US stocks remain hard-pressed for meaningful recovery after President Trump slapped Chinese imports with an even higher 104% tariffs.
The benchmark index, at one point, was seen trading as much as 20% below its year-to-date high this month.
However, not all stocks were created equal.
There are still a bunch of US equities that are strongly positioned to remain resilient in the face of an emerging trade war. These include Walmart and Chewy.
Let’s take a closer look at what each of those two has in store for investors in 2025.
Walmart Inc (NYSE: WMT)
G Squared chief investment officer Victoria Greene expects Walmart to emerge as a “safe haven” amidst Trump’s new tariffs on dozens of countries worldwide.
Walmart drives a significant chunk of its revenue from non-discretionary categories like groceries and clothing which she believes will remain strong regardless of new duties on Chinese imports.
“Walmart provides the most value and bang for your buck. They’re very strong on grocery, which I think gives it the defensive posturing,” Greene argued in a CNBC interview this week.
Additionally, the big box retailer could tap into its membership programme, Walmart+, to navigate Trump tariffs and the related concerns of a recession ahead.
Members shop twice as much and spend roughly three times more than non-members, according to Walmart.
Plus, a 1.10% dividend yield makes buying WMT shares all the more exciting, particularly if you’re betting on a slowdown in 2025.
Wall Street seems to agree with Greene on Walmart stock.
The consensus rating on the retail giant currently sits at “buy” with a mean target of $109, indicating a potential upside of nearly 30% from here.
Chewy Inc (NYSE: CHWY)
Chewy could keep its own amidst tariff tantrum and the related market volatility as it has very little production or revenue exposure to China.
According to the company’s chief executive, Sumit Singh, the online retailer is “well-insulated” from tariffs as it generates more than 85% of its revenue from consumables and the health category.
Even the percentage of hard goods that are sourced from China is not that big, he told CNBC in a recent interview.
That’s been helping Chewy report solid financials amidst a challenging backdrop.
In March, the Florida-based company reported a 15% annualised growth in its Q4 revenue to $3.25 billion on 28 cents of adjusted earnings on a per-share basis.
Analysts, in comparison, were at $3.2 billion and 21 cents a share, respectively.
Additionally, Chewy has a bunch of growth opportunities, including an “under-penetrated” mobile app as well as vet-focused initiatives, said Mizuho analyst David Bellinger in a research note.
He expects the firm’s buyback programme to help unlock upside moving forward as well.
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