Navigating Volatile Markets: Top Stock Picks to Consider

As the investing landscape continues to shift, marked by fluctuations in the market driven by various economic factors—including tariff rhetoric from the Trump administration—investors find themselves on a rollercoaster ride. Despite a rally on Friday, major stock averages still reflected week-long losses, underlining the inherent volatility of the current trading atmosphere. At Extreme Investor Network, we understand that navigating these turbulent waters requires a focused approach, especially when it comes to selecting stocks that can weather short-term pressures while providing long-term growth.

To assist in your investment journey, we’ve compiled a list of three standout stocks backed by Wall Street’s top analysts, each demonstrating resilience and potential for considerable returns.

Spotlight on Zscaler (ZS)

Cybersecurity Innovator Making Waves

At the forefront of our recommendations is Zscaler, a cloud-based cybersecurity company that continues to shine with its innovative Zero Trust Exchange platform. This service ensures secure connectivity for users, devices, and applications—critical in a world where cyber threats loom large. Recently, Zscaler posted impressive market-beating results for its second quarter of fiscal 2025, attributed to increased adoption of its Zero Trust model and advancements in artificial intelligence.

TD Cowen analyst Shaul Eyal has reaffirmed a buy rating on Zscaler with a price target of $270, buoyed by several strong indicators including enhanced sales productivity and a strategic go-to-market approach. Notably, Zscaler is on track to achieve $3 billion in annual recurring revenue by the close of fiscal 2025, a significant milestone underscoring its strong market position.

Furthermore, Zscaler’s federal business is positioned for growth, serving 14 of the 15 U.S. cabinet agencies, and is likely to benefit from initiatives aimed at increasing government efficiency. With an average return of 23.9% from Eyal’s ratings, this stock is one to watch.

Costco Wholesale (COST)

Retail Resilience in Uncertain Times

Next on our list is Costco Wholesale, a membership-only warehouse powerhouse that has demonstrated its ability to thrive even amidst financial headwinds. While the company’s recent second-quarter results for fiscal 2025 showed a slight earnings miss, it also exceeded revenue expectations due to higher comparable sales, highlighting its resilience.

Jefferies analyst Corey Tarlowe emphasized the stock’s potential, noting Costco’s robust comparable sales growth of 8.3%—a testament to its strong performance in non-food categories amid broader retail challenges. With a solid membership base and plans for expanding its warehouse footprint, Costco seems well insulated against recent tariff impacts, as less than half of its U.S. sales rely on imports from countries affected by tariffs.

Feedback from Tarlowe—who has an average return of 11.4% on his recommendations—confirms that the scale of Costco’s operations and its strong private label penetration will support its continued growth. His updated price target of $1,180 reflects confidence in Costco’s long-term prospects.

Karman Holdings (KRMN)

A New Player in Defense and Space Systems

Finally, we turn our attention to Karman Holdings, a newly public defense and space systems manufacturer that is quickly making a name for itself. With an extensive array of offerings, including payload systems and propulsion technologies, Karman is perfectly positioned to benefit from several growing trends in the military and aerospace sectors.

Amit Daryanani from Evercore recently initiated coverage on Karman with a buy rating and a price target of $38. His optimism is based on the expected burgeoning demand in U.S. orbital launch volumes and a renewed focus on missile defense systems. Daryanani anticipates that Karman’s sales could grow by 18% year-over-year, bolstered by multi-year restocking initiatives from U.S. and NATO allies.

Given Karman’s unique positioning to address rapidly evolving military and space market demands, its stock presents a compelling investment opportunity, especially for those seeking exposure to high-growth sectors.

Final Thoughts

As we navigate through a volatile market, investing wisely requires more than just a finger on the pulse of the economy; it demands strategic selection of stocks poised for success. With these three compelling options—Zscaler, Costco, and Karman Holdings—you can enhance your portfolio with companies that are built to withstand market pressures.

At Extreme Investor Network, we are dedicated to bringing you the insights you need to make informed investment decisions. Keep an eye on these stocks as they could not only withstand current economic fluctuations but also drive substantial growth in your portfolio’s future. For more tailored investment strategies and insights, stay connected to our blog.