Overview

Evercore ISI released a research note identifying three off‑price retailers—Ross Stores Inc (NASDAQ:ROST), Burlington Stores Inc (NYSE:BURL) and The TJX Companies Inc (NYSE:TJX)—as its top picks for the second half of 2026. All three receive an Outperform rating and distinct price targets, reflecting the firm’s view that operational initiatives and comparable‑store dynamics could drive performance despite mixed market conditions.

Stock Picks and Targets

  • Ross Stores: Outperform rating with a $276 price target; recent price movement down 4.11%.
  • Burlington Stores: Outperform rating with a $400 price target; recent price movement down 3.11%.
  • TJX Companies: Outperform rating with a $175 price target; recent price movement down 0.83%.

Ross Stores Inc (ROST)

Evercore ISI’s top pick, Ross Stores, is expected to benefit from a suite of initiatives that are still in early stages, including expanded marketing, broader merchandising breadth, enhancements to the store experience, smarter labor allocation, and a vendor‑flywheel approach. The firm believes these actions could sequentially improve performance and potentially accelerate the company’s two‑year stacked same‑store sales growth in the second half of the year, even as third‑quarter comparable‑store comparisons become more challenging.

Burlington Stores Inc (BURL)

Burlington Stores remains in Evercore ISI’s Top 5 list with an Outperform rating and a $400 price target. The third quarter presents a comparatively easier set of peer comparisons for BURL, and consensus estimates suggest the two‑year same‑store sales stack may slow—a rarity among U.S. off‑price peers. Operational and localization upgrades are expected to provide support. The quarter also saw a structural lag in broader off‑price performance as Burlington reduced weather‑sensitive merchandise without fully replacing those sales, setting the stage for possible upside in the second half.

The TJX Companies Inc (TJX)

TJX retains an Outperform rating and a $175 price target. The firm notes that slower Marmaxx trends in the second quarter have fostered more cautious sentiment toward this bellwether retailer. Evercore ISI’s field work suggests any deceleration may be linked to merchandising issues, although TJX has not faced a significant merchandising problem in roughly ten years and historically resolves such issues quickly. If the company signals improving third‑quarter trends, Evercore ISI believes the risk‑reward profile improves, despite the currently unusually cautious market sentiment.