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Jacob: More earnings on the way. Sarge Guilfoyle of Real Money the TheStreet's premium site, what stocks you picking before earnings next week.

Sarge: Even though there are not that many earnings, it's still pretty exciting. For the potheads, we've got Canopy Growth and we got Tilray. For the retail crowd, we got Macy's, we got Walmart. I got out of Walmart last week when the presidential tweets came out about September. so I'll be watching that one to see if maybe I need to get back in. So far, so good on that one. From the tech space, we've got Cisco, that's a big one now. That name has bounced off $51 support three times now. I'm long the name. My target price on that is $70, we'll see how that goes. Very interested in how that plays out. The other one is NVidia. Also all Alibaba, but I don't play Chinese stocks right now, but NVidia is very interesting because we've just seen how fantastic Lisa Su has positioned AMD. She's still a Robert Swan's lunch over at Intel. Is she stealing Jensen Huang's lunch at NVidia? We'll find out. I'm long but not a full position in that one. I long about three fifths for a position.

Jacob: I want to go back to Macy's and Walmart. Macy's versus Walmart. Which one are you more convinced can mitigate tariffs and better?

Sarge: I don't think either one of them will have a real easy time with tariffs. I'm much more comfortable with Walmart because how they positioned themselves in the battle against Amazon in the e-commerce space. That also makes Target a good play. By the way, they're not reporting next week, but Target's a name. During this retail sell off, As I rotated out of most of my retail longs, I really only hung onto Kohl's because I'm not winning in Koh'ls, so I really am kind of a stubborn old Irish guy. And Amazon because Amazon was cheap, so I bought a few shares of Amazon. But I think Target as as they're all kind of cheap right now. If the market does start to move in the right direction, I think tTarget is what I might want to jump on.

Jacob: Well, real quick, I want to get to Target in a second, but on Walmart, how much can Walmart sales really fluctuate? They're so weighted towards staple goods. Is it really that much that they have to raise prices to keep margins? I mean, is it really that much of a problem?

Sarge: Well, they also have wage pressures. They have, they have a number of issues. I mean, I like the company. I'm not saying I don't like them, and I would not have sold them if not for that presidential tweet last week. But the first thing I did that day was sell most of my retail positions because I just felt that it was the first hit. And then I took a look at my tech positions. But retail was the first one out the door.

Jacob: Alright. And don't forget about Target.

Sure, Walmart (WMT - Get Report) is closer to a staple and Macy's (M - Get Report) a discretionary, but is the type of consumer company they both are the only factor in figuring out which one can mitigate tariffs better? 

No, says veteran stocks trader and RealMoney contributor Sarge Guilfoyle

With Trump's three of an added 10% to 25% tariffs on Chinese apparel, toys and electronics coming into the U.S., Walmart and Macy's are two companies investors certainly have their eyes on. Walmart reports earnings August 15 before the market opens. Macy's reports earnings on August 14 before the open. 

So which company can mitigate potentially added tariffs better? Well most of Walmart's products are consumer staples, which makes it easier to raise prices to protect gross margins. Macy's management, however, has said in 2019 it needs to focus notably hard on mitigating tariffs.

"I don't think either one of them will have a real easy time with tariffs," Guilfoyle said. But Guilfoyle isn't much focused on the tariffs. "I'm much more comfortable with Walmart because how they positioned themselves in the battle against Amazon (AMZN - Get Report) in the ecommerce space," he said. Walmart and Amazon are now locked in a one-day delivery battle, a battle that can only be fought between two retail heavy weights with cash to deploy. Walmart has shown it is growing its e-commerce business effectively. 

Guilfoyle is also considering Cisco (CSCO - Get Report) , which reports earnings after the market closes August 14. 

"From the tech space, we've got Cisco -- that's a big one now," he said. Guilfiyle thinks Cisco can soon get to $70 a share, which represents 33% upside from the stock's current level. Plus, Guilfoyle mentioned Cisco has developed a support level of $51 a share, so downside may be limited. 

Amazon and Cisco are holdings in Jim Cramer's Action Alerts PLUS member club. Want to be alerted before Jim Cramer buys or sells these? Learn more now.

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