Stock Market Volatility and Investment Choices

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 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)

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 priced, with sustained high EPS growth (15%), robust free cash flow production, and a reliable history of execution,» Mahaney remarked.

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 second stock recommendation is Visa, a global leader in payment processing. At its Investor Day on February 20, Visa outlined its growth strategy and emphasized the revenue potential in its Value-Added Services (VAS) and other business segments.

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 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 believe Visa will maintain double-digit revenue growth over the long term, with consensus expectations around 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 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 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 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 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 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.