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Goldman Sachs: $15 Minimum Wage Would Hit These Stocks Hardest

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Goldman Sachs: $15 Minimum Wage Would Hit These Stocks Hardest

A number of states and cities have issued minimum wage hikes in the past couple of years. With minimum wage hikes starting to gain momentum, Goldman Sachs analyst Matthew Fassler addressed the issue every investor has on his or her mind: Which companies could be hit hardest by a potential federal minimum wage of $15/hour?

“Those paying relatively low wages and serving high-income customers unlikely to feel a bump from minimum wage hikes are most exposed, while those paying higher wage rates while serving relatively low-income consumers are best-positioned,” Fassler explains.

Related Link: Kate Spade's Surprise Sale Certainly Got Social Media's Attention

Fassler gave a rundown of the retailers that are most and least-exposed to a federal wage hike.

Most exposed:

  • Tractor Supply Company (NASDAQ: TSCO)
  • Dicks Sporting Goods Inc (NYSE: DKS)
  • GNC Holdings Inc (NYSE: GNC)
  • TJX Companies Inc (NYSE: TJX)
  • Five Below Inc (NASDAQ: FIVE)
  • Bloomin’ Brands Inc (NASDAQ: BLMN)
  • Panera Bread Co (NASDAQ: PNRA)
  • Potbelly Corp (NASDAQ: PBPB)
  • Chico’s FAS, Inc. (NYSE: CHS)
  • Genesco Inc.(NYSE: GCO)
  • Childrens Place Inc (NASDAQ: PLCE)

Least exposed:

  • Advance Auto Parts, Inc. (NYSE: AAP)
  • Office Depot Inc (NASDAQ: ODP)
  • Best Buy Co Inc (NYSE: BBY)
  • SUPERVALU INC. (NYSE: SVU)
  • Sprouts Farmers Market Inc (NASDAQ: SFM)
  • Dollar Tree, Inc. (NASDAQ: DLTR)
  • Restaurant Brands International Inc (NYSE: QSR)
  • McDonald’s Corporation (NYSE: MCD)
  • Yum! Brands, Inc. (NYSE: YUM)
  • Gap Inc (NYSE: GPS)
  • Signet Jewelers Ltd. (NYSE: SIG)
  • L Brands Inc (NYSE: LB)
  • Ascena Retail Group Inc (NASDAQ: ASNA)

Disclosure: the author holds no position in the stocks mentioned.

Latest Ratings for AAP

DateFirmActionFromTo
Nov 2020Morgan StanleyMaintainsOverweight
Oct 2020Raymond JamesUpgradesMarket PerformOutperform
Oct 2020JP MorganUpgradesNeutralOverweight

View More Analyst Ratings for AAP
View the Latest Analyst Ratings

 

Related Articles (AAP + ASNA)

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Latest Ratings

StockFirmActionPT
RRGBMorgan StanleyMaintains21.0
RMRMorgan StanleyMaintains40.0
RGNXMorgan StanleyMaintains67.0
REGNMorgan StanleyMaintains553.0
PNCMorgan StanleyMaintains177.0
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