February was a challenging month for the stock market, with concerns over economic data, weakening consumer confidence, and trade tariffs contributing to volatility. The S&P 500 declined by 1.4% over 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.
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.
Following these robust results, Evercore analyst Mark Mahaney reaffirmed his bullish stance on BKNG stock, raising his price target from $5,300 to $5,500. He pointed out that the company’s Q4 performance was strong across all regions and travel segments. Additionally, key business metrics such as bookings, revenue, and room nights showed acceleration.
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 remains confident that Booking Holdings can sustain long-term growth targets of 8% in bookings and revenue, along with 15% EPS growth. He also highlighted the company’s long-term investments in merchandising, flights, payments, connected travel experiences, and AI-driven services, as well as its growing online traffic.
Analyst Rating:
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.
Regarding Visa’s VAS business, the company provided deeper insights, projecting long-term revenue growth of 9%-12%. Visa also expects a shift in its revenue composition, with Commercial & Money Movement Solutions (CMS) and VAS becoming the primary revenue drivers, surpassing consumer payments over time. By comparison, these two segments contributed 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 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 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 over 9,400 analysts tracked by TipRanks, achieving a 74% success rate and an average return of 27.7% on his advice.
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.
