The Best Investments for the Next Decade: CyberArk Software (CYBR)
This pick suddenly got a lot cheaper.
There’s no bigger problem for multinational companies than cyber threats that compromise their highest-value information assets held in the cloud.
Estimates put the annual cost of cyber attacks to the U.S. economy at $100 billion, or 0.64% of America’s GDP. That might not seem like a lot … until you consider that it costs the country 500,000 jobs annually. That’s a lot of people removed from the economy simply because of insufficient cybersecurity. And it’s only going to get worse.
That’s where CyberArk Software Ltd (NASDAQ:CYBR) comes into play.
CyberArk partners with more than 3,200 global businesses, including 45% of the Fortune 100 to protect their valuable information. In five years, its revenue and non-GAAP operating profits have grown by 503% and 729% on a cumulative basis. It continues to grow the top and bottom lines by more than 20% a quarter, and that growth is expected to continue for at least the next five years.
CYBR is just coming off a 17% haircut following an earnings warning, providing hints to the rest of the industry that the cybersecurity scares of the past few months (namely WannaCry and NotPetya) didn’t actually drive a sudden spike in business.
Stifel analysts seem to think differently, believing it’s possible that these ransomware attacks actually “disrupted sales cycles,” which means those purchases could have been pushed a couple months back.
CyberArk still has a sound balance sheet and lots of room for growth, plus it’s small enough that an acquisition is a very real possibility.