10 Stocks Bear the Brunt of Trade Threats

1. Best Buy Co. Inc. (NYSE:BBY)

Best Buy took a battering on Tuesday, losing 13.30 percent to finish at $75.20 apiece as investors sold off positions following its CEO’s pessimistic outlook, saying that prices for US consumers would rise as tariffs on China and Mexico officially took effect.

During BBY’s earnings call, CEO Corie Barry said that the company expects its vendors across all segments to pass along some level of tariff costs to retailers.

This, she said, would make price increases for American consumers “highly likely.”

She added that BBY directly imports 2 to 3 percent of its products and that the company is now reviewing and evaluating supply chain sources.

“The giant wild card here, obviously, is how the consumers are going to react to the price increases, in light of a lot of price increases potentially throughout the year and a general consumer confidence that is showing a little signs of weakness at the moment,” added BBY CFO Matt Bilunas on the call.

While we acknowledge the potential of BBY as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than BBY but trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock

Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.