Latest news with #CyberArk
Globe and Mail
8 hours ago
- Business
- Globe and Mail
CYBR Rides the Machine Identity Wave: Can Pricing Models Keep Pace?
CyberArk CYBR is experiencing rapid growth in its machine identity business, but the challenge now lies in scaling its pricing model. During the first quarter, management noted that machine identities now outnumber human identities by more than 80 to 1, which is up from a 45 to 1 ratio just a year ago. This rise reflects the broader shift toward automated systems, AI agents, and workload-based architectures. However, as volumes scale into the millions, CyberArk knows traditional per-identity pricing won't work. During first-quarter 2025 earnings call, management acknowledged that customers won't pay premium prices for each machine or agent. Moreover, CyberArk is emphasizing bundled platform deals. This strategy appears to be gaining traction. Machine identity products, including Venafi and Secrets Management, were included in nine of the company's top 10 deals during the first quarter. Another tailwind is a policy shift from the Certificate Authority/Browser Forum to shorten certificate lifespans from 398 days to just 47 days. This change is expected to significantly increase certificate turnover. That drives a need for security management automation, something CyberArk is ready to capitalize on with its machine identity and PKI offerings. With machine identity volumes growing rapidly, CyberArk's ability to offer scalable and flexible pricing will be critical. If executed well, it will lead the company to unlock the full potential of this growing market. During the first quarter earnings call, management stated that while per-unit pricing will drop, the total deal size could grow two to three times larger than typical privileged access management deals. So, CyberArk's future in machine identity looks strong, if its pricing scales smartly. How Competitors Fare Against CYBR CrowdStrike CRWD and Okta Inc. OKTA are also evolving their platforms to meet enterprise security demands. CrowdStrike is another established player in the identity security space, providing unified, real-time protection across cloud, identity and endpoint. CrowdStrike is enhancing its identity security platform with the implementation of AI copilots like Charlotte AI and agentic AI solutions like Charlotte AI Agentic Workflows. OKTA focuses on identity and access management, providing cloud-based solutions that help businesses safeguard user data. Enterprises can now implement Identity Threat Protection with Okta AI to leverage AI and machine learning techniques for real-time detection of the entire spectrum of Identity attacks. CYBR's Price Performance, Valuation and Estimates Shares of CyberArk have gained 17.6% year to date compared with the Zacks Security industry's growth of 25.7%. CYBR YTD Price Performance Image Source: Zacks Investment Research From a valuation standpoint, CYBR trades at a forward price-to-sales ratio of 13.4, below the industry's 15.11. CYBR Forward 12-Month P/S Ratio Image Source: Zacks Investment Research The Zacks Consensus Estimate for CYBR's 2025 and 2026 earnings implies a year-over-year increase of 26.4% and 25.1%, respectively. The estimates for 2025 and 2026 have been revised downward over the past 30 days. CyberArk currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Zacks' Research Chief Names "Stock Most Likely to Double" Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest. This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%. Free: See Our Top Stock And 4 Runners Up Click to get this free report CyberArk Software Ltd. (CYBR): Free Stock Analysis Report Okta, Inc. (OKTA): Free Stock Analysis Report CrowdStrike (CRWD): Free Stock Analysis Report
Globe and Mail
a day ago
- Business
- Globe and Mail
Is Zscaler Stock a Buy, Sell or Hold at a P/S Multiple of 15.56X?
Zscaler, Inc. ZS is one of the leading players in the cybersecurity space, known for its high-growth trajectory. However, its current price-to-sales (P/S) multiple of 15.56X raises concerns about whether the stock's valuation is justified. This multiple comes higher than the Zacks Internet – Services industry average of 14.85X, making the stock seem expensive in comparison. Zscaler Forward 12 Months (P/S) Valuation Chart Zscaler's Slowing Growth Rates are Concerning The overvaluation seems more concerning because Zscaler is facing a slowdown in revenue growth. In the third quarter of fiscal 2025, Zscaler posted year-over-year revenue growth of 22.6%. Zscaler maintained revenue growth in the 20% range across all three quarters of fiscal 2025 compared to growth in the 30% range during fiscal 2024 and the 40% range in fiscal 2023. Zscaler's revenue growth forecast for fiscal 2025 doesn't look encouraging either, as it expects it to be around 22.7%. In its third-quarter fiscal 2025 earnings results, the company acknowledged that economic uncertainty has forced its customers to be cautious with IT budgets, leading to deal scrutiny and longer deal cycles by larger customers. Slowing momentum in the top line is likely to compress margins. Zscaler faces rising competition from other established cybersecurity players, including Palo Alto Networks PANW, CyberArk CYBR and CrowdStrike CRWD. Palo Alto Networks and CrowdStrike are heavily investing in Agentic Operations, which tends to be the future of cybersecurity, putting significant pressure on Zscaler to innovate. Zscaler and CyberArk overlap across Zero Trust Strategy, Identity Threat Detection and Secure Remote Access verticals. Due to these factors, Zscaler has to keep its spending high on R&D as it has to stay ahead in the market. The company is also expanding its S&M capabilities, particularly by increasing the sales force, which might weigh on its near-term