This week, President Trump brought the global financial markets to a halt when he announced new steep tariffs against a number of countries. These included a duty of 34% on China and a 20% tax on EU.
According to Citi analyst Paul Lejuez, despite the turmoil there are actually two US-based retailers who stand to benefit from Trump’s trade policies. These include TJX Stores and Ross Stores.
Lejuez believes that the two stocks mentioned above will outperform this year and finish it on a high note.
What investors can expect from TJX & ROSS in 2025, according to Citi’s analyst.
TJX Companies Inc. (NYSE: TJX).
TJX has already seen its shares rise more than 10% in the last month. However, Citi analysts continue to believe that the discount retailer will see further gains.
In a client research note, Paul Lejuez said that “Tariffs will likely create a significant disruption on the market and greatly increase the availability of products available at off-price prices.”
Lejuez raised the price target for TJX to $140, which indicates a potential 12% increase from its current level.
Citi’s analyst praised the retailers strong holiday sales in his report. He added that the momentum would likely continue, as shoppers will be more inclined to shop at discounters amid fears of an impending recession.
TJX’s stock also pays a current dividend yield of 1.36 percent, which makes it even more appealing to buy at its current price, particularly if you are betting on the slowdown of the economy in the second half of 2025.
The Wall Street as a whole shares Paul Lejuez’s optimism about TJX Companies, which is evidenced by the consensus analysts’ “overweight rating” on the retailer’s stock.
Ross Stores Inc. (NASDAQ: ROST).
Citi has a bullish outlook on Ross’s shares, despite tariffs concerns and the related fears of an economic slowdown that could occur in the next few months. This is similar to TJX Companies.
The American discount chain has also lost over 15% in value this year.
In a recent report, he said: “We see off-price retailers as being defensively placed in the short term but that they are well-positioned to continue growing in the longer-term while other retailers struggle or close their stores.”
Paul Lejuez believes that retailers will face increasing challenges in the future, which could lead to store closings.
In his research note, he also raised ROST to “buy”, and increased his price target from $146 to $146, which represents a significant increase of over 10% compared to current levels.
Like TJX Ross Stores Inc, headquartered in Dublin pays out a current dividend yield of 1.23 percent. This makes the company attractive to those looking for a passive source of income.
As new information becomes available, this post may change.
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