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Costco, Nike can best survive supply chain turmoil, traders say

Supply chain issues have plagued many retailers, but some stocks may be able to withstand the heat, the two traders say.

Bank of America listed Yeti Holdings and Dick’s sporting goods as top picks in the fourth quarter due to its relatively low exposure to Vietnam’s supply problems, but catch-all play like Costco is better. Maybe, Nancy Tengler of Ruffer Tengler Investments said CNBC’s “Trading Wednesday’s” State “.

“This is a company in a good position to deal with supply chain disruptions,” said the company’s chief investment officer. “The purchasing team is probably one of the best in the industry.”

Costco’s management said in its latest earnings announcement that it could stockpile inventory in a warehouse format and purchase it when it becomes available. This is a promising advantage for vacations, Tengler said.

She said she would also benefit from the rise of outdoor retailers like Yeti and Dick’s Sporting Goods, as well as shopping for holidays, toys and jewelry.

In the same interview, athletic wear giant Nike could also turn up, said Jeff Kilberg, chief investment officer at Sanctuary Wealth.

“You want to own it,” he said, pointing out that the stock was recently tested and the 200-day moving average remained at around $ 145, meaning it has established support within that range. do.

Nike closed almost 2% on Wednesday for $ 156.30.

Kilburg, founder and CEO of KKM Financial, said: He added that Nike has a market capitalization of over $ 237 billion, Dick’s sports equipment has a market capitalization of about $ 10.7 billion, and Yeti has a market capitalization of only $ 7.5 billion.

Nike’s share price was lowered earlier this year in response to supply chain issues, but its technical position and negative sentiment surrounding Nike could trigger an upward move, Kilberg said.

“I think this offers a little out-performance opportunity,” he said.

Disclosure: Tengler and Laffer Tengler Investments own a stake in Costco.

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Costco, Nike can best survive supply chain turmoil, traders say

Source link Costco, Nike can best survive supply chain turmoil, traders say

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