Russ Cohen

The Bright Future of CyberArk (CYBR) Stock

CyberArk’s CYBR shares have surged 13.4% since the beginning of the year, a testament to its exceptional performance. This upward trajectory reflects investors’ unwavering faith in CYBR’s robust fundamentals and its dominant stance in the cybersecurity landscape.

Surpassing estimates in the last four quarters, CyberArk has managed an average surprise of 76.26%. With a long-term earnings growth projection of 20%, the company is on a steadfast growth path.

Currently holding a Zacks Rank #1 (Strong Buy) and boasting a Growth Score of B, CyberArk showcases promising growth prospects. Making use of Zacks’ meticulous methodology, stocks that combine a Zacks Rank #1 or 2 (Buy) with a Growth Score of A or B present robust investment opportunities.

CyberArk’s Firm Ground

The Zacks Consensus Estimate for fiscal 2024 foresees earnings of $1.76 per share, reflecting a 57.14% surge from the previous year. Looking ahead to fiscal 2025, the consensus estimate for earnings stands at $3.34 per share, signaling an impressive year-over-year growth of 90%.

Fueled by strong fundamentals, CyberArk emerges as a compelling investment option in the current landscape.

Solid Long-Term Potential

Amid a growing number of data breaches, the demand for CyberArk’s cybersecurity solutions is on the rise. The evolving landscape of cloud computing has ushered in more sophisticated cyber threats, underscoring the need for enhanced security measures. CyberArk benefits from the rising security budgets of clients striving to meet the escalating demands of security protocols, policies, and products.

CyberArk’s privileged access management (PAM), enterprise password vault, and privileged session manager have been pivotal in addressing various enterprise-level challenges, reinforcing CYBR’s competitive supremacy. Its suite of PAM solutions equips customers with a variety of tools to secure, manage, and monitor access to privileged accounts and activities.

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In response to the shift towards hybrid work policies, companies are doubling down on data security measures. To cater to this need, CyberArk has amped up its customer engagement by offering key products like Enterprise Password Vault and Privileged Session Manager.

Leveraging its expertise, CYBR has been expanding its customer base, driving top-line growth. A broad customer foundation not only allows the company to upsell to existing users but also facilitates the closure of significant deals, which, in turn, bolsters deferred revenues and visibility. Moreover, product updates translate to enhanced revenue streams as companies prioritize the upkeep of their threat management systems.

Reflecting on the fourth quarter of 2023, CyberArk’s revenues leaped 32% year over year to reach $223.1 million. Its non-GAAP earnings of 81 cents per share marked a significant improvement from the year-ago quarter’s earnings of 16 cents.

Exploring New Horizons

For investors seeking diversification within the broader technology sector, other top-ranked stocks include NVIDIA NVDA, Bentley Systems BSY, and Dell Technologies DELL, all currently holding a Zacks Rank #1. Notable advancements have been observed with NVDA soaring 226.6% in the past year, BSY expanding by 12.8%, and DELL witnessing a remarkable surge of 168.1%.