Market Turmoil: Tariffs Sink S&P 500, DICK'S & GAP Shine Bright

Tariff concerns are hitting the S&P 500, down 2% in 2025. Despite volatility, DICK'S sporting goods sees earnings surprise and robust analyst ratings. Meanwhile, GAP and Norwegian navigate lows yet show potential upside amid challenging retail conditions.

Date: 02-04-2025

AI Rating: 7

**Market Overview**

The current report indicates significant concerns over tariffs affecting raw materials and consumer pricing, which are contributing to the S&P 500's decline of 2% in 2025. This downturn marks a worrying trend as the index heads for its first quarterly loss since June 2023. The volatility has led investors to shift their portfolios away from consumer cyclical stocks due to the anticipated drop in customer demand during economic stress.

**Earnings Per Share (EPS)**

DICK'S Sporting Goods has recently surprised analysts by exceeding EPS estimates of $3.47 by $0.15, showcasing their business's resilience amidst market turbulence. This positive earnings result contributes to investor confidence and suggests potential for future growth. GAP has also reported an EPS of $0.54, surpassing estimates of $0.36, further positioning them favorably in the current environment.

**P/E Ratios and Potential Upside**

The report highlights DICK'S P/E ratio at 14.87 and notes that it falls below the typical 20 P/E threshold, which analysts view as a buying opportunity. GAP's P/E ratio is even lower at 10.0, suggesting that the stock may be undervalued relative to its earnings potential. Both companies show signs of significant potential upside, with projected appreciation of 18% for DICK'S and 35% for GAP. Norwegian Cruise Line also has a favorable P/E ratio of 18.77 and an upside potential of 41.43%, bolstered by strong institutional interest.

**Analyst Ratings**

The overall aggregate ratings for DICK'S and Norwegian Cruise Line are noted as Moderate Buy, while PDD is highlighted with a high potential upside of 35.66%. Such ratings reflect a cautious optimism among analysts, even in a challenging market. Consumer cyclical stocks, despite current pressures, may provide strong long-term value based on their fundamentals and growth outlooks.

Stocks: DKS GAP NCLH