Bull of the Day: CyberArk Software (CYBR)

CyberArk Software Company Overview

Zacks Rank #1 (Strong Buy) stock CyberArk Software (CYBR) is an Israeli-based company that provides its clients with information technology security solutions. CyberArk is a vital security to more than 5,400 global businesses, including over half of the Fortune 500 and over 35% of Global 2000 companies. The company specializes in Privileged Access Management (PAM), which allows businesses to secure, manage, and monitor identities (human and machine) that have elevated or “privileged” access to critical systems and sensitive data. CYBR’s PAM cyber security technology acts as a gatekeeper that stops unauthorized access and malicious activities by controlling who can access what, when, and for how long, dramatically decreasing the risk of cyberattacks through false identities and backdoors.

Global Cyber Data Breaches are Rising

Over the past decade, one of the most consistent, robust, and predictable trends has been that the number of data breaches has increased. Since 2012, the number of data breaches in the United States has increased annually, soaring from 444 in 2012 to over 3,000 in 2023. The advent of cloud computing has dramatically increased global cybersecurity needs. Though the industry is competitive, CyberArk’s security infrastructure helps the company carve out a niche by allowing companies to protect against, detect, and respond to cyber-attacks before sensitive data is compromised. Because of its unique niche and powerful MOAT, CYBR has been one of the best ways to bet on growing cyber security demand and will continue to be in the future. In fact, CYBR has tripled its annual revenue from ~$400 million in 2020 to an expected ~1.2 billion in 2025.

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The Advent of “BYOD” & Hybrid Work Boosts CyberArk

Cyber security became more complicated after the COVID-19 pandemic forced many companies to adopt work-from-home policies. Not only did employees begin working from remote locations, many companies began allowing employees to BYOD (bring your own device). With more employees out of the office than ever, companies are forced to enforce stricter data-security measures – a trend unlikely to end any time soon.

CYBR Beats the Street

CyberArk has not only grown revenue at a brisk and consistent pace, but has also consistently beat Wall Street analyst expectations. The company has beaten Zacks Consensus Analyst Estimates for five consecutive quarters, with an average surprise of 44.33% over the past four quarters.

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CYBR Carves Out a Cup-with-Handle Base Structure

CYBR shares have exhibited extreme relative price strength and outperforms over 90% of S&P 500 stocks. In addition, the stock is building a picture-perfect cup-with-handle base structure.

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CYBR has a Strong Balance Sheet

CyberArk has a strong balance sheet, with ample liquidity, and no debt obligations. The company’s increasing liquidity illustrates that management is making sound investments and cash flow is moving in the right direction.

Bottom Line

With the rise of cloud computing and hybrid work models, cyber security threats are soaring. With its strong foothold in the Privileged Access Management (PAM) niche, CyberArk Software is poised to continue to be a leader in its industry.

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