These 4 companies look Amazon-proof.
Amazon has every retailer in the US on notice, but RBC Capital Markets has identified four companies that look poised to withstand the pressure.
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Believe it or not, some companies might actually be able to withstand the Amazon juggernaut.
(rew Angerer/Getty Images)
Amazon has every single retailer in the US on notice.
The Jeff Bezos-led juggernaut is armed with a war chest of cash and it hasn't been shy about throwing its weight around in the past couple months, disrupting every industry in sight.
Its $13.7 billion acquisition of Whole Foods threw the whole grocery industry into disarray, while Blue Apron's battered IPO price ended up as collateral damage. Its newly-announced partnership with Nike sent the likes of Dick's Sporting Goods and Under Armour tumbling. Heck, even the payments industry is facing a major, Amazon-led
shake-up.
But there are still a few bright spots, says RBC Capital Markets — companies whose existing business models have created a natural insulation from Amazon, as well as those that have been quick to adapt.
Here are four such corporations highlighted by RBC in a recent client note:
CarMax
Ticker: KMX
Total return year-to-date: 2.8%
Rationale: "We believe KMX provides true scarcity value with solid comp momentum and a business model that will be difficult for Amazon or others to disintermediate."
Source: RBC Capital Markets
Walmart
Ticker: WMT
Total return year-to-date: 17%
Rationale: "We believe Walmart will ultimately be one of the best positioned retailers over the long-term due to its existing size, scale and technological improvements."
Source: RBC Capital Markets
Best Buy
Ticker: BBY
Total return year-to-date: 40%
Rationale: "Best Buy has already weathered the worst of the 'Amazon storm' through price matching and substantial in-store/online improvements, and has now been steadily gaining market share ... Best Buy has fought back against Amazon better than most."
Source: RBC Capital Markets
Dollar General
Ticker: DG
Total return year-to-date: 1.1%
Rationale: "While competitive concerns will likely remain an overhang, the stock is fairly inexpensive and, in our view, the Amazon threat seems very modest."
Source: RBC Capital Markets
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