With Donald Trump vying to get back into the White House, the investment media began to focus on Trump tariff stocks. These are the companies that should benefit from the former, and quite possibly future, president’s 10% across-the-board tariff on all imports into the country. Trump tariffs may spell big things for certain companies.

“To be sure, tariffs can benefit U.S.-based manufacturers, but they can raise prices for U.S. consumers. The average annual spending hike of a 10% tariff on imports for a U.S. consumer is estimated to fall between $1,000 and $3,000 a year, according to the American Action Forum and the Peterson Institute for International Economics,” stated Barron’s contributor Al Root. 

There are certain industries that are more dependent on imports, such as steel, aluminum, and automotive. Others have almost no reliance on imports such as restaurants, online sports betting, and construction.  Thus, Trump tariffs wouldn’t hurt these companies.

Who are the businesses that could win big should Trump capture the November election and impose his blanket tariff? I’ll find one name from each of the three industries mentioned above.  

Chipotle Mexican Grill (CMG)

Chipotle Mexican Grill’s (NYSE:CMG) stock has fallen considerably since hitting a 52-week high of $69.26 in mid-June. It reported excellent Q2 2024 results on July 24. Unfortunately, it was the same day the S&P 500 lost 2.3% and the Nasdaq 100 a whopping 3.65%, putting significant downward pressure on all stocks. 

It would be interesting to know how many of their ingredients for its burritos are imported. My guess is that it would be quite low because of its focus on quality. 

As for its results, same-store sales increased 11.1% in the second quarter, thanks to an 8.7% increase in transactions and a 2.4% increase in the average bill. On the bottom line, its adjusted earnings per share rose 36.0% to $0.34. 

Of the 52 new company-operated restaurants it opened in Q2, 46 of which had Chipotlane drive-thru windows. Its digital sales accounted for 35.3% of its 2.95 billion in food and beverage revenue. 

For 2024, it expects same-store sales growth in the mid to high-single digits, with approximately 300 new store openings, 240 of them have drive-thru lanes. 

DraftKings (DKNG)

DraftKings (NYSE:DKNG) stock is up 215% since the beginning of 2023. However, it’s cooled off considerably since hitting a 52-week high of $49.57 in late March. 

Two analysts recently lowered their price targets on the stock heading into Q2 2024 earnings that are out Aug. 1 after the markets close. Truist analyst Barry Jonas lowered his price target to $53 and Macquarie analyst Chad Beynon lowered his to $52. However, both have Buy ratings on the stock. 

Beynon expects the online sportsbook to grow EBITDA by 75% a year through 2026. For 2024, he sees it generating EBITDA of $479 million, $794 million in 2025, and $1.36 billion in 2026. 

Both analysts believe DKNG stock is a growth stock at a reasonable price. Based on an enterprise value of $18.46 billion, it trades at just 13.6x its 2026 EBITDA.   

Of the 37 analysts covering DraftKings stock, 29 (78%) rate it a Buy, with a target price of $52.50.  

Trex (TREX)  

Trex (NYSE:TREX) has outperformed the S&P 500 over the past five years. However, it’s down over 5% in 2024. 

The company is the world’s largest manufacturer of wood-alternative decking. It has 12% market share of the $8 billion U.S. decking and railing category. Trex reports that 51% of homeowners spent $25,000 or more on home renovations in 2023, up from 37% in 2020.

That’s very good news if you’re a TREX shareholder. Eventually, investors will come around to the company’s appeal. 

Meanwhile, the company has a 12% compound annual growth rate for revenue since 2019. To keep revenues growing by double digits, its capital expenditures over the past five years was $767 million. 

Over the same period, its CAGR for adjusted EBITDA was even better, up 13%. In 2024, it expects to grow revenue by 12% at the midpoint of its guidance with an EBITDA margin of 30.25%. 

It currently has manufacturing facilities in Virginia and Nevada with a new plant in Little Rock, Arkansas, soon to be built. With manufacturing happening here in the states, Trump tariffs shouldn’t hurt this company.

On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.

On the date of publication, Will Ashworth did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.