by February presented difficulties for the stock market, as issues with economic indicators, reduced consumer confidence, and trade tariffs led to fluctuations. The S&P 500 dropped by 1.4% throughout the month.
In such a climate, investors are advised to concentrate on shares of companies capable of enduring temporary market swings while seizing growth prospects to achieve robust long-term gains. For identifying these stocks, insights from leading Wall Street analysts—who perform comprehensive assessments of companies’ advantages, dangers, and future prospects—can prove extremely helpful.
Keeping this perspective, here are three stocks suggested by top analysts, as reported by TipRanks, a platform that assesses analysts based on their performance history.
Booking Holdings (BKNG)
Leading the recommendations is Booking Holdings, a major force in the online travel sector. The company recently surprised the market with its strong fourth-quarter earnings, driven by ongoing robust travel demand. Booking Holdings is making active investments in its future expansion through various projects, such as incorporating generative AI to improve services for both travelers and partners.
Following these robust results, Evercore analyst Mark Mahaney reaffirmed his bullish stance on BKNG stock, raising his price target from $5,300 to $5,500. He pointed out that the company’s Q4 performance was strong across all regions and travel segments. Additionally, key business metrics such as bookings, revenue, and room nights showed acceleration.
Mahaney highlighted that although Booking Holdings is more than double the size of Airbnb and triple that of Expedia in terms of room nights, it still showed quicker growth in these essential areas in Q4 2024. He attributed this success to the company’s extensive scale, high profit margins, and seasoned management team, dubbing it the premier online travel stock available.
“We still consider BKNG reasonably valued, with sustainable premium EPS growth (15%), strong free cash flow generation, and a consistent track record of execution,” Mahaney commented.
He stays assured that Booking Holdings can maintain long-term growth goals of 8% in bookings and revenue, coupled with 15% EPS growth. He also emphasized the company’s long-term investments in merchandising, flights, payments, integrated travel experiences, and AI-powered services, along with its increasing online traffic.
Analyst Ranking:
Mahaney is ranked #26 among over 9,400 analysts tracked by TipRanks, with a 61% success rate and an average return of 27.3% on his recommendations.
Visa (V)
The second stock recommendation is Visa, a global leader in payment processing. At its Investor Day on February 20, Visa outlined its growth strategy and emphasized the revenue potential in its Value-Added Services (VAS) and other business segments.
Following the event, BMO Capital analyst Rufus Hone reaffirmed his buy rating on Visa, maintaining a price target of $370. He noted that Visa addressed several investor concerns, including the potential for growth in consumer payments and the company’s ability to sustain high-teens growth in VAS.
Hone highlighted that Visa sees a $41 trillion opportunity in consumer payments, with $23 trillion still underserved by existing payment infrastructure, indicating significant growth potential.
Regarding Visa’s VAS business, the company provided deeper insights, projecting long-term revenue growth of 9%-12%. Visa also expects a shift in its revenue composition, with Commercial & Money Movement Solutions (CMS) and VAS becoming the primary revenue drivers, surpassing consumer payments over time. By comparison, these two segments contributed only about one-third of total revenue in fiscal year 2024.
Hone sees Visa as a cornerstone investment within the U.S. financial sector.
“We anticipate Visa will sustain double-digit revenue growth over the long term, with consensus estimates near 10% growth,” he concluded.
Hone is ranked #543 among TipRanks’ 9,400+ analysts, with a 76% success rate and an average return of 16.7% on his recommendations.
CyberArk Software (CYBR)
The final stock pick is CyberArk Software, a leader in identity security solutions. The company recently posted solid Q4 2024 results, reflecting continued demand for its cybersecurity offerings. On February 24, CyberArk held its Investor Day to discuss its financial performance and growth outlook.
After the event, Baird analyst Shrenik Kothari reiterated his buy recommendation for CYBR stock and raised his price target from $455 to $465. He stressed that CyberArk continues to be a major player in cybersecurity and has notably increased its Total Addressable Market (TAM) to $80 billion, from the prior $60 billion.
Kothari credited this TAM growth to increasing demand for machine identity security, AI-driven security, and updated Identity Governance and Administration (IGA) solutions. He noted that machine identities have grown 45 times compared to human identities, leading to a significant security gap—one that CyberArk is well-equipped to fill, particularly after its Venafi acquisition.
Additionally, CyberArk’s Zilla Security acquisition is helping the company strengthen its presence in the IGA space. In terms of AI-driven security, Kothari praised CyberArk’s innovation, particularly the introduction of CORA AI.
Looking forward, management targets reaching $2.3 billion in annual recurring revenue and maintaining a 27% free cash flow margin by 2028, supported by ongoing platform consolidation efforts.
“With robust enterprise adoption, strategic execution, and a rich growth pipeline, CyberArk is poised for continued long-term growth,” Kothari stated.
Kothari holds the #78 position among TipRanks’ 9,400+ analysts, with a 74% success rate and an average return of 27.7% on his recommendations.
Final Thoughts
Market fluctuations persist in creating challenges for investors, but choosing companies with solid fundamentals and long-term growth prospects can help reduce risks. Booking Holdings, Visa, and CyberArk Software are highlighted as top recommendations from leading Wall Street analysts, due to their strategic positioning, financial stability, and continuous innovation.
For investors looking for long-term opportunities, these three stocks could provide attractive returns despite short-term market variations.
