Jim Cramer’s Hidden Gems: 10 Undervalued Stocks You Need to Know

8. Rubrik, Inc. (NYSE:RBRK)

Number of Hedge Fund Holders In Q3 2024: 23

Date of Cramer’s Comments: 8-27-24

Performance Since Then: 93%

Rubrik, Inc. (NYSE:RBRK) is a software-as-a-service (SaaS) firm that operates in the cybersecurity industry. The firm provides data protection, threat analytics, data recovery, and other associated services. Rubrik, Inc. (NYSE:RBRK)’s shares are up 85% year-to-date primarily on the back of its strong third-quarter results following which the stock jumped by 30%. These results saw the firm grow its recurring revenue by more than 35% and grow revenue by 43% to $236 million. Recurring revenue is a key aspect of SaaS performance as it lets investors measure the strength of a firm’s industry partnerships and its ability to earn margin-friendly stable and long-term revenue. Rubrik, Inc. (NYSE:RBRK)’s shares went public in April, and Cramer commented on the offering in August:

“The next largest IPO is Rubrik, the cybersecurity firm that helps customers secure their data. This is the kind of unprofitable software company that went out of style in 2022 and never really came back, but it’s also a cybersecurity play, a much stronger cohort. Rubrik had a good debut, and it’s still up 11% from its offer price, but the stock’s also down from its first trade. I’d say the jury’s still out on this one.”