Even though the stock market has been hit hard, and could be in for some more downside, the world is changing, and it continues changing fast. Investors that seek out new trends often end up ahead of the game, and one of the requirements is patience. A new report from Merrill Lynch updates the firm’s “Transforming World” third-quarter Primer Picks.
We screened the list, many of which trade in Asia and other parts of the world, for domestic stocks that fit into the firm’s themes. We found three that could have big upside for investors.
This company had a red-hot IPO last year and is part of the security theme at Merrill Lynch. CyberArk Software Ltd. (NASDAQ: CYBR) claims it is the only security company focused on eliminating the most advanced cyber threats, those that use insider privileges to attack the heart of the enterprise. The company proactively secures against cyber threats before attacks can escalate and do irreparable damage. Some 35% of the Fortune 100 and 17 of the world’s top 20 banks use the software to protect high-value information assets, infrastructure and applications.
The Merrill Lynch team highlights the company’s unique and innovative technology that has a very large and rapidly growing market opportunity of somewhere near $2.1 billion. They also see the company growing revenues at an astonishing 25% for the next several years, and the potential for 25% to 30% operating margins. CyberArk crushed earnings expectations recently and posted strong forward guidance. The stock was hit very hard during the recent sell-off and is down over 40% from highs posted in June.
Merrill Lynch recently raised its price target on the stock from $70 to $80. The Thomson/First Call consensus price target is $64.64. Shares closed Friday at $46.51.