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Brian's Big Idea: Tariffs, Cars and Commodities

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There is a broader lack of confidence in the markets as the tariffs are scheduled to take effect on April 3rd. One particular part of the economy that is really feeling it is the automotive sector.

In this video Brian Bolan, the aggressive growth stock strategist for Zacks Investment Research, takes a look at 2 automotive companies that are based in Europe as well as a tire company that is based in Europe.

Volvo (VLVLY - Free Report) is a Zacks Rank #2 (Strong Buy) and is trading slightly higher just days before the tariff go into effect. VLVLY made around 760K cars last year and of that about 125K were sold in the US. There is a Volvo facility in South Carolina, which should help minimize the impact of tariffs.

Ferrari (RACE - Free Report) is a Zacks Rank #3 (Hold) and made 13,752 cars last year with none of them being made in the US. It is estimated that between 3,600 to 3,800 were delivered to the US. The company issued a release today which stated that some model prices will not be impacted and others will see a 10% increase. The statement put out by the company implies that the most expensive models will not see any impact from the tariffs.

Michelin (MGDDY - Free Report)  is a Zacks Rank #1 (Strong Buy) and they make tires for cars. This company is based in France and will likely see a big impact from tariffs as US based customers will see more favorable pricing from domestic tire producers.

Finally, we take a look at Prairie Operating Co. (PROP - Free Report) which is a Zacks Rank #1 (Strong Buy) and a domestic producer of oil. Cars need gasoline and with oil prices moving up now looks like a good time to take a look at this stock. The company also just completed a major acquisition and we could see a lot of new research coverage on the company in the coming days and weeks ahead.

The tariffs look to have an impact on all commodities, not just cars and investors need to pay close attention to those stocks. There is a wonderful service headed by our professional trader Jeremy Mullin and it is called Commodity Innovators.

Commodity Innovators leverages Jeremy’s deep experience in trading stocks along with the power of the Zacks Rank to help investors select the best stocks in the broader commodity basket. He writes a daily summary of the important aspects of the market in general and highlights news of note from the stocks in his portfolio.

Be sure to check out Commodity Innovators at Zacks Investment Research.


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Ferrari N.V. (RACE) - free report >>

AB Volvo (VLVLY) - free report >>

Michelin (MGDDY) - free report >>

Prairie Operating Co. (PROP) - free report >>

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