The world of investing can often feel like a chaotic dance—the ebbs and flows of market sentiment swinging investors like a pendulum caught in a storm. This volatility leaves many investors frazzled, questioning their strategic approaches. However, amidst the noise of uncertain trading weeks accentuated by tariff conversations from high-profile figures like the Trump administration, some market analysts continue to spotlight resilient stocks worth consideration for savvy portfolio adjustments. Below, we dive into three compelling stock picks backed by trusted analysts, showcasing their merits and potential for future returns.
Zscaler: A Cybersecurity Titan with Strategic Momentum
First on the radar is Zscaler (ZS), a cloud-based cybersecurity company revolutionizing digital security with its Zero Trust Exchange platform. This crucial technology connects users and applications securely, making it a formidable player in the face of mounting cyber threats. Recently, Zscaler’s performance dazzled market observers, largely due to its increasing traction in the Zero Trust realm and the infusion of artificial intelligence into its offerings.
Analyst Shaul Eyal from TD Cowen has fervently endorsed Zscaler, reiterating a “buy” rating with a bold price target of $270. What’s noteworthy is the compounded growth being observed, spurred by Zscaler’s improved go-to-market strategies and a significant uptick in sales productivity—setting the stage for a stronger second half of fiscal 2025. Eyal deftly points out the company’s foray into federal government contracts, receiving accolades for serving a majority of U.S. cabinet agencies. Such a move positions Zscaler at the forefront of government efficiency projects endorsed by influential decision-makers like Elon Musk.
Strikingly, Zscaler’s projections indicate a path to an impressive $3 billion in annual recurring revenue by the close of fiscal 2025, revealing robust underlying momentum that distinguishes it from other tech underdogs. With an increase of 25% in high-value customer acquisitions year-over-year, Zscaler isn’t just riding the cybersecurity wave; it’s defining it.
Costco: Steadfast Growth Amidst Economic Disruption
Next, we shift our focus to Costco Wholesale (COST), a membership-based retail chain known not only for its bulk sales but also for its remarkable resilience in challenging economic landscapes. Following the release of their second-quarter fiscal 2025 results, which reflected mixed findings, analyst Corey Tarlowe from Jefferies emphasized Costco’s strong comparable sales growth—which soared to 8.3% despite headwinds that plagued many competitors.
While a slight earnings miss raised eyebrows, Tarlowe’s analysis puts forth a compelling narrative: Costco’s business model is well-equipped to weather the tempest of external challenges, including fluctuating foreign exchange rates and evolving tariff structures. Importantly, Tarlowe assures investors that approximately one-third of Costco’s sales come from imports, with less than fifty percent deriving from countries like China, Mexico, and Canada that are currently entangled in tariff disputes.
It’s this unique positioning—fueled by a robust customer base and a growing warehouse footprint—that elevates Costco in potential investor portfolios, despite the cloudy economic outlook. Tarlowe maintains a buy rating and has elevated Costco’s price target, indicating confidence in its long-term prospects.
Karman Holdings: Emerging as a Defense Powerhouse
Completing this week’s top selections is Karman Holdings (KRMN)—a budding defense and space systems firm recently making waves in the public markets. With a diversified product portfolio that resonates with current global defense needs, Karman stands to benefit immensely from heightened military expenditure and a focus on missile defense initiatives both domestically and internationally.
Analyst Amit Daryanani from Evercore has placed a “buy” rating on Karman, setting a price target of $38—an optimistic outlook amid rising tensions that invariably heighten defense budgets. With expectations of an 18% rise in fiscal 2025 sales, Karman appears well-positioned to embrace and capitalize on ongoing investments in national security. The company caters to every major U.S. launch provider, an auspicious position as U.S. orbital launch volumes burgeon.
Moreover, Daryanani hints at Karman’s solid growth trajectory, spurred by multiple tailwinds, such as ongoing restocking of military inventories among NATO allies. With an expected expansion in EBITDA margins, Karman presents an enticing opportunity for investors seeking exposure to the burgeoning defense sector.
Despite a backdrop of volatility and uncertainty, these three stocks showcase the unwavering potential to be significant players in their respective domains. Investors willing to look beyond the market fray may discover in Zscaler, Costco, and Karman holdings a slate of resilient options that reflect both strength and foresight in turbulent times.