- Investors facing market volatility from Trump administration tariffs can rely on the following top analyst picks – Zscaler (ZS), Costco Wholesale (COST), and Karman Holdings (KRMN) – for long-term returns.
- These companies are highlighted by the TipRanks platform for their innovation, stability, and growth potential, standing out amidst a turbulent week where major averages ended with losses despite a late rally.
Investors navigating the unpredictable waves of the market, particularly amidst the recent tariff-related turbulence under the Trump administration, can find solace in the stock selections of Wall Street’s most astute analysts, as identified by TipRanks (TR), a platform known for its rigorous evaluation of analyst performance. With the major averages shaken but rallying late this week – albeit closing with losses – three companies stand out as resilient picks capable of delivering robust long-term returns: Zscaler (ZS), Costco Wholesale (COST), and Karman Holdings (KRMN). These stocks, backed by top-tier analysts, offer a blend of innovation, stability, and growth potential that can fortify portfolios against near-term volatility.
Zscaler, a leader in cloud-based cybersecurity, has emerged as a standout performer, bolstered by its Zero Trust Exchange platform, which safeguards users, devices, and applications from escalating cyber threats. The company’s second-quarter results for fiscal 2025 exceeded market expectations, driven by heightened adoption of Zero Trust architecture and artificial intelligence. TD Cowen analyst Shaul Eyal, ranked No. 18 out of over 9,400 analysts on TR with a 65% success rate and an average return of 23.9%, reaffirmed his ‘Buy’ rating with a $270 price target. He emphasized the company’s revamped go-to-market strategy, which has reduced sales attrition for two consecutive quarters and boosted productivity, with further gains anticipated in the latter half of fiscal 2025. Eyal also pointed to the near doubling of annual contract value in Zscaler’s AI Analytics portfolio, underscoring the pivotal role of AI in fueling demand. The company’s federal business is another bright spot, serving 14 of 15 U.S. cabinet agencies and poised to capitalize on cost-saving initiatives like Elon Musk’s proposed Department of Government Efficiency. With 620 customers now generating over $1 million in annual recurring revenue – a 25% year-over-year increase – and a target of $3 billion in annual recurring revenue by fiscal 2025’s end, Zscaler’s trajectory reflects both organic growth and strategic acquisitions, cementing its position in the cybersecurity landscape.
Zscaler shares closed on Friday at $197.81, with the company’s market cap standing at $30.61 billion.
Meanwhile, Costco Wholesale, the membership-only warehouse giant, presents a different but equally compelling case. Its second-quarter fiscal 2025 results revealed a mixed picture: revenues beat forecasts thanks to an 8.3% adjusted comparable sales growth, yet earnings fell short due to a slimmer-than-expected gross margin, compounded by forex pressures. Jefferies analyst Corey Tarlowe, ranked No. 664 on TR with a 55% success rate and an 11.4% average return, raised his price target to $1,180 from $1,145 while maintaining a ‘Buy’ rating. He praised Costco’s resilience, evidenced by strong U.S. comparable sales driven by increased traffic and ticket growth, particularly in non-food categories. Tarlowe also noted the company’s limited exposure to the Trump administration’s tariffs, with only about one-third of U.S. sales tied to imports—less than half of which originate from China, Mexico, and Canada. Costco’s scale and significant private-label penetration, he argued, provide a buffer against tariff-related headwinds, while its potential for further warehouse expansion signals enduring growth prospects.
Costco shares ended Friday’s trading session at $903.92, bringing the company’s market cap to $401.25 billion.
Karman Holdings, a newly public entity in the defense and space systems sector, rounds out this trio with a forward-looking growth narrative. Evercore analyst Amit Daryanani initiated coverage with a ‘Buy’ rating and a $38 price target, citing Karman’s alignment with powerful secular trends. The company’s portfolio – spanning payload systems, aerodynamic interstage solutions, and propulsion technologies – caters to every U.S. launch provider, capitalizing on rising orbital launch volumes. Daryanani also highlighted the U.S. and NATO’s focus on missile defense and hypersonics, alongside multi-year restocking efforts for missile inventories, as key drivers. He projects fiscal 2025 sales of $409 million, an 18% year-over-year increase, with earnings per share at 36 cents and a 100 basis-point EBITDA margin expansion to 31%. Karman’s unique positioning across high-growth military and space markets, Daryanani contends, sets the stage for sustained mid-to-high teens growth.
Karman Holdings stock closed Friday at $33.16. After-hours trading saw the $4.38 billion market cap company decline by 1.93%, ending at $32.52
These selections from TR underscore a broader truth: in a market rattled by policy shifts and economic uncertainty, stocks underpinned by strong fundamentals and expert endorsement can offer stability and upside. Zscaler’s technological edge, Costco’s operational strength, and Karman’s strategic relevance to defense and space innovation collectively illustrate how targeted investments can weather volatility. The increasing reliance on cybersecurity amid digital transformation, the enduring appeal of value-driven retail models, and the geopolitical impetus for defense spending align with broader economic currents, suggesting these stocks are not just timely picks but durable ones. For investors, these insights from TR’s top analysts could provide a roadmap to navigate the present while building for the future.
Disclaimer: The information provided is for educational and informational purposes only and should not be construed as financial, investment, or trading advice. Stocks and cryptocurrencies are highly volatile and involve significant risk, including the potential loss of principal. Past performance is not indicative of future results. Always conduct your own research and consult with a qualified financial advisor before making any investment decisions. Neither the author nor the publisher is responsible for any financial losses or gains that may result from your actions..
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