The global market is currently engulfed in uncertainty due to rampant tariff debates and looming economic concerns. Investors are understandably jittery, with many turning to defensive strategies rather than making aggressive bets on growth. Yet amidst this chaos lies a paradox: some stocks are becoming appealing bargains, ripe for picking by those with a discerning eye. With expert analysis suggesting a potential upside, here are three stocks that not only withstand current headwinds but are also poised for remarkable returns.
1. Affirm Holdings: Champion of Consumer Financing
Consumers today face an array of payment alternatives, yet Affirm Holdings (AFRM) stands out as a leading contender in the burgeoning buy now, pay later (BNPL) market. As of the end of 2024, the company boasted a staggering 21 million active users and a robust network of 337,000 merchants. Analyst Moshe Orenbuch of TD Cowen has shown confidence in Affirm, initiating coverage with a buy rating and a price target of $50. This reflects a considerable valuation based on projected earnings for 2026, specifically 23 times its adjusted earnings per share.
What elevates Affirm in the BNPL sector is its differentiated business model. Unlike many of its competitors, Affirm boasts a full-suite lending capability that sets it apart. Orenbuch emphasizes its sophisticated underwriting abilities, cultivated through extensive experience in longer-term loans prior to entering the BNPL arena. This nuanced understanding of consumer credit translates directly to more responsible lending practices.
Moreover, Affirm’s partnerships with e-commerce giants such as Amazon and Shopify serve as testament to its value proposition. These relationships not only enhance brand credibility but also enable higher transaction volumes, further solidifying its position in a competitive market. Even amid macroeconomic challenges, Orenbuch believes that Affirm’s trajectory remains unaltered, anticipating that any short-term profit dips will ultimately pave the way for long-term profitability.
2. TJX Companies: Lasting Value in Off-Price Retail
In today’s cost-conscious shopping environment, TJX Companies (TJX) has emerged as a beacon of resilience. Operating over 5,000 stores internationally, TJX’s diverse brands— including TJ Maxx and Marshalls— allow the company to capitalize on inventory fluctuations while appealing to budget-savvy consumers. Jefferies analyst Corey Tarlowe recently reaffirmed a buy rating for TJX, assigning a price target of $150.
TJX’s business model is centered on opportunistic purchasing, acquiring inventory at significantly reduced prices and passing those savings onto consumers. Tarlowe’s “Inventory Insanity” analysis reveals a favorable market landscape, with surplus inventory ripe for acquisition. TJX’s established buying team of over 1,300 buyers positions the company uniquely to tap into these opportunities.
Furthermore, Tarlowe notes the institutional transition toward off-price retailing as a crucial growth driver for TJX. As traditional retail channels struggle to maintain momentum, off-price outlets are increasingly attracting market share. The company’s strategic expansion in home goods and international markets adds another layer of potential growth, suggesting that TJX is not merely surviving but positioned to thrive in a shifting landscape.
3. CyberArk Software: Navigating the Cybersecurity Maze
Amidst the cacophony of economic perturbations, CyberArk Software (CYBR) emerges as a sturdy guardian in the cybersecurity sector, specializing in identity security. Analyst Shaul Eyal of TD Cowen has expressed optimism regarding CyberArk’s prospects, reaffirming a buy rating alongside a price target of $450. With upcoming earnings reports on the horizon, CyberArk is predicted to not only meet but exceed revenue expectations in a contributing market landscape.
What fuels this confidence? CyberArk showcases an unwavering demand for its identity and access management solutions amid a fast-evolving cyber threat landscape. As cyberattacks surge, the critical importance of cybersecurity solutions like those offered by CyberArk cannot be overstated. Eyal cites a stable demand pipeline as reinforcement of the company’s strategic positioning, enhanced by growing partnerships and acquisitions that extend CyberArk’s capabilities.
The acquisition of firms like Zilla and Venafi indicate a proactive approach to bolstering its service offerings, particularly in the burgeoning domain of agentic AI. While global macro challenges persist, CyberArk’s ability to refine its revenue guidance upwards this fiscal year could signal an impressive rebound.
Investors willing to take calculated risks in today’s uncertain market may find these three stocks—Affirm Holdings, TJX Companies, and CyberArk Software—present not just a refuge but a pathway to potential future gains. Each company is equipped with innovative strategies and market insights that not only align with current economic conditions but also showcase a remarkable capacity for long-term growth.