Boosted by 406% earnings growth last quarter and strong forecasts ahead, CyberArk Software has set up a new potential breakout after already fueling an impressive run. As a result, CYBR stock has secured its place on the latest list of new buys by the best mutual funds, alongside CrowdStrike, Palo Alto Networks, Zscaler and Nice.
CyberArk also earns a spot on the IBD Leaderboard watchlist. Joining the cadre of top cybersecurity stocks to watch, industry peer CrowdStrike has hacked its way onto the IBD 50 and IBD Sector Leaders, our most stringent stock screen.
Both CyberArk and CrowdStrike command the highest-possible 99 Composite Rating. That score indicates both cybersecurity firms are in the top 1% of all companies in terms of the most important stock-picking factors.
The cybersecurity software industry group ranks No. 41 out of the 197 groups IBD tracks.
CYBR Stock Vs. Cybersecurity Peers
In its latest report, CyberArk continued its impressive rebound in earnings, posting a 406% gain to 81 cents per share. Analysts expect those triple-digit gains to continue over the next two quarters.
On the sales front, CyberArk has now delivered three quarters of rising revenue growth, including a 32% year-over-year gain to $223.1 million in Q4.
Demand for shares of CYBR stock has mostly outpaced its industry peers. The stock's 1.5 up/down volume ratio tops all its group rivals, including CrowdStrike (1.2) and Palo Alto Networks (1.0).
| Company | Symbol | Comp Rating | EPS % Chg Last Qtr | EPS Est Cur Qtr % | EPS Rating | Up/Down Vol | RS Rating | SMR Rating | A/D Rating |
|---|---|---|---|---|---|---|---|---|---|
| CyberArk Software | CYBR | 99 | 406 | *262 | 82 | 1.5 | 94 | B | B |
| CrowdStrike | CRWD | 99 | 102 | 57 | 99 | 1.2 | 97 | A | C- |
| Nice | NICE | 97 | 16 | 21 | 94 | 1.3 | 89 | A | A- |
| Zscaler | ZS | 95 | 105 | 36 | 99 | 0.7 | 83 | A | D- |
| Palo Alto Networks | PANW | 93 | 39 | 387 | 98 | 1 | 75 | A | C |
*Based on comparison to prior-year quarter that showed a loss |
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CyberArk Ramps Up FedRAMP Cybersecurity
Headquartered in Israel, CyberArk specializes in privileged account access — high-level and highly sensitive electronic accounts with more access that analysts say are more targeted by hackers.
Last week, CyberArk announced that two of its leading software-as-a-service (SaaS) offerings have earned Federal Risk and Authorization Management Program (FedRAMP) High authorization to operate status. The two offerings are CyberArk Endpoint Privilege Manager and CyberArk Workforce Identity.
According to CyberArk, the authorization reinforces the cybersecurity firm's ability to help federal agencies and other public-sector organizations secure access to all corporate applications.
CYBR Stock Targets New Breakout
CyberArk joined the IBD Leaderboard watchlist as it cleared its buy zone from a 10-week moving average rebound entry. The stock is now also forming a consolidation pattern showing a 283 buy point.
That potential new entry comes after CyberArk already climbed 61% after breaking out of an early-stage flat base in November. The stock closed down for a third straight day Tuesday, but with each session in light, below-average volume. CyberArk closed with its base and buy point intact at 263.73.
Meanwhile, shares of Nice into and past a potential profit-taking zone. The stock retreated after spiking Monday, but eeked out a gain on Tuesday. CrowdStike continues to hold support at its 10-week line. Palo Alto Networks and Zscaler both remain well below that benchmark.
Follow Matthew Galgani on X (formerly Twitter) at @IBD_MGalgani.
