Core Viewpoint - Analyst recommendations play a significant role in influencing stock prices, but their reliability is questionable due to potential biases from brokerage firms [1][5][10]. Brokerage Recommendations for CyberArk - CyberArk has an average brokerage recommendation (ABR) of 1.13, indicating a consensus between Strong Buy and Buy, based on 32 brokerage firms [2]. - Out of the 32 recommendations, 29 are Strong Buy and 2 are Buy, which accounts for 90.6% and 6.3% of all recommendations respectively [2]. Limitations of Brokerage Recommendations - Sole reliance on brokerage recommendations for investment decisions may not be wise, as studies show limited success in guiding investors towards stocks with the best price increase potential [5]. - Brokerage firms often exhibit a strong positive bias in their ratings due to vested interests, leading to a disproportionate number of Strong Buy recommendations compared to Strong Sell [6][10]. Zacks Rank as an Alternative Indicator - The Zacks Rank, which classifies stocks from 1 (Strong Buy) to 5 (Strong Sell), is based on earnings estimate revisions and is considered a reliable indicator of near-term price performance [8][11]. - The Zacks Rank is updated more frequently than the ABR, making it a timely tool for predicting future stock prices [12]. Earnings Estimate Revisions for CyberArk - The Zacks Consensus Estimate for CyberArk has increased by 41.9% over the past month to $3.81, indicating growing optimism among analysts regarding the company's earnings prospects [13]. - This increase in consensus estimates has resulted in a Zacks Rank 2 (Buy) for CyberArk, suggesting a positive outlook for the stock [14].

Group 1 - Creative Realities, Inc. (CREX) has shown a year-to-date return of 32.7%, significantly outperforming the average gain of 3.6% in the Computer and Technology sector [4] - The Zacks Rank for CREX is currently 1 (Strong Buy), indicating a positive outlook based on earnings estimates and revisions [3] - Over the past three months, the consensus estimate for CREX's full-year earnings has increased by 196.8%, reflecting improving analyst sentiment [3] Group 2 - CREX is part of the Internet - Software industry, which consists of 169 companies and currently ranks 52 in the Zacks Industry Rank, with an average gain of 15.4% this year [5] - Another notable stock in the Computer and Technology sector is CyberArk (CYBR), which has a year-to-date return of 19.2% and a Zacks Rank of 2 (Buy) [4][5] - The Security industry, to which CyberArk belongs, has seen a gain of 22.8% this year and is currently ranked 26 [6]

Group 1: Company Overview - CyberArk (CYBR) is gaining traction in the machine identity market, with the acquisition of Venafi acting as a key growth catalyst [1][4] - In Q1 of fiscal 2025, Venafi was included in nine of CyberArk's top 10 deals, enhancing cross-sell opportunities within its identity security platform [1][9] - Machine identities now outnumber human identities by more than 80 to 1, up from a 45:1 ratio a year ago, indicating a significant shift in enterprise IT security needs [3][9] Group 2: Notable Wins and Market Expansion - A Fortune 100 financial services firm expanded its relationship with CyberArk by entering into a multi-six-figure Annual Contract Value (ACV) deal for certificate lifecycle management and PKI offerings [2] - PDS Health, a long-time customer, also expanded its use of Venafi's solutions in a six-figure ACV deal during the first quarter [2] - CyberArk estimates that the acquisition of Venafi will expand its total addressable market by $10 billion to approximately $60 billion [4] Group 3: Competitive Landscape - Competitors like CrowdStrike and Palo Alto Networks are also evolving their platforms to meet enterprise security demands, with CrowdStrike enhancing its identity security platform using AI solutions [5] - Palo Alto Networks has seen strong momentum, closing over 90 net new platform deals in Q3 of fiscal 2025, reflecting its platformization strategy [6] Group 4: Financial Performance and Valuation - CyberArk shares have gained 19.4% year to date, slightly underperforming the Zacks Security industry's growth of 20.2% [7] - The company trades at a forward price-to-sales ratio of 13.16, which is below the industry's average of 14.5 [11] - The Zacks Consensus Estimate for CyberArk's earnings implies a year-over-year increase of approximately 25.74% for 2025 and 25.72% for 2026, although estimates have been revised downward recently [14]

