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 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.
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)
First on the list is Booking Holdings, a dominant player in the online travel industry. The company recently posted impressive fourth-quarter earnings, exceeding market expectations, fueled by continued strength in travel demand. Booking Holdings is actively investing in its future growth through various initiatives, including the integration of generative AI to enhance services for both travelers and partners.
In light of these strong outcomes, Evercore analyst Mark Mahaney reiterated his optimistic view on BKNG stock, increasing his price target from $5,300 to $5,500. He noted that the firm’s Q4 performance was robust across all geographic areas and travel categories. Moreover, essential business metrics such as 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 priced, with sustained high EPS growth (15%), robust free cash flow production, and a reliable history of execution,” 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 is positioned at #26 out of more than 9,400 analysts followed 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.
After the event, BMO Capital analyst Rufus Hone reiterated his buy recommendation for Visa, keeping a price target of $370. He observed that Visa tackled several investor worries, such as the potential for expansion in consumer payments and the company’s capacity to maintain 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 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.
Following the event, Baird analyst Shrenik Kothari reaffirmed his buy rating on CYBR stock and increased his price target from $455 to $465. He emphasized that CyberArk remains a dominant force in cybersecurity and significantly expanded its Total Addressable Market (TAM) to $80 billion, up from $60 billion previously.
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.
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 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 strong enterprise adoption, disciplined execution, and a deep growth pipeline, CyberArk is well-positioned for sustained long-term growth,” Kothari stated.
Kothari is ranked #78 among TipRanks’ 9,400+ analysts, with a 74% success rate and an average return of 27.7% on his recommendations.
Final Thoughts
Market volatility remains a challenge for investors; however, 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 top Wall Street analysts, due to their strategic positioning, financial strength, and continuous innovation.
For those pursuing long-term opportunities, these three stocks may present attractive returns even amid short-term market volatility.