CyberArk is a cybersecurity vendor focused on the identity market. The company’s core privileged access management offering is a market leader within that subsegment, with more than half of the Fortune 500 CyberArk customers. The identity security vendor was founded in 1999 and has around 9,000 customers across various industries. While historically, CyberArk has sold its security solutions primarily via on-premises licenses, over the past few years, it has transitioned to a subscription, recurring revenue model.

CyberArk is a cybersecurity vendor focused on the identity market. The company’s core privileged access management offering is a market leader within that subsegment, with more than half of the Fortune 500 CyberArk customers. The identity security vendor was founded in 1999 and has around 9,000 customers across various industries. While historically, CyberArk has sold its security solutions primarily via on-premises licenses, over the past few years, it has transitioned to a subscription, recurring revenue model.

CyberArk is a cybersecurity vendor focused on the identity market. The company’s core privileged access management offering is a market leader within that subsegment, with more than half of the Fortune 500 CyberArk customers. The identity security vendor was founded in 1999 and has around 9,000 customers across various industries. While historically, CyberArk has sold its security solutions primarily via on-premises licenses, over the past few years, it has transitioned to a subscription, recurring revenue model.

When it comes to focusing on sectors of the S&P 500, we think it makes sense to focus primarily on a few key sectors that can actually make a difference in terms of earnings and portfolio performance. As an example, the Real Estate sector, which accounts for about 2% of S&P 500 capitalization, is expected to contribute only 1% of S&P 500 EPS during the during the upcoming 2Q24 EPS period (which will kick into gear next month). The Materials sector is another 2% market weight that generates a thin 3% of total earnings. We don't think clients should be spending a lot of time on deep dives trying to get these sectors right. The groups that really make a difference are going to be Information Technology, which is expected to account for 21% of the earnings; and Financial and Healthcare, which are expected to account for 20% and 14%, respectively. Perhaps not surprisingly, these are three sectors in which the United States enjoys competitive advantages versus other nations. At the next tier, the Industrial, Consumer Discretionary and Communication Services sectors all appear in line, with market cap weights and earnings contributions in the 9%-10% range. We note that the Energy sector punches above its weight, accounting for less than 4% of total market capitalization but generating 7% of S&P 500 profits.