Top Wall Street analysts find these 3 stocks attractive in these challenging times

The chaos round tariffs continues to rattle world inventory markets, as fears of upper prices and issues over a possible financial slowdown weigh on investor sentiment.

Nonetheless, the pullback in a number of shares resulting from these ongoing challenges has created a chance to choose enticing shares buying and selling at compelling ranges. High Wall Avenue analysts can assist establish shares that might navigate short-term headwinds and ship strong returns over the long run.

With that in thoughts, listed here are three shares favored by the Avenue’s prime professionals, in accordance with TipRanks, a platform that ranks analysts based mostly on their previous efficiency.

Affirm Holdings

We begin this week with Affirm Holdings (AFRM), a purchase now, pay later (BNPL) platform. As of the tip of 2024, Affirm had 21 million energetic prospects and 337,000 energetic retailers.

On April 7, TD Cowen analyst Moshe Orenbuch initiated protection of Affirm inventory with a purchase ranking and a worth goal of $50, reflecting a valuation of about 23-times the 2026 adjusted earnings per share. “AFRM is among the prime performing BNPL manufacturers within the U.S. with a full-suite [point of sale] lending functionality vs friends, and certain essentially the most pro-consumer practices within the business,” mentioned the analyst.

Orenbuch thinks that AFRM possesses extra seasoned underwriting capabilities than its rivals, as the corporate started underwriting longer-term loans earlier than providing BNPL options.

The analyst additionally highlighted the corporate’s partnerships with huge e-commerce gamers like Amazon and Shopify. Orenbuch contends that these key partnerships mirror Affirm’s capabilities whereas permitting it to pursue greater volumes from each huge and small companies extra successfully than different BNPL gamers. Moreover, he identified that Affirm has a powerful funding program that has traditionally helped it safe higher phrases within the capital market in comparison with others within the client lending business.

Orenbuch added that AFRM fared higher than nonprime lenders within the robust credit score interval in 2022-2023. He contends that even when gross merchandise worth progress slows down over the quick time period resulting from weak point within the job market, it is going to have a short-term impression on AFRM’s earnings and certain not weigh on its long-term profitability trajectory.

Orenbuch ranks No.22 amongst greater than 9,300 analysts tracked by TipRanks. His rankings have been worthwhile 64% of the time, delivering a mean return of 19.4%. See Affirm Holdings Inventory Charts on TipRanks.

TJX Firms

This week’s second inventory decide is TJX Firms (TJX), an off-price retailer that operates greater than 5,000 shops throughout 9 nations, together with the TJ Maxx, Marshalls, HomeGoods, Homesense, and Sierra shops within the U.S. TJX and different off-price retailers promote merchandise at deep reductions in comparison with costs provided on comparable merchandise by department shops or different retailers, as they opportunistically buy their stock at decrease prices.

Lately, Jefferies analyst Corey Tarlowe reaffirmed a purchase ranking on TJX inventory with a worth goal of $150. The analyst acknowledged that Jefferies’ up to date “Stock Madness” evaluation following the fourth-quarter outcomes revealed that stock rose 2.9% 12 months over 12 months throughout the agency’s protection group of 85 corporations in comparison with 2.2% in Q3 2024. Tarlowe thinks that TJX Firms is the perfect positioned within the off-price house to make the most of the excess stock within the market. 

“Due to this fact, with an skilled group of +1.3k patrons, we imagine TJX ought to witness and outsized profit from persevering with to purchase opportunistically throughout its +21k distributors and greater than 100 nations,” the analyst mentioned.

Furthermore, Tarlowe expects TJX to achieve from the secular shift in the direction of the off-price sector, which may assist the retailer seize market share from different, extra conventional retailers. The analyst additionally sees the corporate’s additional growth within the Residence class and abroad markets as distinctive progress alternatives.

Tarlowe famous that TJX delivered a peak gross margin of 30.6% in fiscal 2025 regardless of an unfavorable comparability with the earlier 12 months, which included a 53rd week (resulting from a bissextile year). He thinks that administration’s fiscal 2026 gross margin steering of 30.4% to 30.5% appears conservative, particularly provided that the corporate exceeded its fiscal 2025 margin outlook.

Tarlowe ranks No.574 amongst greater than 9,300 analysts tracked by TipRanks. His rankings have been profitable 55% of the time, delivering a mean return of 10.2%. See TJX Firms Insider Buying and selling Exercise on TipRanks.

CyberArk Software program

Lastly, let’s take a look at CyberArk Software program (CYBR), a cybersecurity firm that makes a speciality of identification safety options. The corporate is scheduled to announce its first-quarter outcomes on Could 13.

Heading into the Q1 2025 outcomes, TD Cowen analyst Shaul Eyal reiterated a purchase ranking on CYBR inventory with a worth goal of $450. The analyst thinks that CyberArk is well-positioned to navigate the difficult market situations and surpass the Avenue’s income estimate. Eyal’s optimism is backed by checks by his agency that indicated continued power in demand, with CYBR’s effort to increase its platform away from its core privileged entry administration gaining traction amongst prospects.

Moreover, Eyal famous that regardless of rising world macro challenges, value-added resellers, consultants, and companions are usually not seeing any slowdown within the second-quarter pipeline. He cited a number of the key causes for CYBR’s constant efficiency, together with its Id and Entry Administration’s mission criticality and the persistent assault on digital identities by hackers. Additionally, rival SailPoint’s latest outcomes and outlook did not point out any slowdown, which bodes effectively for CyberArk as each corporations are focusing on comparable market tiers.  

Eyal sees the potential of CyberArk revising the mid-point of its fiscal 2025 income steering greater because the 12 months progresses. However, he contends that even when the corporate reiterates its steering regardless of a attainable Q1 2025 beat, it is going to nonetheless be seen positively, given the rising macro challenges.

The analyst additionally highlighted CYBR’s efforts to increase its platform by means of strategic acquisitions like that of Zilla, which presents identification governance and administration options, and Venafi, which supplies machine identification options. He continues to see an enormous alternative for CyberArk within the Agentic AI market.

“CYBR is executing effectively and stays effectively positioned to realize its LT FY28 targets of $2.2B in rev and $600M of FCF [free cash flow],” mentioned Eyal.

Eyal ranks No.14 amongst greater than 9,300 analysts tracked by TipRanks. His rankings have been profitable 64% of the time, delivering a mean return of twenty-two.5%. See CyberArk Possession Construction on TipRanks.