3 Israeli Tech Stocks to Add to Your Watchlist: NICE, Wix.com, and CyberArk

Israel is known as a “start-up nation” due its thriving technology start-up culture, with approximately 600 start-ups being launched annually. This year, technology companies in Israel have seen an increase in investment of 23% compared to the last year. The rise in investments can be attributed to the growing demand worldwide for innovative solutions in the pandemic-era and, more recently, a pandemic-led acceleration of digital transformation that has increased the demand for these companies' products and services.

Several technology companies based in Israel are listed on U.S. stock exchanges. This gives U.S. investors a prime opportunity to take part in the growth of these companies.

NICE Limited (NICE), Wix.com, Ltd. (WIX), and CyberArk Software Limited (CYBR) have performed well this year. These companies have a positive outlook in terms of revenues and EPS, and they are innovating quickly to become or remain market leaders. So, we think it could be a good idea to add these stocks to your watchlist.

NICE Limited (NICE)

NICE provides software security solutions to enterprise and institutional clients. The company’s solutions protect against fraud and financial crimes. NICE’s stock has gained 80.3% so far this year.

NICE Actimize’s X-Sight Marketplace, which is the first financial crime and compliance ecosystem, recently added FACEPOINT to its list of technology partners. FACEPOINT provides an industry-leading biometric screening system that helps with advanced KYC and watchlist-risk screening.

For the quarter ended September 30, 2020, the company’s revenue rose 7% compared to the same period last year. The company’s cloud revenue rose 35% during the same period.

NICE is expected to see a revenue bump of 5.8% for the quarter ended March 31,2021 and 9.3% in 2021. The company’s EPS is estimated to grow 10.9% in 2021 and at a rate of 10% per annum over the next five years.

How does NICE stack up for the POWR Ratings?

A for Trade Grade

A for Buy & Hold Grade

A for Peer Grade

B for Industry Rank

A for Overall POWR Rating

The stock is also ranked #6 of 24 stocks in the Software – Security industry.

Wix.com, Ltd. (WIX)

WIX provides website creation solutions. It offers web development, web design, and management solutions through its online platform. WIX’s stock has risen 118.3% year-to-date.

WIX recently partnered with Vodafone and will now be available for through the Vodafone Business Marketplace platform. The move will enable Vodafone’s customers in the U.K. to sign up for WIX subscriptions and use its services. The company will also be hosting its Wix Playground Academy, which is an intensive web design program, in Europe this January.

For the quarter ended September 30, 2020, WIX reported an increase in revenue of 29% year-over-year. The company’s creative subscriptions ARR increased 24% during the same period.

WIX’s revenue is estimated to increase 57.7% for the quarter ended December 31,2020 and 29% in 2021. The company’s EPS is expected to rise 108% in 2021.

WIX’s strong fundamentals are reflected in its POWR Ratings. It has a “Buy” rating with an “A” for Trade Grade and Industry Rank. It is ranked #13 of 37 stocks in the Internet – Services industry.

CyberArk Software Limited (CYBR)

CYBR develops and markets IT security solutions to protect against cyber attacks. The company has operations in the United States and internationally. CYBR’s stock price has increased 38.3% year-to-date.

CYBR recently partnered with Forescout and Phosphorous to help organizations protect their internet-of-things devices in the era of digital transformation. The company has also launched a new AI-powered service that will strengthen the security of cloud environments.

For the quarter ended September 30, 2020, the company’s annual recurring revenue has increased 40% compared to the same period last year. The company’s revenue from SaaS and subscriptions rose approximately 200% during the same period. CYBR’s revenue is expected to grow 6.7% for the quarter ended March 31, 2021 and 7.9% in 2021.

It is no surprise that CYBR has a “Strong Buy” in our POWR Ratings systems with a grade of “A” in Trade Grade and Buy & Hold Grade. In the 24-stock Software – Security industry, CYBR is ranked #8.

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NICE shares were trading at $280.28 per share on Monday afternoon, up $0.48 (+0.17%). Year-to-date, NICE has gained 80.65%, versus a 17.76% rise in the benchmark S&P 500 index during the same period.

Aaryaman is an accomplished journalist that’s passionate about providing in-depth insights about investing and personal finance. Recently he has been focused on the stock market and he specializes in evaluating high-growth stocks.

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