Turbulent Markets and Long-Term Investment Plans

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 this kind of market, investors are advised to concentrate on the stocks of firms capable of enduring short-term variability while seizing growth chances to achieve robust long-term returns. Gaining insights from leading Wall Street analysts, who perform thorough assessments of companies’ advantages, risks, and future possibilities, can offer significant value in pinpointing these stocks.

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.

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 highlighted that although Booking Holdings is more than double the size of Airbnb and triple that of Expedia in terms of room nights, it still showed quicker growth in these essential areas in Q4 2024. He attributed this success to the company’s extensive scale, high profit margins, and seasoned management team, dubbing it the premier online travel stock available.

“We still consider BKNG reasonably valued, with sustainable premium EPS growth (15%), strong free cash flow generation, and a consistent track record of execution,” Mahaney commented.

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 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 highlighted that Visa sees a $41 trillion opportunity in consumer payments, with $23 trillion still underserved by existing payment infrastructure, indicating significant 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 anticipate Visa will sustain double-digit revenue expansion over time, aligning with consensus forecasts of approximately 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 last stock recommendation is CyberArk Software, a frontrunner in identity security solutions. The company recently announced strong Q4 2024 results, showing ongoing demand for its cybersecurity products. On February 24, CyberArk conducted its Investor Day to address its financial outcomes and future growth prospects.

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 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 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 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 those pursuing long-term opportunities, these three stocks may present attractive returns even amid short-term market volatility.