CyberArk Software (NASDAQ:CYBR) Presents a High-Growth Momentum and Technical Breakout Opportunity

Cybersecurity specialist CyberArk Software Ltd/Israel (NASDAQ:CYBR) has appeared as a notable option for investors using a high growth momentum strategy paired with technical breakout analysis. This method finds companies showing good underlying business momentum through speeding up earnings and sales growth, while also displaying a good technical chart pattern indicating a possible entry point. The strategy aims to capture stocks set for further price gains by matching strong fundamental growth drivers with good price movement.

High Growth Momentum Fundamentals

CyberArk displays a good base of growth, receiving a High Growth Momentum Rating of 6. This score shows good performance across several important financial measures that are vital for finding companies with short-term earnings momentum. For momentum investors, regular beats on analyst estimates and positive revisions are good signs of continued business success.

• Earnings and Sales Growth: The company has shown good year-over-year growth, with TTM EPS rising by 42.9% and revenue going up by 39.5%. The most recent quarter was especially good, showing EPS growth of 63% and sales growth of 46% compared to the same period last year.
• Estimate Surprises and Revisions: A main part of the momentum rating is a company's capacity to regularly beat market expectations. CyberArk has done this, exceeding EPS estimates in each of the last four quarters by an average of 35.3%. Also, analysts have become more positive, increasing their earnings estimates for the next year by 1.5% over the last three months, indicating belief in the company's future results.
• Free Cash Flow Expansion: The company's financial condition is further highlighted by a large increase in free cash flow, which grew by over 834% in the past year. This good cash generation gives CyberArk important financial room to fund growth projects.

Technical Strength and Setup Quality

From a technical view, CyberArk's chart shows an equally notable picture. The stock has been given a perfect Technical Rating of 10, showing very good technical health. This score is for market leaders showing good and steady trends across different time periods. A high technical rating is important for momentum investors as it confirms that the positive fundamental story is being seen in the stock's price movement.

The current market situation, with the S&P 500 showing good long and short-term trends, gives a good setting for such strong technical performers. The detailed technical report points out several good points:

• Both long-term and short-term trends are good.
• The stock is doing better than 92% of the market on a yearly performance basis and is a leader in its software industry.
• It is currently trading close to its 52-week high, confirming its strength.

Beyond the basic technical strength, CyberArk also presents a high-grade setup with a Setup Rating of 8. This shows the stock is currently in a consolidation period, which often comes before a new move higher. For traders, a high setup rating finds a possible entry point with a set risk level.

• Prices have been consolidating in a range between $469 and $514 over the last month, lowering volatility and forming a base for a possible breakout.
• A clear support zone exists below the current price around $497, giving a sensible area to set a protective stop-loss order.
• There is very little resistance directly above the current price, indicating a clear way upward if a breakout happens.

Conclusion

CyberArk Software represents a meeting of good fundamental growth momentum and a technically healthy chart pattern. The company's notable earnings growth, steady capacity to beat expectations, and positive analyst opinion form a good base for the high growth momentum strategy. This fundamental strength is matched by a nearly perfect technical rating and a high-grade consolidation setup, suggesting the stock may be set for its next important price increase. For investors following this method, CYBR presents a candidate that fits the strict requirements for both business and price momentum.

For investors looking for more options that fit these specific requirements, a selected list of high growth momentum stocks with good technical breakout setups can be found using this pre-configured stock screen.

Disclaimer: This article is for informational purposes only and does not constitute investment advice of any kind. All data and analysis are based on publicly available information and should not be interpreted as a recommendation to buy or sell any security. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.