Company Performance - CyberArk's stock closed at $383.05, down 1.4% from the previous trading session, underperforming the S&P 500's loss of 0.22% [1] - Over the past month, CyberArk's shares have increased by 3.92%, outperforming the Computer and Technology sector's gain of 2.98% and the S&P 500's gain of 0.45% [1] Upcoming Earnings - The upcoming earnings per share (EPS) for CyberArk is projected at $0.79, indicating a 46.30% increase compared to the same quarter last year [2] - Revenue for the upcoming quarter is estimated at $315.43 million, reflecting a 40.37% rise from the equivalent quarter last year [2] Fiscal Year Estimates - For the entire fiscal year, earnings are projected at $3.81 per share and revenue at $1.32 billion, representing increases of 25.74% and 31.88% respectively from the prior year [3] - Recent changes in analyst estimates for CyberArk are important as they often reflect shifting business dynamics, with positive revisions indicating a favorable business outlook [3][4] Zacks Rank and Performance - The Zacks Rank system, which incorporates estimate changes, currently ranks CyberArk as 2 (Buy), with 1 stocks historically returning an average of +25% annually since 1988 [5] - Over the last 30 days, the Zacks Consensus EPS estimate for CyberArk has increased by 32.12% [5] Valuation Metrics - CyberArk is currently trading at a Forward P/E ratio of 102.04, which is higher than the industry average of 74.67, suggesting a premium valuation [6] - The company has a PEG ratio of 4.2, compared to the Security industry's average PEG ratio of 3.03, indicating a higher valuation relative to expected earnings growth [7] Industry Context - The Security industry, part of the Computer and Technology sector, holds a Zacks Industry Rank of 27, placing it in the top 11% of over 250 industries [8] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [8]

Core Insights - CyberArk (CYBR) is scaling its identity security platform, reporting Annual Recurring Revenues (ARR) of $1.215 billion and net new ARR of $46 million in Q1 FY25, with growth partly driven by the acquisition of Zilla Security [1][10] Company Performance - Zilla Security contributed approximately $5 million in ARR during the first quarter, including a significant win in the financial services sector, where a customer replaced its legacy identity governance vendor with Zilla [2][10] - Customer feedback on Zilla has been overwhelmingly positive, particularly regarding its ability to simplify access reviews and automate provisioning [2][10] Product Development - Zilla enhances CyberArk's identity security platform with AI-powered identity governance and administration (IGA) capabilities, enabling scalable automation for identity compliance and provisioning [3][4] - Zilla's offerings, including Zilla Comply and Zilla Provisioning, are becoming integral to CyberArk's platform, with expectations for more significant contributions to sales in late 2025 and into 2026 [4][10] Competitive Landscape - Competitors like Palo Alto Networks (PANW) and Zscaler (ZS) are also evolving their platforms to meet enterprise security demands, with PANW closing over 90 new platform deals and Zscaler reporting a 23% year-over-year increase in ARR to $2.9 billion [5][6][7] Valuation and Estimates - CyberArk's shares have gained 16.6% year to date, compared to the Zacks Security industry's growth of 21.3% [8] - The company trades at a forward price-to-sales ratio of 13.37, below the industry's 14.65 [12] - The Zacks Consensus Estimate for CyberArk's earnings implies a year-over-year increase of approximately 25.74% for 2025 and 25.72% for 2026, although estimates have been revised downward recently [15]

Core Thesis - CyberArk Software Ltd. (NASDAQ: CYBR) is expected to maintain a growth rate of approximately 30% in the coming years due to a large Total Addressable Market (TAM) and significant cross-sell potential [1] Investment Approach - The investment strategy focuses on identifying undervalued companies with long-term growth potential, blending value investing principles with a long-term growth focus [1] - The belief is in purchasing quality companies at a discount to their intrinsic value and holding them to allow for compounding of earnings and shareholder returns [1]

Stock Picks Overview - The report highlights two Zacks Rank number one strong buy stocks poised for positive returns [1] - The featured stocks are selected by strategists Dave Bartoziaak and Tracy Ryneck [1] - Zacks covers thousands of companies, but only about 240 to 250 receive a Zacks Rank number one [2] Dave's Pick: Fintech "Dave" - Dave operates in the technology services industry, specifically fintech, focusing on banking the underserved [1] - Dave's EPS estimates are north of $10 per share, driving the stock up over 200% [1] - The stock trades at 2384% times earnings, higher than the industry average of 94% but in line with the S&P 500 at 2242% [1] - Current year revenue growth is 36%, with next year projected at 24% [1] - Current year EPS growth is estimated at 66%, slowing to 32% next year, reaching $1156 [1] - The company has consistently beaten earnings estimates by nearly a dollar each quarter [1] Tracy's Pick: CyberArk Software (CYBR) - CyberArk Software (CYBR) is in the cyber security sector, focusing on identity security [1] - Subscription revenue grew 60% in the first quarter [1] - The company gave free cash flow guidance of $300 million to $310 million for the full year, with 30% free cash flow margins in the first quarter [1] - Earnings estimates have been revised upwards, with 12 up in the last 60 days and three even in the last 30 days [2] - Double-digit earnings growth is expected: 257% for this year and 257% for next year [2] - Sales are projected to grow 319% this year and almost 19% next year [2] - The stock's PE is 101 times, with a PEG of 41%, reflecting a willingness to pay for growth [2] - Year-to-date, the stock is up 19% versus 33% for the S&P 500; over the last year, it's up 57% compared to the S&P's 104% [2]

