10 Stocks on Jim Cramer’s Radar

6. CyberArk Software Ltd. (NASDAQ:CYBR)

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.