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?
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.
"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.
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