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 such an environment, investors should focus on stocks of companies that can withstand short-term fluctuations while capitalizing on growth opportunities to deliver strong long-term returns. To identify such stocks, insights from top Wall Street analysts—who conduct in-depth evaluations of companies’ strengths, risks, and future potential—can be highly valuable.
With this in mind, here are three stocks recommended by leading analysts, according to TipRanks, a platform that ranks analysts based on their track record.
Booking Holdings (BKNG)
The first stock mentioned is Booking Holdings, a major force in the online travel sector. The company recently announced remarkable fourth-quarter earnings, surpassing market forecasts, driven by ongoing robust travel demand. Booking Holdings is proactively investing in its future expansion through various strategies, 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 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 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 Rating:
Mahaney holds the #26 spot among more than 9,400 analysts monitored by TipRanks, boasting a 61% success rate and an average return of 27.3% on his advice.
Visa (V)
The next stock suggestion is Visa, a worldwide powerhouse in payment processing. During its Investor Day on February 20, Visa detailed its growth plan and highlighted the revenue prospects within its Value-Added Services (VAS) and additional business areas.
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 pointed out that Visa perceives a $41 trillion opportunity in consumer payments, with $23 trillion still not fully served by current payment infrastructure, suggesting considerable 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 sees Visa as a cornerstone investment within the U.S. financial sector.
“We believe Visa will maintain double-digit revenue growth over the long term, with consensus expectations around 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 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 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.
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 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 strong enterprise adoption, disciplined execution, and a deep growth pipeline, CyberArk is well-positioned for sustained 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.
