Stocks That Are ‘More Insulated’ From Trump’s Tariffs Than Their Peers, According to Morgan Stanley

Morgan Stanley has identified stocks that could be less vulnerable to the Trump administration's upcoming tariffs, which are set to take effect on Tuesday. These tariffs target imports from Canada, China, and Mexico, and while Commerce Secretary Howard Lutnick recently suggested that duties on Mexican and Canadian goods might be lower than the 25% rate initially proposed, the uncertainty surrounding these measures has pressured the market. In February, the S&P 500 fell by over 1%.

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Morgan Stanley’s equity strategist Michael Wilson believes that tariffs will drive sector rotation rather than affect the entire market. However, he noted that broader-reaching tariffs beyond China—especially if they involve higher rates and are prolonged—could have a larger impact on stock performance.

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In response to these potential risks, Morgan Stanley analyzed the market to identify value stocks that could still deliver growth while being less exposed to the new tariff structure. These companies are considered to be more insulated due to their pricing power and market share. Here are some of the stocks that made Morgan Stanley’s list:

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Stocks More Insulated from Trump’s Tariffs

• Ulta Beauty (ULTA): Down 1.67%
• Albertsons Companies (ACI): Down 2.09%
• Dexcom (DXCM): Down 0.98%
• BJ’s Wholesale Club (BJ): Up 0.11%
• Kroger (KR): Down 2.1%
• Dollar General (DG): Down 0.82%
• Nutanix (NTNX): Up 3.5%
• Keysight Technologies (KEYS): Up 0.31%
• Five9 (FIVN): Down 1.54%
• Vail Resorts (MTN): Up 0.97%
• Planet Fitness (PLNT): Up 1.8%
• Life Time Group Holdings (LTH): Up 1.74%
• IBM (IBM): Up 0.19%
• United Rentals (URI): Down 0.59%
• Tapestry (TPR): Up 0.49%
• Levi Strauss (LEVI): Down 0.72%

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Ulta Beauty’s Resilience Amid Market Pressure

Ulta Beauty was one of the notable names on the list despite its stock declining over 16% in 2025. However, analysts surveyed by FactSet believe the stock still has significant upside potential, with a forecast of 28% growth from its current levels.

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In January, Morgan Stanley upgraded Ulta’s stock. Analyst Simeon Gutman highlighted the company’s strong business model within the beauty industry, which continues to show robust growth. Gutman believes Ulta’s revenue will grow alongside the expanding beauty sector, reinforcing its long-term durability.

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Levi Strauss: Potential Despite Challenges

Levi Strauss also made Morgan Stanley’s list, with the stock rising more than 3% in 2025. In January, Levi reported better-than-expected fourth-quarter earnings but issued weaker guidance moving forward. The company cited concerns about the strengthening U.S. dollar, which could negatively impact future sales.

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Morgan Stanley currently has an equal-weight rating on Levi Strauss, but analysts at FactSet project nearly 20% upside for the stock.

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Earlier this year, Barclays analyst Paul Kearney initiated Levi with an overweight rating, expressing optimism despite certain risks. Kearney highlighted opportunities for growth, particularly in addressing market share losses in men’s bottoms and improving the company’s direct-to-consumer operations.

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He also pointed to the potential for better merchandising and operational enhancements as Levi continues to invest in its supply chain and product offerings.

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Other Notable Stocks on Morgan Stanley’s List

In addition to Ulta Beauty and Levi Strauss, other companies that Morgan Stanley views as more insulated from tariffs include Dollar General and Planet Fitness.

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Dollar General benefits from its position as a discount retailer, which allows it to maintain strong pricing power and cater to value-conscious consumers. This pricing flexibility makes it less vulnerable to the rising costs associated with tariffs.

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Planet Fitness also stands out due to its affordable gym memberships and expanding footprint. The company’s business model relies on subscription revenue, which offers stability in the face of potential economic pressures from tariffs.

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As the Trump administration’s tariffs approach, Morgan Stanley’s research highlights companies that are better positioned to withstand the potential impact. Stocks like Ulta Beauty, Levi Strauss, Dollar General, and Planet Fitness have demonstrated resilience due to their pricing power, market share, and business models.

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While the broader market faces uncertainty, these companies may offer investors a buffer against tariff-related volatility. Morgan Stanley’s analysis suggests that sector rotation—rather than broad market declines—will likely define the stock market’s response to the new tariffs.

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