Handling Stock Market Fluctuations with Strategy

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)

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.

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

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 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 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 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.

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 growth to increasing demand for machine identity security, AI-driven security, and updated Identity Governance and Administration (IGA) solutions. He noted that machine identities have grown 45 times compared to human identities, leading to a significant security gap—one that CyberArk is well-equipped to fill, particularly after its Venafi acquisition.

Additionally, CyberArk’s Zilla Security acquisition is helping the company strengthen its presence in the IGA space. In terms of AI-driven security, Kothari praised CyberArk’s innovation, particularly the introduction 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 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.

Concluding Remarks

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