Industry Overview - The digital economy has elevated cybersecurity from a background IT concern to a top priority for businesses, as they face increasing cyber threats such as ransomware, data breaches, and phishing attacks [1] - The global cybersecurity market is projected to grow from $193.73 billion in 2024 to $562.72 billion by 2032, reflecting a strong CAGR of 14.3%, driven by the complexity of IT systems, tighter regulations, and the need to protect sensitive data [2] Technological Advancements - Traditional security tools are becoming inadequate against smarter and faster cyberattacks, leading to a shift towards artificial intelligence (AI) for proactive threat detection and response [3] - AI is being integrated into cybersecurity solutions to analyze large volumes of data, enabling companies to automate detection and response processes [3] Company Highlights - **CyberArk Software (CYBR)**: Focuses on identity security solutions, leveraging AI to enhance its leadership in the identity security space with innovations like the Secure AI Agent solution [6][8] - **Qualys (QLYS)**: Specializes in vulnerability management and cloud security, enhancing its AI capabilities to improve threat detection and remediation [9][10] - **Okta (OKTA)**: Concentrates on identity and access management, ramping up AI capabilities to address the complexities of digital identities, with innovations like Identity Threat Protection with Okta AI [12][13] - **A10 Networks (ATEN)**: Advances its AI-driven cybersecurity strategy through acquisitions and scalable solutions, positioning itself for growth in AI data center deployments [15][16][17] Market Positioning - CyberArk's unified platform offers critical capabilities for identity security, enhancing its market relevance and customer value proposition [7][8] - Qualys' AI-powered platform is expected to drive customer adoption and long-term revenue growth [11] - Okta's growing customer base, particularly among Fortune 500 clients, positions it as a compelling long-term investment [14] - A10 Networks is well-placed to benefit from the intersection of AI and cybersecurity, supported by strong margins and disciplined capital allocation [17]

Industry Overview - The Zacks Security industry is experiencing strong demand for cybersecurity products due to the increasing need for secure networks and cloud-based applications, particularly in hybrid work environments [1] - The surge in demand is driven by a significant rise in data breaches, leading companies to seek comprehensive IT security solutions [1] - The industry encompasses both on-premise and cloud-based security solutions, including identity access management, infrastructure protection, integrated risk management, malware analysis, and Internet traffic management [3] Major Trends - Rising cyber threats are escalating the need for robust security solutions, impacting not only individual companies but also national security [4] - The shift towards digital transformation and cloud migration is driving demand for cybersecurity solutions across various sectors, including education, healthcare, and entertainment [5] - Macroeconomic headwinds and geopolitical issues may lead enterprises to delay significant IT investments, potentially affecting the security market in the short term [6] Company Performance - Companies like CyberArk Software, Okta, and Qualys are benefiting from the trends in the cybersecurity market [2] - CyberArk Software is experiencing growth due to rising demand for privileged access security solutions, with a strong presence across various sectors [21] - Qualys is well-positioned to navigate market challenges with its diverse customer base and continuous innovation in information security solutions [28] - Okta's identity security solutions are gaining traction as organizations adopt digital transformation strategies, serving approximately 20,000 customers [33] Financial Outlook - The Zacks Security industry holds a Zacks Industry Rank of 19, placing it among the top 8% of nearly 250 Zacks industries, indicating solid near-term prospects [8] - The industry's bottom-line estimate for 2025 has increased to $1.45 from $1.35, reflecting analysts' optimism about earnings growth potential [10] - Over the past year, the Zacks Security industry has outperformed the broader Zacks Computer and Technology sector and the S&P 500, with a return of 38.3% compared to 11.8% and 11.9% respectively [13] Valuation Metrics - The industry is currently trading at a forward 12-month price-to-sales ratio of 14.77, significantly higher than the S&P 500's 5.12 and the sector's 6.37 [16] - Over the last five years, the industry's price-to-sales ratio has ranged from a high of 19.36X to a low of 6.92X, with a median of 12.56X [17]

