CyberArk Software Ltd/Israel (NASDAQ:CYBR) Combines High Growth Momentum with Technical Breakout Setup

In the changing environment of equity investing, combining fundamental momentum with technical precision has become a favored method for finding high-potential opportunities. One method gaining attention involves screening for stocks that show solid high growth momentum traits while also showing good technical breakout setups. This two-part strategy aims to capture companies showing solid earnings acceleration, sales growth, and positive analyst revisions, key parts of the High Growth Momentum Rating, while also showing orderly price consolidation and trend strength as seen in the Technical and Setup Quality Ratings. Stocks that meet these conditions often represent interesting candidates for investors aiming to align fundamental growth with technically good entry points.

CyberArk Software Ltd/Israel (NASDAQ:CYBR) appears as a notable example that meets these strict filters. The company, a focused provider of privileged access security solutions, has shown notable fundamental momentum. Its High Growth Momentum Rating of 6 shows solid performance across important growth measures. Notably, the company has reached a trailing twelve-month EPS growth of 42.86%, with recent quarterly EPS growth rising to 62.96% compared to the same quarter last year. Revenue growth has been just as notable, with TTM sales increasing by 39.46% and last quarter's sales growing by 45.98% year-over-year. These numbers show not just growth, but speeding up operational performance, a key point for momentum investors who focus on expanding earnings and sales paths.

The company’s capacity to regularly beat expectations further supports its fundamental case. Over the last four quarters, CyberArk has exceeded EPS estimates by an average of 35.31%, while also beating revenue estimates in each period. Such steady outperformance often points to basic business strength and can result in positive analyst revisions, which have been seen with next-year EPS estimates increasing 2.18% over the last three months. Also, free cash flow growth has been very high at 834.66% year-over-year, showing good cash generation along with earnings expansion, a pairing that growth investors especially value for sustainability.

From a technical viewpoint, CyberArk presents an equally interesting picture. The stock gets a perfect Technical Rating of 10, showing very good technical health across multiple timeframes. Both long-term and short-term trends are positive, with the stock trading near its 52-week high and showing better relative strength by performing better than 89% of all stocks over the last year. The security also shows strength in its industry, performing better than 83% of software stocks. These technical traits fit well with the momentum investing philosophy, which focuses on investing in stocks that are already showing strength and leadership in their sectors.

The Setup Quality Rating of 7 shows the stock is now forming an orderly consolidation pattern after its recent rise. According to the technical analysis report, CyberArk has been trading in a set range between $396.15 and $457.07 over the last month, with lower volatility showing a possible coiling action before a potential breakout. The analysis finds six separate support levels below the current price, giving clearly set risk management areas for traders. Especially notable is the recent pocket pivot signal, a volume-based indicator pointing to institutional accumulation, which adds confidence to the setup.

This pairing of solid fundamental momentum and technical positioning makes an interesting chance for growth-focused investors. The fundamental growth measures meet the main needs of momentum investing by showing acceleration in key business drivers, while the technical setup gives a possibly good risk/reward entry point. The stock's consolidation near highs, along with multiple support levels and falling volatility, suggests the chance for a continuation of its set uptrend should it break above the recent range.

For investors wanting to find similar chances that pair solid growth fundamentals with technical breakout setups, more candidates can be found through this specialized screening methodology. This screen finds securities with High Growth Momentum Ratings above 6, Technical Ratings above 7, and Setup Ratings above 7, presenting a selected list of companies showing both fundamental acceleration and technical readiness.

Disclaimer: This analysis is provided for informational purposes only and does not constitute investment advice, a recommendation, or an offer to buy or sell any securities. Investors should conduct their own research and consult with a qualified financial advisor before making investment decisions. Past performance is not indicative of future results.