In an increasingly volatile investment landscape, where market sentiment shifts as readily as political rhetoric, identifying stocks that can weather short-term storms becomes paramount. This week, as the market reeled from tariff discussions stemming from the Trump administration, investors are seeking insights from top analysts to bolster their portfolios and navigate the tumultuous terrain ahead. This article highlights three stocks that have garnered positive attention from Wall Street, offering potential refuge amid chaos.
Zscaler: A Cybersecurity Powerhouse Preparing for Revenue Growth
One of the standout picks this week is Zscaler (ZS), a cloud-based cybersecurity firm making waves with its innovative Zero Trust Exchange platform. This technology has established itself as a bastion against cyber threats, empowering organizations to safeguard sensitive data across various environments. What makes Zscaler a compelling choice right now is not just its impressive fiscal 2025 results—exceeding market expectations—but the broader trend towards increased digital security fortification fueled by the adoption of artificial intelligence.
TD Cowen analyst Shaul Eyal has reiterated a buy rating, projecting a target price of $270. Eyal’s confidence is rooted in Zscaler’s effective go-to-market strategy and a noteworthy reduction in sales attrition for the second quarter in a row. Furthermore, as demand for artificial intelligence solutions surges, Zscaler is poised to capture this market, with its AI Analytics portfolio showing a staggering year-over-year contract value increase. The company projects achieving $3 billion in annual recurring revenue by fiscal year-end 2025, demonstrating a well-aligned growth trajectory in an increasingly digital world.
Moreover, Zscaler’s relationships within government sectors can’t be ignored; serving 14 out of 15 U.S. cabinet agencies positions them uniquely to capitalize on new efficiencies in governance, potentially benefitting from initiatives aimed at enhancing operational efficacy. Eyal identifies a growing cohort of high-value customers, configured to escalate Zscaler’s market influence. In a time rife with cybersecurity breaches, Zscaler’s focus on resilience makes it an attractive investment.
Costco: Resilience in Retail Through Strategic Operations
Next up is Costco Wholesale (COST), the membership-only warehouse giant that continues to appeal to consumers even amidst economic fluctuations. Recently reporting a mixed bag for fiscal 2025 second-quarter, Costco’s revenue exceeded expectations but earnings fell short due to gross margin pressures and multiple external factors, including currency fluctuations. Nevertheless, analyst Corey Tarlowe from Jefferies maintains a buy rating, now with a raised price target of $1,180, emphasizing the retailer’s innate competitive edge.
Despite adversity faced by other retailers, Costco’s stellar performance—attaining an adjusted comparable sales growth of 8.3%—demonstrates its operational robustness. The increase in membership fees and ascending foot traffic signals that Costco is not merely weathering the storm but is effectively navigating it. Tarlowe posits that the company’s limited exposure to recent tariffs will serve to enhance its competitive standing. With foreign imports accounting for only a third of U.S. sales and less than half from the most affected trade partners, Costco is well-positioned to insulate itself from potential price hikes that could batter competitors.
The combination of strong brand loyalty, a focus on private labels, and expansion opportunities positions Costco as a stalwart even as storm clouds gather on the economic horizon.
Karman Holdings: Defense Sector Growth in Uncertain Times
Lastly, Karman Holdings (KRMN) emerges as a significant contender, particularly in the defense and aerospace sectors. With its recent public offering, the company stands to gain significantly from current geopolitical climates promoting heightened defense spending. Evercore analyst Amit Daryanani has initiated coverage with a buy recommendation and a price target set at $38. The catalyst for Daryanani’s bullish outlook lies in Karman’s diverse offering portfolio, which spans critical components for modern defense systems.
As the world sees escalated interests in missile defense and hypersonic technology, Karman holds the potential to ride the wave of strong U.S. orbital launch demand, selling essential products across all U.S. launch providers. There also lies an opportunity in the ongoing restocking of military inventories as nations speed up defense preparedness. Daryanani predicts an impressive 18% year-over-year growth in Karman’s fiscal year 2025 sales, which would translate into strong earnings momentum and an expanded EBITDA margin.
Karman’s alignment with current and future defense needs positions it uniquely in a growth sector that is not merely resilient but is poised for robust expansion as global tensions rise and defense spending increases.
Investors grappling with the tide of uncertainty can find solace in these stocks, each offering distinctive value propositions amidst a tumultuous economic landscape. Aligning with these industry frontrunners may very well prove prudent as we embrace a future fraught with challenges yet also ripe with opportunity.