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Top Wall Street analysts find these 3 stocks attractive in these challenging times
AFRMAffirm(AFRM) CNBC·2025-04-13 10:42

Market Overview - Ongoing chaos around tariffs is impacting global stock markets, leading to fears of higher costs and potential economic slowdown [1] - The pullback in several stocks presents opportunities to identify attractive investments that can navigate short-term challenges [1] Affirm Holdings (AFRM) - Affirm Holdings is a buy now, pay later (BNPL) platform with 21 million active customers and 337,000 active merchants as of the end of 2024 [3] - TD Cowen analyst Moshe Orenbuch initiated coverage with a buy rating and a price target of 50,valuingthestockatapproximately23timesthe2026adjustedearningspershare[4]−OrenbuchhighlightsAffirm′sseasonedunderwritingcapabilitiesandpartnershipswithmajore−commerceplayerslikeAmazonandShopify,whichenhanceitsmarketposition[5][6]−Despitepotentialshort−termprofitimpactsduetoaslowingjobmarket,OrenbuchbelievesAffirm′slong−termprofitabilitytrajectoryremainsintact[7]TJXCompanies(TJX)−TJXCompaniesoperatesover5,000off−priceretailstoresacrossninecountries,includingbrandslikeTJMaxxandMarshalls[9]−JefferiesanalystCoreyTarlowereaffirmedabuyratingwithapricetargetof50, valuing the stock at approximately 23 times the 2026 adjusted earnings per share [4] - Orenbuch highlights Affirm's seasoned underwriting capabilities and partnerships with major e-commerce players like Amazon and Shopify, which enhance its market position [5][6] - Despite potential short-term profit impacts due to a slowing job market, Orenbuch believes Affirm's long-term profitability trajectory remains intact [7] TJX Companies (TJX) - TJX Companies operates over 5,000 off-price retail stores across nine countries, including brands like TJ Maxx and Marshalls [9] - Jefferies analyst Corey Tarlowe reaffirmed a buy rating with a price target of 150, noting TJX's strong position to capitalize on surplus inventory in the market [10] - Tarlowe expects TJX to benefit from a secular shift towards off-price retail, gaining market share from traditional retailers [12] - The company delivered a peak gross margin of 30.6% in fiscal 2025, and Tarlowe views the fiscal 2026 gross margin guidance of 30.4% to 30.5% as conservative [13] CyberArk Software (CYBR) - CyberArk Software specializes in identity security solutions and is set to announce its first-quarter results on May 13 [15] - TD Cowen analyst Shaul Eyal reiterated a buy rating with a price target of 450,citingstrongdemandandthecompany′sabilitytonavigatechallengingmarketconditions[16]−EyalnotesthatCyberArk′sconsistentperformanceissupportedbythecriticalnatureofitsIdentityandAccessManagementsolutionsamidincreasingcyberthreats[17]−ThecompanyisexpandingitsplatformthroughstrategicacquisitionsandhassignificantopportunitiesintheAgenticAImarket,aimingforlong−termtargetsof450, citing strong demand and the company's ability to navigate challenging market conditions [16] - Eyal notes that CyberArk's consistent performance is supported by the critical nature of its Identity and Access Management solutions amid increasing cyber threats [17] - The company is expanding its platform through strategic acquisitions and has significant opportunities in the Agentic AI market, aiming for long-term targets of 2.2 billion in revenue and $600 million in free cash flow by fiscal year 2028 [19]