Investing Wisely During Market Turbulence

February presented difficulties for the stock market, as issues with economic indicators, reduced consumer confidence, and trade tariffs led to fluctuations. The S&P 500 dropped by 1.4% throughout the month.

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.

Keeping this perspective, here are three stocks suggested by top analysts, as reported by TipRanks, a platform that assesses analysts based on their performance history.

Booking Holdings (BKNG)

Leading the recommendations is Booking Holdings, a major force in the online travel sector. The company recently surprised the market with its strong fourth-quarter earnings, driven by ongoing robust travel demand. Booking Holdings is making active investments in its future expansion through various projects, such as incorporating generative AI to improve 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 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 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 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 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.

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.

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 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 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.

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 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 targets reaching $2.3 billion in annual recurring revenue and maintaining a 27% free cash flow margin by 2028, supported by ongoing platform consolidation efforts.

“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.