Analysts Say These Are the Top 3 Stocks to Buy Amid US-Israel War on Iran

Analysts at brokerage firm Wedbush, led by Don Ives, are firm about their bullishness on technical names. In fact, when the market shut down software stocks because of their perceived lack of confidence in the age of AI, Ives and his team of analysts flagged these names. Thus, it is not surprising that the war in West Asia is not enough to shake their faith in some of the leading names in the tech sector.

In a note to clients, the firm further clarified its position, saying, “These tech names are defensive and well-positioned stocks that ride this volatility with strong business models. Cybersecurity and military-exposed names (Palintir) are particularly well-positioned in our view.”

With that in mind, here are three select names among Wedbush’s favorites that investors can watch for the long term now.

We start our list with Apple (AAPL) as the consumer tech giant has recently come out with a new set of products. Founded in 1976 by visionary Steve Jobs, Apple designs and sells consumer electronics, software and digital services with some of the most recognizable names in the industry such as the iPhone, MacBook, iPad and iMac, among others. In addition, over the years, it has also built a strong service business.

With a market value of 3.82 trillion, Apple is one of the most valuable companies in the world. However, the stock is down 5.49% year-to-date (YTD).

Regardless of sentiment on the street, Apple has been on a roll for more than two years. And the most recent quarter was no different.

For fiscal Q1 2026, Apple reported revenue of $143.8 billion, up 16% from last year. This was largely driven by strong demand for the iPhone 17 lineup. iPhone net sales reached $85.3 billion, reflecting a 23% year-over-year (YOY) increase. The high-margin services segment also grew strongly, with net sales rising to $30 billion from $26.3 billion in the year-ago period.

Gross margin expanded to 48.2%, indicating the company’s pricing discipline and product mix strength. Earnings per share rose 18% to $2.84, beating the Street consensus of $2.65. Share repurchases were $25.2 billion during the quarter, providing additional support to EPS growth.

Operating cash flow was particularly impressive at $53.9 billion, an 80% increase over last year. The company closed the period with $45.3 billion in cash and equivalents, before $13.8 billion in short-term debt.

However, the valuation reflects the premium placed on Apple’s growth profile. The stock currently trades at a forward P/E of 31.22x, a P/S of 8.22x, and a P/CF of 26.20x. All of these are above the sector medians of 21.82x, 3.08x, and 17.57x, respectively.

Overall, analysts have an overall rating of “moderate buy” for the stock, with an average target price of $296.05. This implies an upside of 15.16% from the current level. Of the 42 analysts covering the stock, 22 have a “strong-buy” rating, three have a “neutral-buy” rating, 16 have a “hold” rating, and one has a “strong sell” rating.

We move on to another Ives favorite, Microsoft ( MSFT ). Microsoft Co-founded by Bill Gates in 1975, Microsoft is one of the largest and most diverse technology companies in the world with instantly recognizable names like Microsoft 365, Azure, and Xbox in its stable. Microsoft is also investing heavily in AI (Copilot services, Azure AI), cybersecurity tools, and developer platforms.

Worth around $3 trillion, Microsoft is one of the most valuable companies in the world and was one of the first investors in AI bellwether OpenAI. Still, like its smaller peers in the software space, MSFT stock has had a difficult 2026 so far, falling 15.39% YTD.

Notably, Microsoft’s latest quarter (ending December 31, 2025) delivered another set of strong results, with both revenue and earnings comfortably exceeding analyst expectations.

Total revenues reached $81.3 billion, reflecting a 16.7% YOY increase. The cloud segment fared better, growing 26% to $51.5 billion. Meanwhile, earnings per share rose 28.2% to $4.14, well ahead of the consensus estimate of $3.91. It marked the company’s ninth consecutive quarter of beating bottom-line forecasts.

Operating cash flow also showed significant strength, rising 60.5% to $35.8 billion over the prior-year period. The company ended the quarter with $24.3 billion in cash and equity, well ahead of $4.8 billion in short-term debt.

Still, the stock continues to trade higher. Its forward P/E, P/S, and P/CF of 24.75x, 9.30x, and 18.66x are all above the sector medians of 21.82x, 3.08x, and 17.57x, respectively.

At the same time, analyst sentiment is strongly positive. The stock has a consensus “Strong Buy” rating, with an average price target of $595.60, implying a near 45.64% upside from current levels. Out of 50 analysts covering MSFT, 41 offer a “strong buy”, four rate it a “moderate buy”, and five maintain a “hold”.

Now, we end our list with ServiceNow (NOW). Founded in 2004, ServiceNow provides a cloud platform that automates digital workflows across enterprises. Its main product is now the platform, which allows companies to automate and manage operational processes across departments.

Its market cap currently stands at $125.9 billion, while its stock is down 18.85% YTD.

However, despite all the whining and whining about software stocks in the market, the service’s results for the latest quarter exceeded expectations on both the bottom line and the top line. Total revenue for the quarter reached $3.6 billion, up 20.5% from last year. In this, core subscription revenue grew by 21% YOY to $3.5 billion.

In addition, earnings rose an even 25.3% to $0.92 per share over the same period, topping the consensus estimate of $0.89 per share. Notably, this was the company’s ninth consecutive quarter of earnings beat.

Additionally, outstanding performance obligations, a key metric used to gauge demand outlook, grew at a healthy pace of 26.5% to $28.2 billion from last year.

In terms of cash flows, net cash from operating activities for the quarter was $2.2 billion, up from $1.6 billion in the year-ago period. Overall, the company closed the quarter with a cash balance of $3.7 billion, which was well above short-term debt levels of just $112 million.

However, even after such a drastic drop in share price, ServiceNow continues to trade at high levels. Its forward P/E, P/S, and P/CF of 28.92x, 7.88x, and 19.6x are all above the sector medians of 21.82x, 3.08x, and 17.57x, respectively.

Considering all this, analysts have assigned an overall rating of “Strong Buy” to the stock, with an average target price of $194.46, which indicates a potential upside of about 56.4% from current levels. Of the 44 analysts covering the stock, 35 have a “strong-buy” rating, three have a “neutral-buy” rating, five have a “hold” rating, and one has a “strong sell” rating.

As of the date of publication, Pathikrit Bose did not have any positions (either directly or indirectly) in any of the securities mentioned in this article. All information and data in this article is for informational purposes only. This article was originally published on Barchart.com