twice as often than non-members.
A 1.10% yield on WMT makes it even more attractive, especially if you are betting that the economy will slow down in 2025.
Wall Street appears to be in agreement with Greene regarding Walmart shares.
Retail giant’s consensus rating is currently “buy”, with an average target price of $109, which indicates a possible upside of almost 30%.
Chewy Inc (NYSE: CHWY)
Chewy is able to hold its own in the face of tariffs and market volatility, as they have very limited production or revenue exposures with China.
Sumit Singh is the chief executive of the company. He says that the online retailer, which generates over 85% revenue in the consumables category and health, has a “well-insulated position” against tariffs.
In a recent CNBC interview, the CEO said that even though China produces a large percentage of goods such as hard products, it is still not disproportionately high.
This has helped Chewy to report strong financials in spite of a difficult backdrop.
The Florida-based firm reported in March a growth of 15% on an annualised basis for its Q4 revenues, which reached $3.25 Billion on the basis of 28 cents per share.
Comparatively, analysts were at $3.2 Billion and 21 Cents per share.
David Bellinger, Mizuho’s analyst, stated in a recent research report that Chewy also has many growth prospects, such as an under-penetrated mobile app and initiatives aimed at vets.
The buyback program of the company is expected to unlock future growth as well.
The ICD published the article Top 2 Stocks Safe from Trump’s Tariff Mayhem.
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