President Trump has announced plans to impose tariffs on all imported goods, sparking concerns over inflation and trade. The tariffs are expected to benefit domestic manufacturers, but may also lead to higher prices for consumers.
To avoid price spikes, some companies are advising consumers to stockpile inventory ahead of the tariffs. Two stocks that could benefit from this effect are Whirlpool and Best Buy. Whirlpool, a major appliance manufacturer, has seen its sales decline in recent quarters, making it a prime beneficiary of the tariff-driven demand for domestic products.
Best Buy, on the other hand, is poised to capitalize on the anticipated electronics upgrade cycle and holiday shopping season, which could be accelerated by Trump’s tariffs. The company’s Q3 earnings report showed weak sentiment, but the potential for stockpiling could lead to a surge in sales during the fourth quarter.
Another company that stands to benefit from stockpiling is Affirm Holdings Inc., which offers financing options for consumers to purchase big-ticket items like home appliances. As consumers prepare to buy more products ahead of the tariffs, Affirm’s fees will increase, making it a prime beneficiary of the stockpiling effect.
Overall, investors should keep an eye on these companies as they navigate the potential impact of Trump’s tariffs on their business models and consumer behavior.
Source: https://www.benzinga.com/content/42682659/3-stocks-to-gain-from-stockpiling-effects-of-the-trump-tariffs