Top Wall Street analysts favor these 3 stocks

Investors have had a volatile trading week, during which the Donald Trump administration's tariff policies have rattled major indices. With this in mind, investors can take inspiration from a selection of leading Wall Street analysts.

Below, we present three stocks that TipRanks platform experts believe are promising long-term investments.

Zscaler $ZS

The first pick is Zscaler, which specializes in cloud-based cybersecurity. Its Zero Trust Exchange platform protects users, devices and applications from cyber threats. The company recently posted results for the second quarter of fiscal year 2025 that beat market expectations. A key growth driver is the growing adoption of the Zero Trust model and the use of artificial intelligence.

TD Cowen analyst Shaul Eyal reiterated a Buy rating and set a $270 target price on the stock. Key success factors include improved business strategy, better sales turnover and increased productivity of sales teams. Zscaler expects to reach $3 billion in annual recurring revenue by the end of fiscal 2025.

Costco Wholesale $COST

The second favorite is Costco Wholesale, a membership-based retail chain that recently posted mixed results for the second quarter of fiscal year 2025. Revenue topped expectations, while earnings fell short.

Jefferies analyst Corey Tarlowe pointed out that the lower margins were due to forex effects, but strong sales growth and membership remained a positive factor. Costco reported 8.3% year-over-year comparable sales growth and growing traffic in the US. The company has the potential to further expand its distribution network and its private label brands can reduce the impact of US tariff measures. Tarlowe reiterated a buy recommendation and raised his target price on the stock to $1,180.

Karman Holdings $KRM

The third stock on the list is Karman Holdings, a newly traded company focused on defense and space systems. The company manufactures a range of products, including protection and propulsion systems for rockets and satellites.

Evercore analyst Amit Daryanani recently initiated coverage on KRMN stock with a Buy recommendation and a $38 price target. He expects Karman to benefit from growing demand for orbital launch and defense systems. In 2025, the company is expected to reach revenues of $409 million with 18% year-over-year growth.

Daryanani sees Karman Holdings as a key player in the defence and space market, with the potential to sustain growth in the mid- to upper-teens percentages over the long term.

Disclaimer: There is a lot of inspiration to be found on Bulios, but stock selection and portfolio construction is up to you, so always do a thorough analysis of your own.

Source: Yahoo Finance