2 Inflation-Proof Stocks That Could Continue Winning in the Second Half of This Year, No Matter What Happens

While the Federal Reserve works out how to stop rampant inflation, consumers need to figure out how to make their dollars work harder for them at the store. In general, inflation works against retailers as shoppers pull back on spending, but some retailers actually benefit from it; off-price or discount retailers often report their best performance when everyone is looking for a deal.

That's why TJX Companies (NYSE: TJX) and Costco Wholesale (NASDAQ: COST) are some of the best stocks to own when times are tough. Here's why they can keep winning in the second half of the year.

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1. TJX Companies

TJX is the umbrella company for TJ Maxx, Marshalls, HomeGoods, and Sierra, as well as many international off-price retail chains. It buys overstock and post-season merchandise, and shoppers love its great prices year-round, as well as the treasure-hunt feel of the stores, which keep them coming back as new merchandise arrives. The company owns more than 5,000 stores in 10 countries and has six e-commerce sites, providing a diversified backdrop to drive sales.

High-inflation periods bring in extra business as shoppers have less to spend and want the most bang for their buck. While many retailers are feeling the pinch and reporting pressured sales, TJX has demonstrated healthy growth.

Sales were up 9% year over year in the 2027 fiscal first quarter (ended May 2), with comparable sales (comps) up 6%. Earnings per share (EPS) increased 29% to $1.29. All divisions had increased comps and transactions, and management raised full-year guidance.

CEO Ernie Herrman said, "Availability of quality, branded merchandise is outstanding." He expects the model to continue working for the foreseeable future and the company to capture market share long-term.

In previous challenging economies, TJX also outperformed, creating a hedge against the market, and TJX stock has outperformed the market over time. It also pays a growing dividend that yields 1% at the current price, providing another benefit for shareholders.

2. Costco

Costco is the ultimate inflation stock. Its rock-bottom prices attract high volume, driving increased sales, higher profits, strong renewal rates, and new members.

CEO Ron Vachris said, "Our goal is to be the first to lower prices and last to raise them." Costco is taking a preemptive approach, lowering prices on some staples, like eggs, to provide greater value for its members and anticipate lower prices.

Costco has been reporting its highest growth in years as customers flock to its warehouses. Sales increased 11.6% year over year in the 2026 fiscal third quarter (ended May 10), and comps were up 9.8%. E-commerce remains a standout growth driver, and digitally enabled sales rose 21.5% in the quarter. Despite higher costs, profitability remained strong, and EPS increased from $4.28 last year to $4.93 this year.

While higher oil prices have been negatively affecting many companies, Costco's lower gas prices are turning lemons into lemonade and bringing in new business. Since customers who fill up at its gas stations tend to spend more overall, this is another growth driver.

The best part is that Costco still has a long growth runway. It owns only 639 stores in the U.S. and isn't even in every state, and internationally, it's just getting started. Its long-term goal is to open 30 stores annually, and each of Costco's massive stores converts at high rates, providing a healthy path for long-term growth.

Costco stock also pays a growing dividend that yields 0.6% at the current price, and it's a forever stock that should keep winning this year and for the long term.

Jennifer Saibil has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale and TJX Companies. The Motley Fool has a disclosure policy.