Turbulent Markets and Long-Term Investment Plans

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 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 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 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 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.

In light of the event, BMO Capital analyst Rufus Hone reiterated his buy rating on Visa, keeping a price target of $370. He observed that Visa tackled numerous investor concerns, such as the growth potential in consumer payments and the firm’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.

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 considers Visa a fundamental investment in the U.S. financial landscape.

“We anticipate Visa will sustain double-digit revenue expansion over time, aligning with consensus forecasts of approximately 10% growth,” he concluded.

Hone is positioned at #543 among TipRanks’ 9,400+ analysts, achieving a 76% success rate and an average return of 16.7% on his recommendations.

CyberArk Software (CYBR)

The last stock selection is CyberArk Software, a frontrunner in identity security solutions. The company recently announced strong Q4 2024 results, demonstrating ongoing demand for its cybersecurity services. On February 24, CyberArk hosted its Investor Day to address its financial achievements and 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 attributed this TAM expansion to rising demand for machine identity security, AI-driven security, and modern Identity Governance and Administration (IGA) solutions. He highlighted the fact that machine identities have surged 45x compared to human identities, creating a major security gap—one that CyberArk is well-positioned to address, especially following 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 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.