The world of investing frequently resembles a turbulent sea, filled with unpredictable waves brought on by political machinations, market shifts, and economic undercurrents. Recently, the United States has witnessed a particularly volatile environment, catalyzed by the Trump administration’s persistent tariff rhetoric. Investors have keenly felt the repercussions, with major index averages fluctuating wildly and ultimately closing the week with losses. In such climate, discerning investors would be wise to identify stocks that promise resilience and long-term growth beyond the immediate choppy waters. Presented here are three well-regarded stocks favored by seasoned Wall Street analysts that may prove invaluable for investors aiming to safeguard their portfolios while capitalizing on future growth.
Zscaler (ZS): A Beacon in Cybersecurity
In today’s hyper-connected landscape, cybersecurity is far more than a buzzword; it’s a necessity. At the forefront of this digital defense is Zscaler, a cloud-based cybersecurity firm whose core offering, the Zero Trust Exchange, has rapidly gained traction. This platform not only secures users and applications from the deluge of cyberattacks but also shields businesses from the potential fallout of data breaches.
Recently, Zscaler reported outstanding results for the second quarter of fiscal 2025. The company’s performance—underpinned by an increasing shift toward Zero Trust models and artificial intelligence—has caught the attention of many, including TD Cowen’s analyst, Shaul Eyal. He commended Zscaler’s enhanced market strategy and growing sales productivity, recommending a buy with an ambitious price target of $270. Such projections rest on solid foundations: a customer base that has expanded by 25% year-over-year among high-value clients and a burgeoning annual recurring revenue (ARR) goal of $3 billion by the fiscal year’s end.
The potential benefits of Zscaler extend beyond just financial metrics. The company is deeply entrenched in federal contracts and poised to profit from initiatives aimed at increasing government efficiency. In a world where cybersecurity threats loom larger every day, Zscaler emerges not merely as a stock but as a critical partner in safeguarding digital assets.
Costco Wholesale (COST): The Resilient Retailer
When retail behemoths falter, Costco proves once again that it thrives, even amid economic uncertainty. The company’s recent quarterly report manifested mixed results: while its revenues exceeded expectations, its profits fell just short. Jefferies analyst Corey Tarlowe dissected this outcome, attributing the earnings miss to factors like foreign exchange headwinds rather than deficiencies inherent in Costco’s business model.
Despite the challenges distorting the results, Costco showed remarkable strength in its comparable sales, boasting an impressive growth rate of 8.3%. Tarlowe recognized the retailer’s resilience, particularly through strong metrics in non-food product categories and reinforced membership growth. With robust traffic and average ticket size increases, Costco places itself in an enviable position.
Moreover, Costco’s somewhat insulated exposure to proposed tariffs further solidifies its attractiveness. With around a third of its U.S. sales sourced from international markets—less than half of which comes from the usual suspects like China, Mexico, and Canada—the company emerges as a stable investment amid potential turbulence as tariffs come into play. Tarlowe’s renewed buy rating with a revised price target of $1,180 illustrates strong confidence in Costco’s fundamentals.
Karman Holdings (KRMN): A Rising Star in Defense and Space
As global defense concerns heighten, the spotlight on aerospace and defense industries brightens. Enter Karman Holdings, a relatively new player thriving amidst an evolving landscape dominated by urgency for robust defense strategies. The company specializes in critical systems for payload protection, missile defense, and propulsion. Evercore analyst Amit Daryanani recently initiated coverage on Karman with an affirmative buy rating, highlighting its steep growth potential shaped by burgeoning demand in the U.S. for missile defense and an expanding nuclear arsenal.
Karman’s trajectory appears promising, fueled by the increasing necessity for robust defense mechanisms across NATO and U.S. military sectors. Daryanani anticipates Karman’s fiscal 2025 sales growth to surge by 18% to reach $409 million. Given this upward trajectory and the anticipated expansion of EBITDA margins, investors looking into the military and aerospace sectors may find Karman Holdings to be a compelling inclusion in their portfolios.
Though the markets may appear tumultuous, investments like Zscaler, Costco, and Karman reflect sectors poised for growth. Each of these companies presents a unique opportunity for savvy investors who are willing to navigate these turbulent waters—armed with the insight and analysis to make informed decisions. Amidst uncertainty, the potential for substantial returns beckons, provided one chooses wisely.