Core Insights - Palo Alto Networks (PANW) and CyberArk Software (CYBR) are prominent U.S.-based cybersecurity firms focusing on protecting enterprises from digital threats, with PANW specializing in next-gen firewalls and cloud security, while CYBR leads in identity security and privileged access management [1][2] Industry Overview - The cybersecurity market is expected to grow at a CAGR of 12.63% from 2025 to 2030, driven by the rise of complex cyber attacks [2] CyberArk's Position - CyberArk is a leader in identity security, aligning its products with industry trends such as privileged access management and Zero Trust capabilities [4] - Recent acquisitions, including Venafi for $1.54 billion and Zilla Security for $165 million, have enhanced CyberArk's capabilities in machine identity management and broadened its addressable market [5] - CyberArk is advancing in agentic AI with its Secure AI Agent solution, expected to be available to customers later this year [6] - In Q1 2025, CyberArk reported a 43.4% increase in sales and a 30.7% rise in non-GAAP EPS, indicating strong financial growth [7] Palo Alto Networks' Position - PANW is recognized for its comprehensive cybersecurity solutions, including network security and cloud protection [8] - The company is focusing on areas like Zero Trust and private 5G security to support long-term growth [9] - PANW has upgraded its Prisma Cloud platform with generative AI capabilities, enhancing user interaction [10] - However, PANW faces challenges such as shortened contract durations and a slowdown in transitioning to cloud-based platforms, leading to a deceleration in revenue growth [12][13] Financial Comparisons - The Zacks Consensus Estimate for CyberArk's 2025 sales and EPS indicates year-over-year growth of 31.85% and 25.05%, respectively, while PANW's estimates are significantly lower at 14.4% and 15.14% [14] - Year-to-date, CyberArk shares have increased by 17.8%, compared to an 8.5% rise in Palo Alto Networks shares [17] - PANW trades at a forward sales multiple of 12.6X, while CYBR is at 13.71X, reflecting higher growth expectations for CyberArk despite its higher valuation [20] Conclusion - CyberArk is currently viewed as a more attractive investment due to its robust growth, strategic acquisitions, and focus on emerging threats, while PANW is experiencing near-term challenges [22][23]

CyberArk Software (CYBR) 2025 Conference Summary Industry Overview - **Industry**: Cybersecurity, specifically focusing on Identity Security and Privileged Access Management (PAM) [3][6] - **Market Trends**: Increasing attacks on both human and machine identities, with identity being recognized as the primary defense factor against adversaries [3][4][5] Core Company Insights - **Company Positioning**: CyberArk has evolved from traditional PAM to a broader identity security market, capturing significant demand due to the urgency of identity protection [3][5] - **Growth in PAM**: The core PAM market remains vibrant with substantial growth opportunities, particularly in modern use cases and among highly privileged users who are not fully secured [6][7][12] Customer Dynamics - **Customer Demand**: There is robust demand for identity security solutions, with customers increasingly seeking multi-product solutions that address high-priority areas [9][10] - **Expansion Opportunities**: CyberArk has established multi-year roadmaps with strategic customers, allowing for ongoing expansion within existing accounts [11][12] Competitive Landscape - **Emerging Competitors**: Non-traditional identity security players, such as CrowdStrike, are entering the identity space, but CyberArk differentiates itself through a preventative and deterministic approach to identity security [14][15][23] - **Consolidation of Trust**: Customers are looking for trusted vendors to reduce the number of cybersecurity vendors they engage with, emphasizing the importance of a unified identity security platform [20][21] Product Development and Innovation - **Identity Security Platform**: CyberArk is focused on creating a unified user experience across its identity security offerings, which is essential for effective deployment and management [22][19] - **Acquisition of Zillow**: The acquisition aims to enhance CyberArk's Identity Governance and Administration (IGA) capabilities, addressing the need for modern, efficient IGA solutions that integrate with existing identity security frameworks [40][41][44] Machine Identity and AI - **Machine Identity Security**: There is a growing recognition of the security importance of machine identities, with CyberArk positioned to address this need through its solutions [28][29][32] - **AI Integration**: CyberArk is actively working on incorporating AI into its solutions to enhance productivity and security, particularly in managing access to AI systems [34][36][38] Future Opportunities - **Market Potential**: There remains a significant opportunity for CyberArk to secure a large number of unsecured identities, both human and machine, as well as to expand its offerings in the evolving landscape of identity security [54][55] - **Long-term Vision**: The company is optimistic about its growth trajectory, with plans to deepen and broaden its solutions to meet the increasing demands of the market [55][56]

