The stock market is not merely a reflection of corporate health; it mirrors the pulse of society in a time of upheaval. The recent wave of volatility sparked by the Trump administration’s shifting tariff policies serves as a stark reminder of how external forces can shake investor confidence and impact major equity indices significantly. Investors are left scrambling, attempting to navigate through these uncharted waters. Yet amid this chaos lies an opportunity: identifying stocks backed by top Wall Street analysts, which have the potential to weather these immediate pressures while promising solid returns over the longer term. In this article, we will look into three unique stocks favored by market experts and how each of them can serve as a beacon for cautious investors in uncertain times.
Zscaler: The Cybersecurity Powerhouse
One standout in the tech sector is Zscaler (ZS), a firm that has carved its niche in the cloud-based cybersecurity space. The company’s Zero Trust Exchange platform is revolutionary in ensuring secure connections for users, devices, and applications, shielding them against cyber threats. With impending regulations on data protection and privacy looming, it’s no surprise that Zscaler is receiving attention from top analysts. TD Cowen’s Shaul Eyal reiterated a buy rating, attracting interest with a robust price target of $270.
The crux of Zscaler’s appeal is its phenomenal performance in fiscal Q2 2025, where it outperformed market expectations. Market dynamics are shifting rapidly thanks to the growing adoption of Zero Trust frameworks and artificial intelligence, creating fertile ground for Zscaler’s growth. Analysts have also noted the company’s impressive federal engagements, securing contracts with 14 out of 15 cabinet agencies, a clear indicator of its reliability and the rising demand for secure digital infrastructure in governance. The 25% year-over-year increase in clients yielding over $1 million in annual recurring revenue also signals positive momentum.
It’s crucial to recognize that in an age fraught with cyber threats, investing in companies committed to securing digital landscapes is not merely a financial decision; it’s an ethical imperative. In today’s increasingly networked world, the failures of security systems can have catastrophic implications—not just for businesses, but for governments and societies at large.
Costco: The Undervalued Retail Giant
Next on our radar is Costco Wholesale (COST), which has an uncanny ability to endure economic shifts due to its membership-based model. Despite mixed results announced for Q2 2025, with revenue exceeding expectations yet earnings slightly faltering, Costco represents a resilient option for investors. Analyst Corey Tarlowe from Jefferies remains optimistic, raising Costco’s price target from $1,145 to $1,180 following the release of the earnings report.
Costco’s unique positioning, especially its low exposure to recent tariff headaches, offers relative safety in turbulent times. Approximately one-third of its U.S. sales come from international sources, with less than half originating from tariff-impacted countries like China, Mexico, and Canada. In this context, it is commendable that Costco can contend with ongoing trade tensions, as companies that can successfully maneuver these waters will likely enjoy significant long-term growth. Furthermore, the company’s strength in private label products positions it advantageously against competitors who may struggle with rising costs.
So why should this retail titan pique your interest? In an era where shoppers are increasingly drawn to value and experience, Costco is not just a store; it’s a communal hub for bargain hunters. The expansion of its warehouse footprint and the resilience shown through its adjusted comparable sales growth of 8.3% highlight Costco’s enduring competitive edge within retail.
Karman Holdings: A Forward-Thinking Defense Player
Lastly, we turn to Karman Holdings (KRMN), a name less familiar but equally promising. Engaged in the defense and space systems sector, Karman offers a diverse product line, from payload systems to missile defense technologies. Recently initiated with a buy rating by Evercore’s Amit Daryanani and a target price of $38, Karman stands on the precipice of significant growth fueled by geopolitical realities.
The U.S. government’s renewed focus on missile defense, paired with the rising demand for launches and hypersonic technology, positions Karman perfectly for sustained expansion. As nations ramp up their defense budgets amidst geopolitical tensions, investors must recognize the strategic importance of defense contractors like Karman, particularly those capable of addressing a spectrum of security concerns. Analysts project KRMN’s sales to jump by 18% in fiscal 2025, a telltale sign of a company poised to thrive in a rapidly evolving landscape.
It’s worth noting that companies operating in the defense sector have a unique responsibility to contribute positively to national security while ensuring ethical standards are upheld. As the geopolitical climate becomes ever more unpredictable, Karman’s role may only amplify, making it a compelling choice for investor portfolios wishing to support critical industries.
By monitoring these stocks—Zscaler, Costco, and Karman Holdings—in your portfolio strategies, you may find a way to thrive even amid market upheaval.