Investors should consider owning TJX Companies Inc (NYSE: TJX) on the recent pullback as the discount retailer stands to benefit from Trump tariffs, according to analysts at UBS.
The investment firm expects TJX to tap on its network of more than 21,000 vendors worldwide to navigate higher tariffs on the likes of Canada, Mexico, and China.
UBS went on to call TJX a “growth stock” in its recent note, adding its uniquely positioned to keep prices lower at a time when other retailers, including giants like Walmart and Best Buy are warning of weakness ahead.
Over the medium to long term, that will “drive incremental market share gains” for TJX stock, the analysts added.
UBS dubs TJX stock a ‘high-conviction buy idea’
UBS expects the brunt of higher levies to fall on vendors and manufacturers and not on TJX.
In its research note, the investment firm dubbed TJX stock a “high-conviction buy idea” with upside to $158, which translates to a more than 30% upside from current levels.
Additionally, its analysts expect the company’s relatively newer businesses, including Sierra (online activewear retailer) and HomeSense (home furnishing chain) to drive significant upside moving forward.
Note that TJX is a dividend stock that currently yields 1.26%, making it all the more exciting to own in 2025.
Jim Cramer agrees with UBS on TJX stock
UBS also expects the discount retailer’s plans of international expansion to unlock meaningful upside in its share price this year.
TJX is fully committed to reaching 7,000 locations in total to better rival its larger peers.
TJX International currently makes up over 12% of the company’s overall revenue while Canada drives another 9.0%.
The investment firm sees TJX growing its per-share earnings at a compound annualised rate of 11.5% over the next five years.
Other notable names that are bullish on TJX stock include famed investor Jim Cramer, who said “I’d be a buyer of TJX aggressively if I didn’t own it,” in his recent update to members of his Investing Club.
TJX guided for some weakness in fiscal 2026
In February, the New York listed firm reported a strong fourth quarter but cited currency headwinds as it guided for some weakness ahead in its fiscal 2026.
But the company’s future outlook failed to rattle Cramer as TJX has a history of underpromising and overdelivering, he told his followers last week.
Note that Ernie Herrman, the chief executive of TJX Companies, himself expects higher tariffs, lower consumer confidence, and persistent inflation to be a boon for the off-price department store.
“The silver lining is, with consumer confidence down, and a rocky environment out there, there’s more availability out there over the next six months … I’m excited about the sales and margin opportunity in this environment,” he told analysts on the earnings call last month.
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