Top 3 Stocks Wall Street Analysts Are Bullish On: Zscaler, Costco, Karman Holdings

In an environment characterized by market turbulence and shifting global dynamics, investors continue to hunt for long-term growth opportunities that can weather short-term challenges. Amid ongoing uncertainties stemming from trade tensions and market fluctuations, leading Wall Street analysts have spotlighted three stocks that boast solid business fundamentals and growth potential over the long haul.

Zscaler: Advancing Cloud Cybersecurity with Artificial Intelligence

Zscaler is emerging as a front-runner in the cybersecurity arena through its innovative cloud-based security platform. With its Zero Trust Exchange approach, the company provides robust protection by ensuring that all users, devices, and applications adhere to strict security protocols. In its most recent quarterly report, Zscaler exceeded market forecasts, largely due to the increasing adoption of its Zero Trust model and artificial intelligence technologies. The company projects reaching $3 billion in annual recurring revenue by the close of the fiscal year 2025.

“Improvements in sales retention and an enhanced commercial strategy are significantly boosting productivity at Zscaler.”

— Shaul Eyal, TD Cowen

Analyst Shaul Eyal, highly ranked among more than 9,400 experts according to TipRanks, maintains a buy stance on Zscaler’s shares and has set a target price of $270. His analysis highlights the company’s strategic positioning and its ability to leverage AI for pioneering cybersecurity measures.

Costco: Strength and Stability in Retail

Costco continues to demonstrate resilience in the retail sector as it navigates a challenging economic landscape. Recently, the membership-based retail giant reported sales that surpassed expectations, even as its profitability indicators offered a mixed picture. The company’s robust performance in the non-food categories, with comparable sales rising by 8.3%, underscores its capacity to adapt and thrive.

“The expansive scale and strong private label presence of Costco provide it a hedge against negative external pressures such as tariffs.”

— Corey Tarlowe, Jefferies

Corey Tarlowe of Jefferies, who has a commendable track record with his stock recommendations, reaffirms his buy rating on Costco, updating his target range to between $1,145 and $1,180. His analysis emphasizes that Costco’s domestic sourcing strategies offer a degree of insulation from international trade uncertainties.

Karman Holdings: Innovating at the Intersection of Defense and Aerospace

Karman Holdings, a newly public player in the defense and aerospace sectors, has captured the attention of investors with its diversified portfolio, which spans protection systems, propulsion, and launch technologies. This strategic mix places the company at the nexus of technological advancements in both military and space exploration fields.

“Karman Holdings is well-positioned for ongoing expansion, with a strong focus on high-growth areas within defense and aerospace.”

— Amit Daryanani, Evercore

Amit Daryanani of Evercore has initiated coverage on Karman Holdings with a buy rating and set a price target of $38. His forecasts suggest that the company’s revenues could climb by approximately 18% in 2025, reaching an estimated $409 million. Additionally, the anticipated revival in U.S. orbital launch activities is expected to further bolster the firm’s performance.

Outlook for Long-Term Investors

As the market continues to contend with various headwinds, Zscaler, Costco, and Karman Holdings present themselves as compelling long-term investments. With Zscaler reaping the benefits of a surge in AI-driven cybersecurity measures, Costco maintaining its sturdy position in the retail space, and Karman Holdings driving innovation in defense and aviation technology, these companies offer diversified opportunities for investors aiming to build resilient portfolios.

Industry experts believe that these selections, underpinned by strong fundamentals and promising growth trajectories, merit close attention amid the medium- to long-term market outlook.