profitability. The Zacks Consensus Estimate for Zscaler's fiscal 2025 earnings implies a year-over-year decline of 0.31%. However, not everything is gloom and doom for Zscaler. Zscaler's Investments Could Fuel Long-Term Growth Zscaler remains at the forefront of the cybersecurity space through its innovative efforts. Zscaler has been successful in implementing its Zero Trust Exchange with Zero Trust Everywhere offerings that gained more than 210 adoptions, growing 60% quarter over quarter in the third quarter of fiscal 2025. Zscaler aims to exceed 390 customers by the end of fiscal 2026. Zscaler is also gaining from its agentic operations solutions. Zscaler's SecOps business experienced 120% year-over-year growth in annual contract value since the integration of agentic operations in its security solutions. Driven by these factors, the New Growth Categories, which account for Zero Trust Everywhere, Data Security Everywhere and Agentic Operations, reached the milestone of approximately $1 billion in annual recurring revenues (ARR), while ZS' total ARR reached $2.9 billion in the third quarter of fiscal 2025. In 2025, ZS also launched the Asset Exposure Management solution to enhance organizations' asset risk management capabilities. Zscaler has also partnered with SAP to integrate its Zero Trust Network Access service, Zscaler Private Access, within SAP's RISE framework. ZS acquired Red Canary to enhance its capabilities in Managed Detection and Response operations. Zscaler is also enhancing its portfolio of offerings with the integration of artificial intelligence (AI) in its products. Zscaler partnered with NVIDIA and integrated NVIDIA's AI technologies, including NIM inference microservices, NeMo Guardrails and Morpheus framework into its Zero Trust Security model. Zscaler partnered with CrowdStrike to leverage CrowdStrike's AI expertise in SIEM, threat intelligence, cyber risk quantification and real-time insights. Beyond product innovation, Zscaler is also implementing new purchase programs like Z-Flex. The Z-Flex purchasing program simplifies procurement and allows customers to scale adoption of Zscaler's platform. Z-Flex generated $65 million in TCV bookings in its first quarter, where large clients like a Fortune 500 tech firm increased their ARR by more than 40% to nearly $19 million. Zscaler Expands Its Government Client Base Zscaler is enhancing its GovCloud solutions to receive faster approvals from the governing bodies. ZS is expanding its presence among government agencies through compliance with government security standards. Zscaler has enabled numerous government agencies to utilize AI-powered Cloud Browser Isolation and IPv6 for secure connectivity, mainstreaming its GovCloud solution among its federal clients. In the last reported quarter, Zscaler reported that it is serving 14 out of 15 U.S. cabinet-level agencies. As more government agencies use Zscaler's products, the company's presence in the public sector could expand, providing a stable growth stream. ZS' recent inclusion in Amazon Web Services' Internet Control Message Protocol, which will ensure that Zscaler's cybersecurity solutions will now be readily accessible to U.S. federal agencies, furthers its reach among federal agencies. All these factors have won investors' confidence in Zscaler's long-term growth strategy. Zscaler's share price has surged 74% year to date, much higher than the Zacks Security Industry's return of 25.7%. Zscaler has also outperformed its peers, including CyberArk, CrowdStrike and Palo Alto Networks, which have returned 22.2%, 48.9% and 12.5%, respectively. Conclusion: Hold ZS Stock for Now Although Zscaler faces challenges related to increasing expenses, shrinking margins and premium valuation, the company's heavy investment in AI, innovative cybersecurity capabilities, customer retention and long-term contracts with government agencies make the stock worth retaining at present. Zscaler carries a Zacks Rank #3 (Hold) at present. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Only $1 to See All Zacks' Buys and Sells We're not kidding. Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent. Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators, and more, that closed 256 positions with double- and triple-digit gains in 2024 alone. See Stocks Now >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Palo Alto Networks, Inc. (PANW): Free Stock Analysis Report CyberArk Software Ltd. (CYBR): Free Stock Analysis Report Zscaler, Inc. (ZS): Free Stock Analysis Report CrowdStrike (CRWD): Free Stock Analysis Report
Yahoo
4 days ago
- Business
- Yahoo
Panasonic Adopts CyberArk for Enhanced Identity Security
CyberArk Software Ltd. (NASDAQ:CYBR) is one of the best software infrastructure stocks to invest in. On June 24, CyberArk announced that Panasonic Information Systems Co. Ltd., which is the IT strategy arm of the Panasonic Group, has successfully implemented the CyberArk Identity Security Platform. The deployment is a part of Panasonic's broader digital transition initiative, known as Panasonic Transformation/PX, which commenced earlier in May 2021. The primary goal of this implementation is to secure privileged access to thousands of servers, which include both Windows and Linux, across the entire Panasonic Group. Before this, Panasonic Information Systems relied on a manual approach to privileged access management, which led to inefficiencies and limited visibility into access requests and approvals. A data center with a repetetive design of computer servers, showing the companies' efficient and secure IT infrastructure. With the adoption of CyberArk Privileged Access Manager, a component of the CyberArk Identity Security Platform, Panasonic has now established a modern, automated, and centralized environment for managing privileged access. This system provides visibility into server access and details who accessed which server, when, and what actions were performed. Thereby creating an audit trail for improved post-incident investigations. Additionally, credentials and passwords are now automatically granted, hidden from users, and rotated within the CyberArk platform. CyberArk Software Ltd. (NASDAQ:CYBR) develops, markets, and sells software-based identity security solutions and services internationally. Panasonic Holdings Corporation researches, develops, manufactures, sells, and services various electrical and electronic products worldwide. While we acknowledge the potential of CYBR as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the . READ NEXT: and . Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
