Strategies for Navigating 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 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.

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)

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 three times bigger than Expedia regarding room nights, it showcased quicker growth in these critical areas in Q4 2024. He credited this to the company’s scale, high margins, and seasoned management, labeling it as the top-quality online travel stock in the market.

“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 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 Rating:

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 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 perceives a $41 trillion opportunity in consumer payments, with $23 trillion still not fully served by current payment infrastructure, suggesting considerable 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 sees Visa as a cornerstone investment within the U.S. financial sector.

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

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 over 9,400 analysts tracked by TipRanks, achieving a 74% success rate and an average return of 27.7% on his advice.

Final Thoughts

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 seeking long-term opportunities, these three stocks may offer attractive returns despite short-term market fluctuations.