Key Takeaways Major Indexes recorded their strongest month in May since November 2023. Five Zacks Top Rank stocks with Momentum Score A are poised to benefit from June's bullish sentiment. Improved earnings estimates and sector strength support picks like CYBR, KGC, NWG, RYAAY, and PCTY.Wall Street saw an impressive rally in May after severe volatility in the previous two months. The three major stock indexes — the Dow, the S&P 500 and the Nasdaq Composite — were up 3.9%, 6.2% and 9.6%, respectively. The ...

CyberArk Software (CYBR) FY 2025 Conference May 28, 2025 01:50 PM ET Speaker0 That has been my room all day long. Speaker1 You've been sitting here? Speaker0 Yeah. Very good. All the great cybersecurity companies. Good afternoon, everybody. Thank you for joining us. My name is Shaul Real. I'm TD Cowen, cybersecurity research analyst. And we are delighted to host Eduardo, CyberArk's COO. Pleasure to have you. Speaker1 Good afternoon. Pleasure to be here. Thank you, Sean. Speaker0 So before touching on strate ...

CyberArk Software Ltd.'s (NASDAQ:CYBR) stock continues to thrive, driven by solid organic growth and acquisitions. The company's margins are also rebounding as its business model transition matures. While CyberArk's growth rate will moderate as it laps the acquisitions of Venafi and Zilla, the importance of identity security and the proliferation of machine identities ensure the company has a bright future. CyberArk's stock is up by close to 40% since I suggested that the company was a potential second-orde ...

Core Viewpoint - The article discusses the reliability of brokerage recommendations, particularly focusing on CyberArk (CYBR), and emphasizes the importance of using these recommendations in conjunction with other analytical tools like the Zacks Rank for making informed investment decisions [1][5]. Brokerage Recommendations - CyberArk has an average brokerage recommendation (ABR) of 1.13, indicating a consensus between Strong Buy and Buy, based on recommendations from 32 brokerage firms [2]. - Out of the 32 recommendations, 29 are classified as Strong Buy, accounting for 90.6%, while 2 are classified as Buy, making up 6.3% of the total [2]. Zacks Rank vs. ABR - The Zacks Rank, which is based on earnings estimate revisions, is a more reliable indicator of a stock's near-term price performance compared to the ABR, which is solely based on brokerage recommendations [8][9]. - The Zacks Rank is displayed in whole numbers (1 to 5) and maintains a balance among the ranks, while the ABR is typically shown in decimals [9][11]. Earnings Estimate Revisions - The Zacks Consensus Estimate for CyberArk has increased by 69.5% over the past month to $3.79, indicating growing optimism among analysts regarding the company's earnings prospects [13]. - This increase in earnings estimates has contributed to CyberArk receiving a Zacks Rank 1 (Strong Buy), suggesting a potential for significant stock price appreciation [14].

Core Insights - The article emphasizes the importance of thorough research and analysis in identifying undervalued investment opportunities, particularly in the Real Estate Investment Trusts (REITs) sector [1]. Group 1: Investment Philosophy - The company adheres to a fundamental investment philosophy that focuses on rigorous analysis and a long-term perspective [1]. - Key factors in the investment approach include financial health, competitive positioning, and management quality [1]. - The goal is to uncover opportunities where intrinsic value diverges from market price, especially in undervalued companies [1]. Group 2: Sector Focus - There is a specialized interest in the REIT sector, which is viewed as presenting abundant opportunities for investors due to its unique dynamics and potential for long-term growth [1]. - The analysis aims to identify undervalued REITs that are poised for substantial appreciation [1].

CyberArk Software Ltd. (CYBR) posted first-quarter 2025 non-GAAP earnings of 98 cents per share, which surpassed the Zacks Consensus Estimate by 24%. The figure improved 30.7% year over year.CyberArk’s first-quarter 2025 revenues of $317.6 million exceeded the consensus mark by 3.9%. The top line jumped 43.4% year over year, primarily driven by the company’s robust dominance in identity security and world-class execution levels at every step.The better-than-expected revenues led CyberArk to increase its 202 ...