As fears of higher costs and a potential economic slowdown rattle global markets, the recent pullback in several stocks presents buying opportunities. Wall Street’s top analysts have identified companies that could weather these short-term headwinds while delivering substantial returns over the long term.
Here are three top stocks that analysts believe are positioned to weather the tariff turmoil in 2025.
Stock #1: International Business Machines
International Business Machines (IBM) has caught the attention of analysts despite broader market uncertainties. A TipRanks report states that Bank of America Securities analyst Wamsi Mohan recently reiterated a “Buy” rating on IBM with a price target of $270, suggesting significant upside potential.
According to Mohan, IBM’s resilience is attributed to its recurring revenue streams and mission-critical workloads, providing a buffer against economic fluctuations. Its software segment shows promising growth, with contributions from Transaction Processing, Red Hat, and strategic acquisitions like HashiCorp.
Stifel Nicolaus also maintained a “Buy” rating with an even more optimistic $290 price target, reinforcing confidence in IBM’s position. Valued at a market cap of $212 billion, IBM stock has returned 88% to shareholders in the past five years.
Out of the 19 analysts tracking IBM stock, seven recommend “Strong Buy,” one recommends “Moderate Buy,” nine recommend “Hold,” and two recommend “Strong Sell.” The average target price for IBM stock is $250.61, 10% above the current trading price of $320.
Stock #2: Affirm
Buy now, pay later platform Affirm Holdings (AFRM) has garnered positive attention, with TD Cowen analyst Moshe Orenbuch initiating coverage with a “Buy” rating and a $50 price target.
According to a CNBC report, the analyst highlighted Affirm’s seasoned underwriting capabilities and its strategic partnerships with major e-commerce players, such as Amazon (AMZN) and Shopify (SHOP). These key relationships not only reflect Affirm’s capabilities but also allow it to pursue higher volumes from both large and small businesses more effectively than competitors.
Even if gross merchandise value growth slows due to job market weaknesses, Orenbuch believes this would have only a short-term impact on Affirm’s profits without affecting its long-term profitability trajectory.
Valued at a market cap of $14 billion, Affirm is forecast to increase sales from $2.32 billion in fiscal 2024 (ended in June) to $3.95 billion in 2026. Its free cash flow is forecast to improve from $291 million in 2024 to $1.35 billion in 2026.
Out of the 23 analysts covering AFRM stock, 16 recommend “Strong Buy” and seven recommend “Hold.” The average target price for Affirm stock is $70.95, over 42% above the current trading price.
Stock #3: Expand Energy
UBS analysts maintain a “Buy” rating on Expand Energy (EXE) with a $131 price target, expressing confidence ahead of the company’s first-quarter results due May 6. According to Investing.com, UBS analysts expect Expand Energy to benefit from current natural gas (NGK25) price trends despite recent market volatility.
The company plans to increase volumes from 7.1 billion cubic feet per day in 2025 to 7.5 Bcfpd in 2026, underlining its commitment to scaling operations. A focus on dividend payments and debt reduction is also expected to strengthen its financial position, potentially enhancing shareholder value.
Valued at a market cap of $24 billion, Expand Energy is also set to join the S&P 500, which could increase demand for its stock from index funds. Out of the 26 analysts covering EXE stock, 21 recommend “Strong Buy,” two recommend “Moderate Buy,” and three recommend “Hold.” The average target price for the energy stock is $123.04, 18% above the current trading price.