Core Insights - CyberArk Software (CYBR) shares have increased by 10.7% in the past month, outperforming the Zacks Security industry and peers like Palo Alto Networks, Fortinet, and SentinelOne [1][6] - The Zacks Security industry has returned 2.6% in the same period, with Palo Alto Networks gaining 1%, while Fortinet and SentinelOne lost 3.7% and 13.7%, respectively [1] Company Performance - CyberArk's subscription ARR grew by 65% year-over-year in Q1 2025, indicating strong demand and continued innovation [5] - Projected revenues for 2025 are between $1.313 billion and $1.323 billion, reflecting a year-over-year growth of 31.89% [6][8] Strategic Developments - CyberArk has made significant acquisitions, including Venafi for $1.54 billion and Zilla Security for $165 million, enhancing its capabilities in machine identity management and broadening its security offerings [6][7] - The integration of AI solutions like CORA AI and Secure AI Agents into its identity security platform allows CyberArk to secure a wide range of identities, including human, AI, and machine [3][4] Market Position - CyberArk serves over 5,400 global businesses, including more than 50% of the Fortune 500 and 35% of the Global 2000 companies, bolstered by partnerships with tech giants like Microsoft, AWS, and Google Cloud [9][10] - The identity security and access management market is projected to grow at a CAGR of 8.4% from 2024 to 2029, providing ample growth opportunities for CyberArk and its competitors [11] Valuation Metrics - CyberArk trades at a forward price-to-sales ratio of 13.76X, which is below the industry average of 14.77X and competitive with peers like Palo Alto Networks, Fortinet, and SentinelOne [12] - The stock is currently trading above its 50-day and 200-day moving averages, indicating a bullish trend [15]

Core Insights - CyberArk (CYBR) is enhancing its identity security platform with AI integration, including the Secure AI Agents Solution and CORA AI, in collaboration with Accenture [1][4][10] Company Developments - The Secure AI Agent solution protects AI Agents from prompt injection, credential leakage, and permission abuse, while CORA AI acts as the intelligence engine within this solution [2] - The integration of CORA AI and Secure AI Agents allows CyberArk to secure human, AI, and machine identities, covering workforce access, IT systems, developer environments, and workload access [3][10] - CyberArk's subscription Annual Recurring Revenue (ARR) grew 65% year-over-year in Q1 2025, indicating strong demand for its cybersecurity solutions [4][10] Financial Performance - For 2025, CyberArk expects revenues between $1.313 billion and $1.323 billion, with a Zacks Consensus Estimate of $1.32 billion, reflecting a year-over-year growth of 31.89% [5] - The Zacks Consensus Estimate for CyberArk's fiscal 2025 and 2026 earnings implies year-over-year growth of 25.41% and 25.76%, respectively, with upward revisions in the past 30 days [12] Market Position - The identity security and access management market is projected to grow at a CAGR of 8.4% from 2024 to 2029, providing ample growth opportunities for CyberArk and its competitors like CrowdStrike and Okta [8] - CyberArk's shares have gained 19.8% year-to-date, slightly underperforming the Zacks Security industry's growth of 20.2% [9] Valuation Metrics - CyberArk trades at a forward price-to-sales ratio of 13.66X, which is lower than the industry's average of 14.54X, indicating a potentially attractive valuation [11]

Company Overview - CyberArk shares have increased by approximately 11.5% since the last earnings report, outperforming the S&P 500 [1] - The most recent earnings report is essential for understanding the key drivers behind this performance [1] Earnings Estimates - Estimates for CyberArk have remained flat over the past month, with a consensus estimate shift of 22.22% [2] VGM Scores - CyberArk has a strong Growth Score of A but a low Momentum Score of D, and a Value Score of F, resulting in an aggregate VGM Score of D [3] Outlook - CyberArk holds a Zacks Rank of 1 (Strong Buy), indicating expectations for above-average returns in the coming months [4] Industry Performance - CyberArk is part of the Zacks Security industry, where Qualys has seen a 3.2% gain over the past month [5] - Qualys reported revenues of $159.9 million for the last quarter, reflecting a year-over-year increase of 9.7% [5] - Qualys is expected to post earnings of $1.47 per share for the current quarter, indicating a 3.3% decrease from the previous year [6]