CyberArk Software Ltd. (NASDAQ:CYBR) Screens as a High-Growth Momentum Stock with Strong Technicals

CyberArk Software Ltd. (NASDAQ:CYBR) has recently appeared through a screening method combining Mark Minervini's strict Trend Template with a High Growth Momentum (HGM) filter. This two-part method finds companies showing both strong technical health and increasing fundamental growth, a key feature of Minervini's SEPA (Specific Entry Point Analysis) method. The plan looks for stocks in strong upward trends, backed by good earnings and sales momentum, which often come before major price gains.

Technical Health and the Trend Template

A main idea of the Minervini plan is to invest in stocks that are already in a clear and strong upward trend, avoiding the problems of trying to buy a stock that is falling. The Trend Template gives a structured way to find such stocks, and CyberArk now meets its main technical requirements.

The stock's price movement and moving average setup show a positive position:

• The current price is well above its increasing 50-day, 150-day, and 200-day simple moving averages.
• The 50-day moving average is located above both the 150-day and 200-day averages.
• The 150-day moving average itself is above the 200-day average, confirming the agreement of long-term momentum.

This setup shows that CYBR is in a clear Stage 2 upward move, the only stage in which Minervini focuses his investments. More evidence of this technical condition is the stock's place compared to its 52-week range. The current price is much higher than its 52-week low and is trading near its 52-week high, a trait of market leaders. Possibly most significant is its very high relative strength ranking of 91.44, showing it is performing better than most stocks in the market, a required filter in the Trend Template for finding true market leaders.

Fundamental Reasons for High Growth

While the Trend Template checks for technical condition, the High Growth Momentum (HGM) rating concentrates on the fundamental increase that can power a stock's strong performance. CyberArk shows the kind of fast growth in earnings and sales that draws institutional notice and supports continued price trends.

The company's earnings results have been especially notable:

• Earnings per Share (EPS) for the trailing twelve months (TTM) increased by about 43%.
• Quarterly EPS increase has been solid, with the latest quarter rising almost 63% year-over-year.
• This health is steady, as shown by the company exceeding EPS estimates in each of the past four quarters, with an average beat of over 35%.

For the top line, revenue increase is similarly strong, showing good demand for its services:

• TTM revenue increased by almost 39%.
• Recent quarterly sales increase has sped up, reaching about 46%.
• The company has also regularly beaten revenue estimates for four quarters in a row.

This pairing of strong earnings and sales increase is a key part of the SEPA method, as "big earnings draw big attention" from the institutional investors that can drive a stock's price for a long time.

Technical Analysis Summary

The technical report for CyberArk gives a top rating of 10 out of 10, reflecting very good technical condition. The summary points to a steady and stable performance across both short-term and long-term periods. The stock is reaching new 52-week highs, a positive sign that matches the wider market's health. While the technical view is healthy, the report states that the recent price change has been a bit unstable, leading to a lower setup quality score. This indicates that while the stock is technically in good condition, investors might prefer to wait for a more clear quiet period to find a better entry point with a good risk/reward balance. A detailed technical analysis report is available for a closer look into support, resistance, and volume patterns.

Finding Comparable Opportunities

For investors looking for other companies that match this mix of strong technical trends and high-growth fundamentals, the screening method that found CyberArk can be a useful tool. The predefined screen joins Minervini's Trend Template with a High Growth Momentum filter to systematically find possible candidates. You can access this screen and view more results here.

Disclaimer: This is not investment advice. The content is intended for informational and educational purposes only. Always conduct your own research and consider consulting with a qualified financial advisor before making any investment decisions.