Costco (COST)
Price target: Unlock
Second PT: Unlock
A good name to start small and add to overtime using the "DCA" strategy. If you don’t know what that is, let me know.
Costco has long been viewed as one of the market’s strongest defensive stocks, and that reputation only grows during periods of economic uncertainty. The company’s membership based model creates a recurring, highly predictable revenue stream that is less sensitive to economic cycles renewal rates north of 90% demonstrate just how durable that foundation is. Even when consumers tighten spending, they tend to keep their Costco membership because of the value it provides on essential goods like groceries, household items, and fuel.
Additionally, Costco’s scale gives it stronger pricing power and negotiating leverage during inflationary or supply chain strained periods. The retailer can absorb cost pressures better than peers, allowing it to pass savings to members while maintaining healthy traffic trends. This “value moat” becomes even more attractive when consumer confidence softens, often leading to increased visits as shoppers consolidate trips and look for lower prices.
Last quarter, Costco posted 9.2% revenue growth and even stronger net income growth compared to a year ago. E-commerce is a bright spot, where digital sales rose 21.7% year over year, and the company is expected to maintain high growth through geographic expansion and deeper digital engagement.
Historically, Costco has outperformed broader retail and market indices during volatile periods because its core business is built around essentials, not discretionary items. With steady foot traffic, resilient same store sales, and disciplined inventory management, Costco often acts as a safe harbor for investors seeking stability across uncertain economic cycles.
Room for improvement:
Although Costco is efficient, it can still be better. The stock’s current price to earnings ratio of 50x makes it higher than peers and may hold it back in the short term. But as profits grow and the earnings multiple gets adjusted, it’ll likely begin to attract buyers again. Costco is a choice for those who have a long timeline and want to slowly add a defensive play to a portfolio.
Please note that the stock includes risks and price targets are subject to change based on market developments and company updates. These stocks usually take time to come around. Wanna see real-time market updates? Learn more here.
Okta (OKTA)
Price target: Unlock
Second PT: Unlock
Identity security is becoming a foundational layer in AI-era security. Identity and Access Management (IAM) ensures that the right person gets access when logging in, the wrong person gets blocked, and access is verified continuously.
When it comes to cybersecurity firms, the biggest players focus on a specific part of the layer. Okta focuses on IAM, which is arguable one of the most important layers in 2026. With remote work, cloud apps, AI tools, third-party vendors…etc. the biggest attacks come from credential compromise. Okta’s services and products are used by enterprises to manage employee access….examples include single sign-ons and multi-factor authentication. Some companies you might be familiar with that use Okta’s services are Uber and Coinbase.
As for financial performance, Okta is not a high growth company, but they are growing at a consistent rate. Constant demand and sticky product cycles gives foreseeable revenue, which has showed an average growth rate of 11-12% in the past 12 months. The company struggled to turn positive net income up until 2024, and since then, they’ve been profitable. Balance sheet has a respectable $7 billion in positive equity (not bad for a company valued at $14B). And free cash flow is positive, nearing $1 billion.
Although a 60x P/E is high, the company’s outlook can justify the price. And at the current market valuation, Okta is among the cheapest cybersecurity player right now.
Risk:
Okta remains highly relevant in cybersecurity as a leader in identity and access management, a critical layer in today’s environment. While it has faced pressure from past security incidents, stronger competition, especially from Microsoft, and slower enterprise IT spending, identity security remains foundational to cloud and AI driven systems, keeping Okta strategically important despite the challenges.
Please note that the stock includes risks and price targets are subject to change based on market developments and company updates. These stocks usually take time to come around. Wanna see real-time market updates? Learn more here.
Stock Name - Unlock
You've reached the end of our complimentary public watchlist. Unlock for the full list by becoming a member of our Hyper Stocks community. Click here to unlock more high probability set-ups!
Stock Name - Unlock
You've reached the end of our complimentary public watchlist. Unlock for the full list by becoming a member of our Hyper Stocks community. Click here to unlock more high probability set-ups!
Stock Name - Unlock
You've reached the end of our complimentary public watchlist. Unlock for the full list by becoming a member of our Hyper Stocks community. Click here to unlock more high probability set-ups!
Disclaimer: This article is for informational and educational purposes only and does not constitute financial advice. Investing involves risk, including the possible loss of capital. Always conduct your own research or consult with a licensed financial advisor before making investment decisions.
Hyper Stocks and its contributors may hold positions in some of the securities or assets mentioned above. These positions are subject to change without notice. Any opinions expressed reflect current views at the time of writing and are not guarantees of future performance. Past performance does not guarantee future results.