We recently compiled a list of the 10 Stocks on Jim Cramer's Radar.In this article, we are going to take a look at where CyberArk Software Ltd. (NASDAQ:CYBR) stands against the other stocks on Jim Cramer's radar.
Jim Cramer, the host of Mad Money, recently shared his outlook for Wall Street, focusing on earnings reports. On Friday, he highlighted how the S&P 500 surged toward 6,000 in almost a straight line, a remarkable rally driven by overwhelming buying and a lack of selling. Cramer noted the market’s performance, pointing out that the Dow rose by 260 points, the S&P gained 0.38%, and the Nasdaq advanced 0.09%, with all major indices closing at new record highs.
He described Friday as another impressive session, adding that it marked a historic moment. Cramer reiterated his point, stating:
“This is ladies and gentlemen, a historic move we are witnessing, fueled by an election where voters chose a candidate who is pro-growth, pro-higher stock prices, pro-lower interest rates, and pro-lower taxes… Trump is the most explicitly pro-stock market president in history.”
Cramer went on to say that now that Trump has won, the benefits are clear across many sectors. He cited tech, oil, pharmaceuticals, consumer goods, and financials as prime examples of sectors seeing strong performance. He emphasized that these gains were driven by money managers who feared missing out on the market’s upward trajectory and were unwilling to sell, knowing they might not have enough stocks in their portfolios. Cramer also predicted that we would soon witness a surge in mergers and acquisitions.
“At the same time, we're about to see a wave of takeovers as the antitrust regulators will stop trying to block every deal under the sun because a new broom is gonna sweep clean.”
Cramer stressed the importance of looking at the market on a sector-by-sector basis. He noted that the tech sector had taken a breather on Friday. In the coming days, he suggested that retailers might surge, followed by financials and then industrials. He described this cycle of sector rotations as part of an "incredibly bullish, virtuous circle" of market gains. While Cramer acknowledged that stocks had performed well under President Biden, he pointed out that Biden didn't seem to place much importance on the stock market during his tenure.
“For him, it was an abstraction,” Cramer remarked, adding that this stance was changing with the current administration. In conclusion, Cramer made it clear that stocks were about to have a true champion in the White House once again.
“Stocks are about to have a champion in the White House again, even if you might think they aren’t worthy of a presidential supporter. I say get used to it, even though the buying’s started already, because we got a lot more room to run.”
Our Methodology
For this article, we compiled a list of 10 stocks that were discussed by Jim Cramer during the episode of Mad Money on November 8 and listed the stocks in the order that Cramer mentioned them.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
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Cramer said that CyberArk Software Ltd. (NASDAQ:CYBR) has reported good numbers previously and remarked on cybercrime being rampant.
“CyberArk reports Wednesday morning and this is an exclusive cybersecurity company that guards what’s called the keys… of the digital kingdom that is. I think it's put up some great numbers.... Cybercrime shows no signs of abating whatsoever. How terrific is this sector for stock performance? You know that we own both CrowdStrike and Palo Alto Networks for the Charitable Trust. They do compete, but there's so much business going around. You gotta get in them.”
CyberArk (NASDAQ:CYBR) develops and sells identity security solutions, alongside services like multi-factor authentication, identity management, and secrets management for both workforce and customer identities. As the cyber threat landscape continues to expand, the company can benefit as the cybercrime sector is projected to grow by 15% annually, reaching a staggering $10.5 trillion in costs by 2025 according to Cybersecurity Ventures.
On November 13, the company reported third-quarter earnings results and surpassed guidance across all key metrics. The company achieved a strong net new ARR, set a revenue record, and saw notable improvements in profitability and cash flow. Total revenue reached $240.1 million, a 26% increase from $191.2 million in Q3 2023. The company reported non-GAAP earnings of $0.94 per diluted share, up from $0.42 per diluted share, in the same period last year. Annual Recurring Revenue (ARR) hit $926 million, a 31% rise from $705 million as of September 30, 2023.
According to TipRanks, on November 11, JPMorgan kept an Overweight rating on the shares with a $350 price target. The firm’s analyst Brian Essex placed CyberArk (NASDAQ:CYBR) on “Positive Catalyst Watch”. JPMorgan believes the company is well-positioned for continued growth. Essex pointed out that while the stock is a “consensus long”, there is still significant upside potential, particularly as its organic growth and the recent acquisition of Venafi remain underappreciated in the market.
Overall CYBR ranks 6th on our list of the stocks on Jim Cramer's radar. While we acknowledge the potential of CYBR as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than CYBR but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
