Strategies for Navigating Market Turbulence

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 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.

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)

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.

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 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 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 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 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.

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 pointed out that Visa identifies a $41 trillion opportunity in consumer payments, with $23 trillion still not fully reached by current payment systems, suggesting substantial 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 considers Visa a fundamental investment in the U.S. financial landscape.

“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.

After the event, Baird analyst Shrenik Kothari reiterated his buy rating on CYBR stock and raised his price target from $455 to $465. He stressed that CyberArk continues to be a leading entity in cybersecurity and has substantially increased its Total Addressable Market (TAM) to $80 billion, from a previous $60 billion.

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.

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.