Retail stocks that can withstand new tariffs, playing the small-cap rally

(This is a wrap-up of the key money moving discussions on CNBC’s “Worldwide Exchange” exclusive for PRO subscribers. Worldwide Exchange airs at 5 a.m. ET each day.) Investors are looking for opportunities in the biotech sector, and analysts name the stocks that would be least impacted by potential new tariffs on goods from China, Mexico and Canada. Worldwide Exchange Pick: Amgen David Katz of Matrix Asset Asset Advisors is bullish on biotech Amgen (AMGN) its weight loss drug MariTide moving to a Phase 3 trial in 2025. ‘We think if its good and matches what the company’s body language has been the stock has a very good risk reward over the next six-to-12 months,” said Katz “You are buying at a good price, you are getting a good [dividend] yield and you got that possibility of good upside on a weight loss drug.” Amgen released Phase 2 results Tuesday showing approximately 20% weight loss over a year with a monthly injection. However, the results appeared to disappoint investors sending the stock lower in the premarket. Potential tariff impact on retail and markets Oppenheimer retail Analyst Rupesh Parikh thinks retailers Walmart and Costco are well positioned and could potentially gain market share if new tariffs are added to imports from China, Mexico and Canada. President-elect Donald Trump announced Monday on Truth Social that he would impose an additional 10% tariff on imports from China and 25% tariffs on goods from Mexico and Canada when he takes office. “For Walmart about two-thirds of their sourcing comes out of the U.S. market. They may have about 10% from international markets,” said Parikh. He added: “Costco has a very limited [stock keeping unit] assortment, so if you do see higher tariffs they can very easily manage around that and source different product.” Katz, however, is concerned about the tariff impact on the market. “We think tariffs across the board are a lose-lose game. Right now, the U.S. markets are overlooking, but we think in the next few months its going to get spooked by it. We would not be chasing this rally. Tariffs are worrisome when it comes to global trade and worrisome in terms of inflation,” said Katz. Small caps hit an all-time high The Russell 2000 hit an all time high on Monday. Financial advisor Doug Boneparth of Bone Fide Wealth said the rally is benefitting his clients that have maintained balanced portfolios and resisted the urge to have an overconcentration in megacap stocks. “Take your 80/20 portfolio your risk adjusted portfolio you are seeing about a 7%-8% allocation to small caps, maybe 11%-12% to midcaps,” Boneparth said. “Basically for the last year or two you have large caps creating all this performance. Now, you are getting a lift from small caps and mid caps as well.”