Home appliance makers SharkNinja (SN) and Yeti (YETI) are falling today on concerns about Donald Trump’s tariff policy plans. Now that Trump has won the U.S. presidential election, many stocks and entire industries stand to be impacted severely. While his tax cut plans will likely boost certain sectors, SharkNinja and Yeti’s performances today provide a key lesson; some companies are at substantial risk from his policies, specifically those that center around tariffs.
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The Market Risk Posed by Trump’s Tariffs
Why are SharkNinja and Yeti falling on news of Trump’s victory? According to one analyst from Jefferies (JEF), his plans for imposing high tariffs could pose a substantial risk to these companies, as they may impact their cost of goods sold and, ultimately, their margins. This would explain why SN stock fell this morning and has still not recovered, pushing shares down 3% for the week.
YETI, by contrast, is still in the green for the past five days, though today’s losses have almost pushed it into the red. Both companies are facing an uncertain future, and the potential for pressure on the cost of goods sold could certainly serve to worry investors. However, Jefferies also notes that both companies have moved some of their production operations outside of China.
This could help both companies survive in the tariff-centric economy that Trump has promised. Since he has no clear plan for offsetting revenue other than tariffs, much of Trump’s economic policy agenda will likely center around these high import taxes. Companies that are dependent on Chinese goods or labor may not be so lucky.
Which Home Appliance Stock Is the Better Buy?
Between these two home appliance stocks, Wall Street is more bullish on SharkNinja. Analysts have a Strong Buy consensus rating on SN stock based on seven Buys and zero Holds or Sells assigned in the past three months, as indicated by the graphic below. After a 103% rally in its share price over the past year, the average SN price target of $125.60 per share implies 36% upside potential.
Despite these Trump tariff risks, Jefferies Analyst Randal Konik maintains a Buy rating on SharkNinja stock. His bullish price target of $150 implies a 63% upside potential.
