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 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)
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 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 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 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 second stock suggestion is Visa, a worldwide leader in payment processing. During its Investor Day on February 20, Visa detailed its growth approach and highlighted the revenue possibilities within its Value-Added Services (VAS) and other 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 anticipate Visa will sustain double-digit revenue expansion over time, aligning with consensus forecasts of approximately 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 recommendation for CYBR stock and raised his price target from $455 to $465. He stressed that CyberArk continues to be a major player in cybersecurity and has notably increased its Total Addressable Market (TAM) to $80 billion, from the prior $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.
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 robust enterprise adoption, strategic execution, and a rich growth pipeline, CyberArk is poised for continued 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 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 looking for long-term opportunities, these three stocks could provide attractive returns despite short-term market variations.