We recently compiled a list of the 10 Stocks Bear the Brunt of Trade Threats. In this article, we are going to take a look at where V.F. Corporation (NYSE:VFC) stands against the other stocks.

Wall Street’s main indices fell further on Tuesday as investors sold off positions to mitigate risks from the ongoing trade tensions among some of the world’s largest economies.

The Dow Jones fell the most during the trading session, losing 1.55 percent, while the S&P 500 declined 1.22 percent. The Nasdaq dropped by 0.35 percent.

Following the US imposition of a 25-percent tax on goods from Canada and Mexico on Tuesday, countries announced a promise to retaliate. Canada, as well as China, which received a 10 percent additional tax, immediately announced retaliation. Mexico is expected to follow suit.

The negative sentiment spilled over to 10 stocks, predominantly retailers, with the tariff threats seen to pose pressures on their profit margins. In this article, we have detailed the reasons behind their declines.

To come up with Tuesday’s worst performers, we considered only the stocks with $2 billion in market capitalization and $5 million in daily trading volume.

A model walking down the runway wearing a fashionable and performance-based apparel designed by the company.

V.F. Corporation (NYSE:VFC)

V.F. Corporation (NYSE:VFC) fell for a second day on Tuesday, losing 7.40 percent to close at $22.54 apiece as investors sold off positions to minimize risks from the ongoing trade war’s impact on its business operations.

The company, which designs, manufactures, and markets branded apparel such as The North Face, Timberland, Vans, Dickies, Jansport, and Kipling, among others, is set to bear the brunt of higher fees on importation, manufacturing, and raw materials caused by higher taxes as a result of the ongoing trade war.

V.F. Corporation (NYSE:VFC) currently owns various facilities globally, including China, Mexico, and Canada, which all have been slapped with higher taxes by President Donald Trump.

Prior to trade threats, V.F. Corporation (NYSE:VFC) earlier this year said that it was on track to deliver on its 2027 target of delivering a five-year compounded annual growth rate (CAGR) of mid-to-high single digits over the next five years and earnings per share to grow at a five-year CAGR of high single to a low double-digit percentage.

Overall VFC ranks 5th on our list of Tuesday's worst performers. While we acknowledge the potential of VFC as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than VFC but trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

 

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Disclosure: None. This article is originally published at Insider Monkey.