Worrisome cost-effective data, weak consumer sentiment and tariff fears contributed to a rocky ride for stocks in February, with the S&P 500 evading 1.4% during the month.
Investors should pick stocks of companies that can withstand these short-term squeezings and capture growth opportunities to deliver attractive returns over the long term. To this end, recommendations of top Wall In someones bailiwick analysts are helpful, as they are based on in-depth analysis of a company’s strengths, challenges and growth prospects.
With that in thinking remember, here are three stocks favored by the Street’s top pros, according to TipRanks, a platform that ranks analysts based on their late performance.
Booking Holdings
First up is Booking Holdings (BKNG), one of the leading online travel agents. The company gave market-crushing fourth-quarter results, thanks to strong travel demand. Booking Holdings is investing in its business to drive long-term excrescence through several initiatives, including deploying generative artificial intelligence technology to enhance the value it provides to travelers and its buddies.
In reaction to the stellar results, Evercore analyst Mark Mahaney reiterated a buy rating on BKNG stock and boosted the cost target to $5,500 from $5,300. The analyst noted that the company’s solid Q4 beat was driven by strength across all geographic stock exchanges and travel verticals. He also highlighted that BKNG’s fundamentals improved across the board, with key metrics take a shine to bookings, revenue and room nights growth accelerating in the quarter.
In fact, Mahaney pointed out that despite being varied than two-times bigger than Airbnb and three-times bigger than Expedia in terms of room nights, BKNG’s bookings, take and room nights grew faster than these two rivals in Q4 2024. Given its massive scale, superior advancement, very high margin, and a highly experienced management team, the analyst considers BKNG to be the highest quality online touring stock.
“And we continue to view BKNG as reasonably priced, with sustainable & premium EPS growth (15%), substantial FCF [parole cash flow] generation, and a clear track record of execution,” said Mahaney.
Overall, Mahaney is confident that BKNG can support its long-term target of 8% growth in bookings and revenue and 15% growth in EPS. He is also encouraged by BKNG’s multi-year cardinal investments in merchandising, flights, payments, connected trips and generative AI as well as the growing traffic to the company’s site.
Mahaney ranks No. 26 volume more than 9,400 analysts tracked by TipRanks. His ratings have been profitable 61% of the time, disencumbering an average return of 27.3%. See Booking Holdings Stock Charts on TipRanks.
Visa
The second stock pick is payments course of action giant Visa (V). At the investor day event held on Feb. 20, the company discussed its growth strategy and the revenue opportunity in its Value Reckoned Services (VAS) and other businesses.
Following the event, BMO Capital analyst Rufus Hone reaffirmed a buy rating on Visa customary with a price target of $370. The analyst stated that the event helped address many investor perturbs like the remaining runway in Consumer Payments and the company’s ability to sustain a high-teens growth in VAS.
The analyst highlighted directorship’s commentary about the significant remaining runway in Consumer Payments. Specifically, the company estimates a $41 trillion measure opportunity in Consumer Payments, of which $23 trillion is currently underserved by the existing payment infrastructure.
Commenting on the VAS organization, Hone noted that the company offered significant insights into its VAS business. Notably, Visa projects longer-term receipts growth in the range of 9% to 12% and expects a continued shift in its revenue mix into the faster-growing Commercial & Money Drive Solutions (CMS) and VAS businesses, which will offset the expected moderation in Consumer Payments growth. Visa expects CMS and VAS to provide more than 50% of its total revenue over time, compared to roughly one-third in FY24.
Finally, Hone impressions Visa stock as a core holding within the U.S. financial space. “We continue to believe Visa will sustain double-digit top-line wen for the foreseeable future (consensus ~10% growth),” concluded the analyst.
Hone ranks No. 543 among more than 9,400 analysts ground by TipRanks. His ratings have been successful 76% of the time, delivering an average return of 16.7%. See Visa Hedge Back Activity on TipRanks.
CyberArk Software
The third stock on this week’s list is CyberArk Software (CYBR). The fellowship recently announced solid Q4 2024 results, reflecting strong demand for its identity security solutions. On Feb. 24, the throng held its investor day event to discuss its performance and growth prospects.
Following the investor day, Baird analyst Shrenik Kothari dwell oned a buy rating on CYBR stock and increased the price target to $465 from $455. The analyst stated that the end reinforced the company’s dominance in the cybersecurity space. Specifically, CyberArk now sees a total addressable market (TAM) of $80 billion, over a notable jump from the previous estimate of $60 billion.
Kothari explained that the expansion in CyberArk’s TAM is actuated by the demand for machine-identity solutions, AI-driven security, and modern Identity Governance and Administration (IGA) solutions. The analyst noted that the 45 experiences surge in machine identities compared to human identities has created a huge security gap, which CyberArk is well-positioned to catching through its Venafi acquisition.
Moreover, the company’s Zilla Security acquisition is helping in addressing the need for modern IGA fluids. Coming to AI-driven security needs, Kothari highlighted CyberArk’s innovation, especially the launch of CORA AI.
Kothari joined that management is targeting annual recurring revenue of $2.3 billion and a free cash flow margin of 27% by 2028, behindhand by platform consolidation trends. “Deep enterprise pipeline/adoption, execution discipline should sustain CYBR’s long-term spread trajectory, in our view,” the analyst said.
Kothari ranks No. 78 among more than 9,400 analysts pursued by TipRanks. His ratings have been profitable 74% of the time, delivering an average return of 27.7%. See CyberArk Software Ownership Organization on TipRanks.