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.
Considering this, here are three stocks endorsed by top analysts, as listed by TipRanks, a platform that evaluates analysts based on their performance history.
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 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 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 business, the company offered more detailed insights, forecasting long-term revenue growth of 9%-12%. Visa also anticipates a change in its revenue structure, with Commercial & Money Movement Solutions (CMS) and VAS emerging as the main revenue contributors, eventually overtaking consumer payments. For context, these two segments made up just around 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 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 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.
Furthermore, CyberArk’s Zilla Security acquisition is aiding the company in bolstering its position within the IGA sector. Regarding AI-driven security, Kothari commended CyberArk’s innovation, notably 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 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.
Concluding Remarks
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 investors looking for long-term opportunities, these three stocks could provide attractive returns despite short-term market variations.