Morgan Stanley has identified certain stocks that could potentially be shielded from the impact of the upcoming tariffs imposed by the Trump administration. With levies on imports from Canada, China, and Mexico about to go into effect, the market has been grappling with uncertainty. Despite recent statements from Commerce Secretary Howard Lutnick hinting at potentially lower duties on Mexican and Canadian products, the looming tariffs have cast a shadow over market sentiment, leading to a decline in the S & P 500 in February.
Morgan Stanley's equity strategist Michael Wilson views tariffs as a factor that could drive rotation in the market rather than impacting the entire index. The focus is on identifying value stocks that possess the resilience to navigate the new tariff landscape due to factors such as pricing power and market share.
Uncertainty Looms Over Market Due to Tariff Announcement
In conclusion, Morgan Stanley's selective approach in identifying stocks that exhibit resilience and growth potential amidst tariff uncertainties underscores the importance of strategic investment decisions in navigating the evolving market conditions.
Morgan Stanley has identified several stocks that could potentially be shielded from the impact of the upcoming tariffs imposed by the Trump administration. These tariffs, targeting imports from Canada, China, and Mexico, are scheduled to come into effect soon.
Commerce Secretary Howard Lutnick hinted at the possibility of lower duties on Mexican and Canadian products compared to the initially proposed 25% tariff. However, the uncertainty surrounding the final decision has created unease in the market.
Tariffs as a Rotational Driver in the Market
Another company on Morgan Stanley's radar is apparel giant Levi Strauss, which has seen a modest uptick in its stock performance in 2025. While the company reported strong fourth-quarter results, it issued cautious guidance citing a potentially challenging sales environment due to a strengthening U.S. dollar. Barclays analyst Paul Kearney sees opportunities for Levi Strauss in addressing market share loss and enhancing operational capabilities.
Additionally, discount retailer Dollar General and gym chain Planet Fitness are among the names that made Morgan Stanley's list of stocks that could weather the impact of the tariffs. These companies are seen as having the resilience to navigate through the uncertainties posed by the new tariff landscape.
Stocks Highlighted by Morgan Stanley
Looking ahead, Morgan Stanley's equity strategist Michael Wilson views tariffs as more of a rotational driver rather than a broad index-centric one. In light of this, the investment firm has sifted through the market to pinpoint value stocks that possess the potential for growth and are relatively insulated under the new tariff regime due to their pricing power and market share dynamics.
Among the companies identified by Morgan Stanley, Ulta Beauty stands out. Despite a 16% pullback in 2025, analysts project over 28% upside for the stock. Ulta Beauty, which was also upgraded by Morgan Stanley in January, is seen as a robust and enduring business within the beauty industry.
One of the stocks identified by Morgan Stanley is Ulta Beauty, which has experienced a slight pullback in 2025. Analysts foresee a significant upside potential for the stock, reflecting confidence in its growth trajectory.
Levi Strauss Positioned for Growth Amid Tariff Concerns
Levi Strauss, an apparel company, has also been flagged by Morgan Stanley as a stock worth considering. Despite concerns about the impact of tariffs and a strong U.S. dollar, the company's performance in the fourth quarter exceeded expectations, hinting at future resilience.
Analysts' Views on Levi Strauss
While Morgan Stanley maintains an equal weight rating on Levi Strauss, the consensus price target indicates a promising upside. Analysts believe that the company has the potential to address challenges and capitalize on opportunities in the market.
Additional Stocks in Focus
Other companies highlighted by Morgan Stanley include Dollar General, a discount retailer, and Planet Fitness, a popular gym chain. These firms have been singled out for their potential to weather the storm of tariffs and continue on a growth trajectory.
