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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.
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)
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.
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 emphasized that despite being more than twice the size of Airbnb and three times larger than Expedia in terms of room nights, Booking Holdings demonstrated faster growth in these key areas during Q4 2024. He attributed this to the company’s scale, high margins, and experienced management, calling it the highest-quality 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 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 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 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 regards Visa as a fundamental investment in the U.S. financial industry.
“We anticipate Visa will sustain double-digit revenue expansion over time, aligning with consensus forecasts of approximately 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 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 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 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.