5 days ago
- Business
- Yahoo
DA Davidson Raises CyberArk (CYBR) Price Target, Maintains Buy Rating
CyberArk Software Ltd. (NASDAQ:CYBR) is one of CyberArk Software Ltd. (NASDAQ:CYBR) received a vote of confidence from DA Davidson, as analyst Rudy Kessinger raised the firm's price target on the cybersecurity firm to $465 from $435 while maintaining a Buy rating. The upward revision follows a group investor call hosted with CyberArk's Chief Financial Officer, where management's tone appeared upbeat despite the backdrop of a typically back-end loaded quarter. A data center with a repetetive design of computer servers, showing the companies' efficient and secure IT infrastructure. Kessinger noted that with three weeks remaining in the current reporting period, CyberArk's leadership did not indicate any signs of macroeconomic weakness impacting performance. According to his note to clients, the company appears to be executing well and remains on track with its financial and operational goals. The lack of caution from management was seen as particularly encouraging, given broader uncertainty in the software and cybersecurity sectors. CyberArk Software Ltd. (NASDAQ:CYBR), known for its leadership in identity security and privileged access management, has continued to see strong demand for its solutions as enterprises invest in infrastructure to defend against increasingly sophisticated threats. The company's transition to a subscription-based model has also gained traction, contributing to more predictable revenue growth and long-term customer relationships. DA Davidson's revised price target reflects growing confidence in CyberArk's market position and execution capabilities. Kessinger's outlook reinforces the company as a top pick in cybersecurity, with fundamentals that appear well-aligned for continued strength heading into the second half of the year. While we acknowledge the potential of CYBR to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than CYBR and that has 100x upside potential, check out our report about this cheapest AI NEXT: 10 Best Small Cap Tech Stocks With Biggest Upside Potential and . Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
5 days ago
- Business
- Yahoo
Is It Worth Investing in CyberArk (CYBR) Based on Wall Street's Bullish Views?
When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important? Let's take a look at what these Wall Street heavyweights have to say about CyberArk (CYBR) before we discuss the reliability of brokerage recommendations and how to use them to your advantage. CyberArk currently has an average brokerage recommendation (ABR) of 1.13, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 32 brokerage firms. An ABR of 1.13 approximates between Strong Buy and Buy. Of the 32 recommendations that derive the current ABR, 29 are Strong Buy and two are Buy. Strong Buy and Buy respectively account for 90.6% and 6.3% of all recommendations. Check price target & stock forecast for CyberArk here>>> While the ABR calls for buying CyberArk, it may not be wise to make an investment decision solely based on this information. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential. Are you wondering why? The vested interest of brokerage firms in a stock they cover often results in a strong positive bias of their analysts in rating it. Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations. In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement. With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near-term price performance. So, validating the Zacks Rank with ABR could go a long way in making a profitable investment decision. In spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures. Broker recommendations are the sole basis for calculating the ABR, which is typically displayed in decimals (such as 1.28). The Zacks Rank, on the other hand, is a quantitative model designed to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5. Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide. In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research. Furthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. In other words, at all times, this tool maintains a balance among the five ranks it assigns. There is also a key difference between the ABR and Zacks Rank when it comes to freshness. When you look at the ABR, it may not be up-to-date. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices. Looking at the earnings estimate revisions for CyberArk, the Zacks Consensus Estimate for the current year has increased 41.9% over the past month to $3.81. Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason for the stock to soar in the near term. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #2 (Buy) for CyberArk. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Therefore, the Buy-equivalent ABR for CyberArk may serve as a useful guide for investors. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report CyberArk Software Ltd. (CYBR) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
