In the midst of the ongoing turbulence surrounding tariffs and its ripple effects on global stock markets, savvy investors must adopt a strategic approach to navigate a landscape fraught with uncertainty. The chaos may induce jitters among market participants, yet it simultaneously presents a fertile ground for discerning investors. The market downturn, now characterized by high anxiety levels about future economic performance, allows for the identification of undervalued stocks that possess the resilience and capability to weather short-term challenges. In this article, we will explore three standout stocks that have gained the favor of top Wall Street analysts, shedding light on their impressive potential for long-term returns.
Affirm Holdings: The Resilient BNPL Challenger
First on our radar is Affirm Holdings (AFRM), a prominent player in the buy now, pay later (BNPL) space. A recent analysis by TD Cowen’s knowledgeable analyst, Moshe Orenbuch, underscores Affirm’s standing as a brand that effectively caters to both consumer needs and merchant partnerships. With an impressive user base of 21 million active customers and over 300,000 merchants leveraging its services, Affirm has established itself as an industry leader.
Orenbuch’s initiation of coverage with a buy rating and a price target of $50 is noteworthy. He suggests that Affirm’s valuation is compelling, sitting at approximately 23 times the adjusted earnings per share projected for 2026. The analyst highlights Affirm’s exceptional underwriting capabilities, crediting its experience in long-term loan underwriting for a competitive advantage against less seasoned rivals.
Three key elements position Affirm strongly for future success: its extensive partnerships with leading e-commerce platforms, its sound funding programs that enable better capital market terms, and the company’s resilience during challenging credit periods. Orenbuch notes that even if there is a temporary downturn in gross merchandise value due to labor market weaknesses, Affirm maintains its long-term profitability trajectory. With Orenbuch ranking as one of the top analysts, his insights provide valuable guidance for potential investors reconsidering the BNPL space.
TJX Companies: The Discount Retail Powerhouse
Next, we turn our attention to TJX Companies (TJX), a titan in the off-price retail sector operating over 5,000 stores worldwide. According to Jefferies’ analyst, Corey Tarlowe, TJX is optimally positioned to exploit the current surplus inventory in the market. His unwavering buy rating, supported by a robust price target of $150, reflects confidence in the retailer’s strategic edge.
Tarlowe’s comprehensive “Inventory Insanity” analysis reveals that inventory management among the coverage group has seen a year-over-year rise. Yet, TJX’s ability to access affordable inventory provides it with a competitive advantage over traditional retailers. Tarlowe emphasizes the significance of TJX’s experienced buying team, which can capitalize on opportunities across a vast vendor network.
Moreover, the shift towards off-price retail presents TJX with a unique chance to capture market share previously dominated by mainstream retailers. Paired with growth initiatives in the home goods category and international expansion, TJX stands poised to create lasting value for its shareholders.
CyberArk: The Cybersecurity Frontline Innovator
Finally, let’s delve into CyberArk Software (CYBR), a specialist in identity security solutions. In an increasingly digital and threat-laden landscape, CyberArk emerges as a critical player, successfully addressing the growing demand for cybersecurity solutions. The company’s forthcoming Q1 results are eagerly anticipated, with TD Cowen’s analyst, Shaul Eyal, expressing optimism through a reiterated buy rating and an ambitious price target of $450.
Eyal attributes CyberArk’s resilience to strong market demand and its commitment to expanding its platform beyond traditional privileged access management. While global macroeconomic challenges persist, Eyal points to unwavering support from value-added resellers and consultants in their sequential pipeline.
CyberArk’s strategic acquisitions, including Zilla and Venafi, signify its commitment to innovation and growth. Success in the burgeoning Agentic AI market also presents substantial opportunities for expansion. Eyal’s confident outlook on CyberArk’s revenue guidance hints at significant growth on the horizon, reflecting a bullish perspective on the stock.
As the financial landscape wades through waves of turmoil, these three stocks—Affirm Holdings, TJX Companies, and CyberArk—represent compelling options for investors seeking calculated opportunities. In a climate defined by uncertainty, the potential rewards of well-positioned entities are substantial, offering a glimpse of hope amid the volatility.