February proved to be a tough month for the stock market, as worries about economic reports, diminishing consumer trust, and trade duties led to fluctuations. The S&P 500 dropped by 1.4% during this period.
In this kind of market, investors are advised to concentrate on the stocks of firms capable of enduring short-term variability while seizing growth chances to achieve robust long-term returns. Gaining insights from leading Wall Street analysts, who perform thorough assessments of companies’ advantages, risks, and future possibilities, can offer significant value in pinpointing these stocks.
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.
After these solid outcomes, Evercore analyst Mark Mahaney maintained his positive outlook on BKNG shares, increasing his price target from $5,300 to $5,500. He noted that the company’s Q4 results were robust in every region and in all travel segments. Furthermore, essential business indicators like bookings, revenue, and room nights demonstrated growth.
Mahaney highlighted that although Booking Holdings is more than double the size of Airbnb and three times bigger than Expedia regarding room nights, it showcased quicker growth in these critical areas in Q4 2024. He credited this to the company’s scale, high margins, and seasoned management, labeling it as the top-quality online travel stock in the market.
“We continue to view BKNG as fairly valued, with sustainable premium EPS growth (15%), robust free cash flow generation, and a steady history of performance,” Mahaney remarked.
He is assured that Booking Holdings can maintain long-term growth goals of 8% in bookings and revenue, alongside 15% EPS growth. He also emphasized the company’s long-term investments in areas like merchandising, flights, payments, connected travel experiences, and AI-driven services, as well as 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.
In light of the event, BMO Capital analyst Rufus Hone reiterated his buy rating on Visa, keeping a price target of $370. He observed that Visa tackled numerous investor concerns, such as the growth potential in consumer payments and the firm’s capacity to maintain 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.
Concerning Visa’s VAS sector, the company offered further insights, forecasting long-term revenue growth of 9%-12%. Visa also anticipates a change in its revenue breakdown, with Commercial & Money Movement Solutions (CMS) and VAS emerging as the main revenue contributors, eventually overtaking consumer payments. In comparison, these two segments accounted for only about one-third of total revenue in fiscal year 2024.
Hone regards Visa as a fundamental investment in the U.S. financial industry.
“We anticipate Visa will sustain double-digit revenue growth over the long term, with consensus estimates near 10% growth,” he concluded.
Hone holds a position as #543 out of more than 9,400 analysts on TipRanks, with a 76% success rate and an average return of 16.7% from his recommendations.
CyberArk Software (CYBR)
The last stock recommendation is CyberArk Software, a frontrunner in identity security solutions. The company recently announced strong Q4 2024 results, showing ongoing demand for its cybersecurity products. On February 24, CyberArk conducted its Investor Day to address its financial outcomes and future growth prospects.
After the event, Baird analyst Shrenik Kothari reiterated his buy rating on CYBR stock and raised his price target from $455 to $465. He stressed that CyberArk continues to be a leading entity in cybersecurity and has substantially increased its Total Addressable Market (TAM) to $80 billion, from a previous $60 billion.
Kothari credited this TAM increase to growing demand for machine identity security, AI-driven security, and modern Identity Governance and Administration (IGA) solutions. He pointed out that machine identities have increased 45 times compared to human identities, leading to a significant security gap—a gap that CyberArk is aptly prepared to fill, particularly after its Venafi acquisition.
Moreover, CyberArk’s Zilla Security acquisition is assisting the company in bolstering its position within the IGA sector. Regarding AI-driven security, Kothari commended CyberArk’s innovation, especially the launch of CORA AI.
Looking ahead, management aims to achieve $2.3 billion in annual recurring revenue and a 27% free cash flow margin by 2028, driven by continued platform consolidation.
“With robust enterprise adoption, strategic execution, and a comprehensive growth pipeline, CyberArk is well-prepared 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 volatility continues to pose challenges for investors, but selecting fundamentally strong companies with long-term growth potential can mitigate risks. Booking Holdings, Visa, and CyberArk Software stand out as top picks from leading Wall Street analysts, thanks to their strategic positioning, financial resilience, and ongoing innovation.
For investors seeking long-term opportunities, these three stocks may offer attractive returns despite short-term market fluctuations.
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