CyberArk Software Ltd. (NASDAQ:CYBR): A High-Growth Momentum Stock with Strong Technical Setup

Investors looking for high-growth momentum stocks often focus on companies showing strong earnings acceleration, upward revisions, and growing profit margins, qualities that usually come before lasting price gains. The ChartMill High Growth Momentum Rating measures these traits by looking at quarterly earnings surprises, year-over-year growth trends, free cash flow growth, and changes in analyst estimates. When paired with solid technical setups, identified through ChartMill’s Technical Rating (evaluating trend strength) and Setup Rating (spotting consolidation patterns), these stocks may offer attractive opportunities.

CyberArk Software Ltd. (NASDAQ:CYBR) fits this approach, earning a 7 out of 10 on the High Growth Momentum Rating, along with a Technical Rating of 7 and a Setup Rating of 8. Here’s what makes it notable:

Fundamental Growth Momentum

• Earnings and Revenue Growth: CYBR’s trailing twelve-month (TTM) EPS increased 62.2% year-over-year, while revenue grew 35.1%. The latest quarter saw EPS rise 30.7% and sales jump 43.4% compared to the same period last year.
• Free Cash Flow Growth: Free cash flow per share soared 1,271% over the past year, showing better operational efficiency.
• Consistent Earnings Surprises: The company exceeded EPS estimates by an average of 41.6% over the last four quarters, with revenue surprises averaging 1.4%.
• Upward Revisions: Analyst EPS estimates for the next year have increased 5.1% in the last three months, reflecting stronger confidence in future results.

These numbers match the High Growth Momentum strategy’s focus on rising profitability, positive surprises, and higher revisions, factors that often support continued price gains.

Technical Strength and Setup Quality

CYBR’s technical profile, detailed in its Technical Analysis Report, shows:

• Long-Term Uptrend: Despite a recent short-term dip, the stock stays in a positive long-term trend, trading above its 200-day moving average.
• Consolidation Pattern: The Setup Rating of 8 points to a narrowing price range, with support near $374.79 and resistance around $387.90. Lower volatility suggests a possible breakout.
• Relative Strength: CYBR beats 84% of stocks over the past year and 71% of its software industry peers, highlighting its strong position.

Why This Combination Matters

High-growth stocks with solid technical setups often provide lower-risk entry points during consolidations, as seen with CYBR. The combination of:

1. Fundamental Momentum (higher earnings, cash flow, and revisions)
2. Technical Readiness (tight trading range, clear support/resistance)
   creates a situation where confirmed breakouts can lead to extended gains.

For investors following this method, CYBR stands out as a stock where growth fundamentals are backed by technical structure.

Find More High-Growth Breakout Candidates

The High Growth Momentum Breakout Setups Screen filters for stocks with similar profiles, pairing high growth scores with actionable technical setups.

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Disclaimer: This analysis is for informational purposes only and does not constitute investment advice. Always conduct your own research before making trading decisions.