We recently compiled a list of the 10 Stocks Bear the Brunt of Trade Threats. In this article, we are going to take a look at where Smurfit Westrock Plc (NYSE:SW) stands against the other stocks.
Wall Street’s main indices fell further on Tuesday as investors sold off positions to mitigate risks from the ongoing trade tensions among some of the world’s largest economies.
The Dow Jones fell the most during the trading session, losing 1.55 percent, while the S&P 500 declined 1.22 percent. The Nasdaq dropped by 0.35 percent.
Following the US imposition of a 25-percent tax on goods from Canada and Mexico on Tuesday, countries announced a promise to retaliate. Canada, as well as China, which received a 10 percent additional tax, immediately announced retaliation. Mexico is expected to follow suit.
The negative sentiment spilled over to 10 stocks, predominantly retailers, with the tariff threats seen to pose pressures on their profit margins. In this article, we have detailed the reasons behind their declines.
To come up with Tuesday’s worst performers, we considered only the stocks with $2 billion in market capitalization and $5 million in daily trading volume.
A worker in a warehouse packaging a modern storage furniture.
Smurfit Westrock Plc (NYSE:SW)
Smurfit Westrock Plc (NYSE:SW) declined for a second straight day on Tuesday, losing 6.81 percent to finish at $46.69 apiece as investors sold off positions amid the impact of the ongoing trade war on its business.
Smurfit Westrock Plc (NYSE:SW), a global paper-based packaging company that is present in 40 locations, including China, Canada, and Mexico, stands to be significantly hurt by higher prices of raw materials further aggravated by US tariffs.
In the fourth quarter of 2024, Smurfit Westrock Plc (NYSE:SW) saw net income jump by 192 percent to $146 million from $50 million in the same period a year earlier, as net sales grew 163 percent to $7.539 billion from $2.862 billion.
For the full year of 2024 alone, however, net income fell by 61.3 percent to $319 million from $826 million in 2023, while net sales dived by 74.5 percent to $21.1 billion from $12.09 billion year-on-year.
Overall SW ranks 7th on our list of Tuesday’s worst performers. While we acknowledge the potential of SW 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 SW but trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
