Investors are weathering a storm of volatility in today’s financial markets. With the Trump administration’s shifting tariff rhetoric stirring uncertainty, the market has reacted with palpable unease. Traders may be experiencing a rollercoaster of emotions as weekend rallies momentarily lift spirits, only to be followed by inevitable corrections. In a climate where unpredictability looms large, the focus should be on identifying resilient stocks that can endure the current pressures and flip the script for long-term successes.
This week, we delve into three stocks—Zscaler, Costco Wholesale, and Karman Holdings—carefully selected based on the insights of Wall Street’s top analysts. Each offers a unique proposition that could make it a solid addition to an investor’s portfolio, especially in a time marked by instability.
Zscaler: A Cybersecurity Titan in a Data-Driven World
In an era where digital networks have become central to business operations, Zscaler (ZS) emerges as a beacon of hope in the cybersecurity landscape. With their innovative Zero Trust Exchange platform, Zscaler safeguards users, devices, and applications from sophisticated cyber threats. Following a robust second quarter of fiscal 2025, the company’s financial prowess is clear, driven by a growing demand for Zero Trust models and artificial intelligence integration.
Analyst Shaul Eyal from TD Cowen has taken a bullish stance on Zscaler, maintaining a buy rating with a target price of $270. His analysis reveals a vibrant narrative: improvements in sales productivity and a strategic go-to-market overhaul have translated into solid results. Even more impressive is the company’s foray into federal government contracts, successfully servicing 14 of the 15 U.S. cabinet agencies—a noteworthy validation of their offerings in the face of looming governmental efficiency drives led by figures like Elon Musk.
Zscaler’s potentially lucrative trajectory, with expectations of achieving $3 billion in annual recurring revenue, stands out amid market turbulence. With a growing customer base and a strong commitment to organic and acquisition-led growth, Zscaler represents not just a stock but a foundational element in the evolving battlefield of cybersecurity.
Costco Wholesale: A Fortress Against Economic Winds
Next on our radar is Costco Wholesale (COST), the membership-only retail giant that has demonstrated remarkable resilience, even as the economic landscape faces headwinds. Despite posting mixed results in its latest fiscal quarter, the surrogate strength in comparable sales growth brings a sense of stability. Analyst Corey Tarlowe points to an adjusted growth rate of 8.3% in comparable sales, demonstrating that Costco isn’t merely hanging on—it is thriving where many other retailers falter.
What’s particularly compelling about Costco’s situation is its relatively low exposure to tariffs that have rattled the broader retail landscape. With one-third of its U.S. sales stemming from imports, and less than half from countries like China, Mexico, and Canada, Costco seems insulated from the ongoing trade skirmishes. This aligns interestingly with Tarlowe’s bullish outlook, as he still raised his price target for Costco, reflecting growing confidence in the company.
The retailer’s unique ability to navigate inflationary pressures while bolstering its membership base illustrates a strategic advantage that could lead to sustained long-term growth. Costco stands as a haven for consumers seeking value and reliability, and their business model speaks to the potential for stability during tumultuous times.
Karman Holdings: A Rising Star in Defense and Space
Last but not least is Karman Holdings (KRMN), a newcomer in the defense and space sectors that’s already capturing the attention of investors. With a robust array of products designed for the rapidly evolving technological landscape—particularly in missile defense and launch systems—Karman is poised to capitalize on several macroeconomic trends driving growth.
Amit Daryanani from Evercore has kicked off coverage of Karman with a strong buy rating and a target price of $38, underscoring the company’s potential in a sector that continues to evolve in response to geopolitical dynamics. The increasing focus on missile defense and space exploration presents Karman with a unique opportunity, as they align their offerings with U.S. government demand and NATO restocking initiatives.
Daryanani’s optimism is evident in his forecasts, projecting substantial sales growth for fiscal 2025, with most estimates signaling an uptick in earnings as well. Positioned strategically at the intersection of defense needs and space innovation, Karman Holdings represents a compelling investment for those looking to engage with a future marked by both challenges and opportunities in national security.
The current market may be in flux, but the stocks highlighted here—Zscaler, Costco, and Karman—illustrate that there are still gems to be uncovered. Each offers a unique defensive mechanism against the chaotic winds of the marketplace, making them worthy of consideration for forward-thinking investors.