President Trump sent global financial markets tumbling down this week as he announced steep new tariffs on a whole bunch of countries, including a 34% duty on China and 20% on the EU.
Amidst the chaos, there are two US based retailers that actually stand to benefit from Trump’s trade policies: TJX and Ross Stores – according to Citi analyst Paul Lejuez.
Lejuez expects the aforementioned two retail stocks to outperform and end this year on a strong note.
Here’s why the Citi analyst is bullish on TJX and ROSS and what these two retailers have in stores for investors in 2025.
TJX Companies Inc (NYSE: TJX)
TJX shares have already rallied more than 10% over the past month, but the Citi analyst continues to see significant further upside in the discount retailer.
“Tariffs are likely to create significant disruption in the market, greatly increasing the availability of product available to off-pricers at attractive prices,” Paul Lejuez told clients in a research note.
Lejuez upgraded TJX stock this week to “buy” and raised his price target on it to $140 that indicates potential for another 12% upside from current levels.
The Citi analyst touted the retailer’s strong holiday season in his report, adding the momentum will likely continue as consumers trade down to discounters amidst fears of a recession ahead.
Additionally, TJX stock currently pays a dividend yield of 1.36% that makes it all the more attractive to own at current levels, especially if you’re betting on a slowdown in the back half of 2025.
Wall Street at large shares Paul Lejuez’s optimism on TJX Companies as evidenced in the analysts’ consensus “overweight” rating on the retail stock at the time of writing.
Ross Stores Inc (NASDAQ: ROST)
Citi is bullish on Ross shares amidst tariffs headwinds and the related concerns of a potential economic slowdown in the coming months for similar reasons as TJX Companies.
Plus, the American chain of discount department stores has lost more than 15% this year, which makes it relatively more attractive in terms of valuation as well.
“We view off-price as defensively positioned in the near term, but well-positioned for continued growth in the long-term as other retailers struggle and close stores,” he wrote in a report this week.
Paul Lejuez sees mounting challenges for retailers ahead, leading to potential store closures if tariffs weaken the overall consumer environment.
He raised ROST stock in his research note as well to “buy” and raised his price target to $146 that signals a well over 10% upside from current levels.
Much like TJX, Dublin-headquartered Ross Stores Inc also currently pays a dividend yield of 1.23% that makes it attractive for those interested in setting up a new source of passive income.
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