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Small-cap stocks can deliver explosive gains -- or sizable losses. Choose well, and these high-risk yet potentially high-reward stocks can deliver multibagger returns and turbocharge your portfolio's overall performance. But choose poorly, and a small-cap stock can produce painful losses, up to and including a complete loss of capital should the business be forced into bankruptcy.
That's why it's so important to invest in only the best of these businesses -- those that are poised to benefit from undeniable long-term trends, possess the strongest competitive advantages, and enjoy the largest growth opportunities. Read on to learn about one such business that meets these challenging criteria -- and that's one of the best small-cap stocks available in the market today.
Image source: CyberArk Software.
The cybersecurity specialist
Cyber attacks continue to grow in size and scope -- 177 million personal records were
To guard against those attacks, typical cybersecurity systems utilize firewalls and threat-detection tools to protect against external threats. Yet a September
Enter CyberArk Software (NASDAQ: CYBR), a leader in "privileged account" security solutions, which help to protect against the most advanced cyber threats -- those that use insider privileges to penetrate network perimeters and attack the most vital aspects of an enterprise's IT infrastructure.
CyberArk serves more than 2,800 businesses, including 45% of the Fortune 100 and more than 25% of the Global 2000. Yet that's only a small fraction of the companies that could benefit from CyberArk's services, particularly as small and mid-size businesses come to understand the importance of strengthening their cybersecurity defenses in the coming years. In fact, CEO Udi Mokady said during a recent conference call that CyberArk is "just scratching the surface" of its tremendous market opportunity.
The company is moving aggressively to fulfill that potential by rapidly expanding its client base, both within its core enterprise segment and in fast-growing adjacent areas such as government organizations, hospitals, and mid-sized businesses.
Additionally, CyberArk is
These moves have helped CyberArk deliver
Moreover, CyberArk has a pristine balance sheet, with nearly $275 million in cash and investments and zero long-term debt. Along with its strong cash generation -- including more than $36 million in operating cash flow during the first nine months of 2016 -- CyberArk should have all the capital it needs to reinvest in its business and fuel its torrid growth.
Combined, these competitive advantages should allow CyberArk to continue to expand its share of the increasingly important market for privileged account security. In turn, CyberArk appears set to deliver solid returns to long-term investors. And it's possible that those gains could come even sooner, as CyberArk -- at its current market cap of only about $1.7 billion -- could make for an attractive
With multiple ways to win, CyberArk is an excellent small-cap stock to consider buying today.
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