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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 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 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 identifies a $41 trillion opportunity in consumer payments, with $23 trillion still not fully reached by current payment systems, suggesting substantial 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 considers Visa a fundamental investment in the U.S. financial landscape.
“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.
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 is targeting $2.3 billion in annual recurring revenue and a 27% free cash flow margin by 2028, supported by ongoing platform consolidation.
“With robust enterprise adoption, strategic execution, and a comprehensive growth pipeline, CyberArk is well-prepared 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 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 seeking long-term opportunities, these three stocks may offer attractive returns despite short-term market fluctuations.
