We recently compiled a list of the 10 stocks on Jim Cramer’s radar. In this article we are going to look at where CyberArk Software Ltd. (NASDAQ:CYBR) is on Jim Cramer’s radar relative to the other stocks.
Mad Money host Jim Cramer recently shared his outlook for Wall Street, focusing on earnings reports. On Friday, he highlighted how the S&P 500 rose in almost a straight line to 6,000, a remarkable rally driven by overwhelming buying and a lack of selling. Cramer noted the market’s performance, pointing out that the Dow Jones rose 260 points, the S&P rose 0.38% and the Nasdaq rose 0.09%, with all major indexes closing at new all-time highs.
He described Friday as another impressive session, adding that it marked a historic moment. Cramer reiterated his point, saying:
“This is, ladies and gentlemen, a historic step that we are witnessing, fueled by an election in which 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.”
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Cramer went on to say that now that Trump has won, the benefits for many sectors are clear. He cited technology, oil, pharmaceuticals, consumer goods and financial services as key examples of sectors showing strong performance. He emphasized that these gains were driven by money managers who feared missing the market’s upward trajectory and were unwilling to sell because they knew they might not have enough stocks in their portfolio. Cramer also predicted that we would soon witness a wave of mergers and acquisitions.
“At the same time, we are about to see a wave of takeovers because antitrust regulators will stop blocking every deal under the sun because a new broom will be swept clean.”
Cramer emphasized the importance of looking at the market by sector. He noted that the technology sector had taken a breather on Friday. He suggested that in the coming days, the retail sector could rise, followed by the financial sector and then the industrial sector. 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 did not appear to place much importance on the stock market during his time in office.
“To him it was an abstraction,” Cramer noted, adding that this position was changing under the current administration. In conclusion, Cramer made it clear that stocks were about to have a true champion in the White House again.
“Stocks are about to get another champion in the White House, even though you may think they’re not worthy of a presidential supporter. I say get used to it, even if the purchases have already started, because we have a lot more room to run.”
Our Methodology
For this article, we’ve compiled a list of 10 stocks discussed by Jim Cramer on the November 8 episode of Mad Money and listed the stocks in the order Cramer mentioned them.
Why are we interested in the stocks that hedge funds invest in? The reason is simple: our research shows that we can outperform the market by imitating the best stock picks from the best hedge funds. Our quarterly newsletter strategy selects 14 small- and large-cap stocks each quarter and has returned 275% since May 2014, beating the benchmark by 150 percentage points (see more details here).
A data center with a repetitive design of computer servers, demonstrating the company’s efficient and secure IT infrastructure.
Cramer said CyberArk Software Ltd. (NASDAQ:CYBR) previously reported good numbers and noted that cybercrime is rampant.
“CyberArk reported this on Wednesday morning and this is an exclusive cybersecurity company that guards the so-called keys… of the digital kingdom. I think it will produce good figures. Cybercrime shows no sign of abating. How great is this sector for stock performance? You know we own both CrowdStrike and Palo Alto Networks for the Charitable Trust. They do compete, but there is so much going on. You have to step into it.’
CyberArk (NASDAQ:CYBR) develops and sells identity security solutions, in addition to services such as multi-factor authentication, identity management and secrets management for both employee and customer identities. As the cyber threat landscape continues to expand, the company stands to benefit as the cybercrime industry is expected to grow 15% annually and reach a whopping $10.5 trillion in costs by 2025, according to Cybersecurity Ventures.
On November 13, the company reported third-quarter earnings results, beating expectations on all key metrics. The company achieved strong net new ARR, set a revenue record and saw notable improvements in profitability and cash flow. Total revenue was $240.1 million, up 26% from $191.2 million in the third quarter of 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) was $926 million, up 31% from $705 million at September 30, 2023.
JPMorgan maintained an Overweight rating on the stock with a $350 price target on Nov. 11, according to TipRanks. The company’s analyst Brian Essex placed CyberArk (NASDAQ:CYBR) on “Positive Catalyst Watch.” JPMorgan believes the company is well positioned for further growth. Essex pointed out that while the stock is “consensus long,” there is still significant upside potential, especially as organic growth and the recent Venafi acquisition remain undervalued in the market.
In short, CYBR is in 6th place on our list of stocks on Jim Cramer’s radar. While we recognize CYBR’s potential as an investment, our belief lies in the belief that AI stocks hold greater promise for delivering higher returns in a shorter time frame. If you’re looking for an AI stock that’s more promising than CYBR but trades at less than five times earnings, check out our report on the cheapest AI stocks.
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Disclosure: None. This article was originally published on Insider Monkey.
