Wall Street Still Loves These 3 Stocks — Even with Tariffs Causing Chaos
Markets are rattled by new tariffs, but analysts are doubling down on these three surprising stock picks.
After three tough days for U.S. markets, Tuesday opened with a sigh of relief. Dow Jones futures jumped by around 1,000 points, while the S&P 500 and Nasdaq also showed solid gains. The rally followed news that the Trump administration has begun trade talks with Japan, giving investors a glimmer of hope that aggressive tariffs may serve more as leverage than as lasting policy.
But not all the news was reassuring. China issued a stern warning that it is prepared to "fight to the end" if the U.S. goes through with its planned tariffs. Since the tariff announcements, the S&P 500 has dropped over 10%, marking its worst three-day decline since the onset of the COVID-19 pandemic in March 2020. Market volatility remains high across sectors.
Still, some Wall Street analysts are standing by select stocks, even upgrading a few despite the turbulence. Here's a closer look at three names analysts are still backing strongly.
IBM: Strong Fundamentals and Recurring Revenue
Evercore ISI analyst Amit Daryanani maintained an "Outperform" rating on IBM and set a $275 price target, representing about 22% potential upside. He highlighted IBM's steady software revenue growth, its growing AI and Red Hat businesses, and the company’s durable position within mission-critical tech infrastructure.
He also pointed to improving consulting operations and a resilient mainframe business. With IBM trading at a notable discount compared to peers in terms of enterprise value to free cash flow, analysts see significant upside, particularly if macroeconomic fears begin to ease.
Meta: Advertising Growth Despite Headwinds
Guggenheim analyst Michael Morris gave Meta a "Buy" rating and a $675 price target, signaling an expected upside of 27%. Despite global economic uncertainties and trade risks, Meta's advertising performance continues to stand out. Recent data shows increasing user engagement on Facebook and Instagram, along with growing advertiser interest in ad formats like Reels and Advantage+.
Morris noted that Meta is still seen as a dominant player in digital advertising, and its ongoing AI investments are expected to fuel future growth. The upcoming earnings call is likely to offer more clarity on how the company plans to navigate a complex global environment.
Planet Fitness: Resilient Model in Volatile Times
JPMorgan analyst John Ivankoe reaffirmed a "Buy" rating on Planet Fitness, with a $98 price target and an estimated upside of 5%. He emphasized the gym chain's consistent performance even during uncertain economic periods. As a low-cost fitness provider, Planet Fitness has shown it can maintain and grow its customer base even when household budgets tighten.
Investors are also watching how the company responds to tariff-related pressures on supply chains and whether higher costs could impact new gym development. However, analysts believe the company’s scalable, low-overhead model offers strong protection against those risks.
Why These Stocks Still Stand Out
While overall market sentiment remains shaky due to trade tensions, inflation concerns, and economic uncertainty, companies like IBM, Meta, and Planet Fitness are being backed for their solid fundamentals and strategic positioning. Each brings a unique advantage: IBM's high-margin software and enterprise clients, Meta's strong digital ad engine, and Planet Fitness's recession-resistant growth strategy.
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