2021 was a strong year for a number of stock market segments. Among the strongest performers were Israeli tech companies.
The past year saw the most-ever IPOs in this high-conviction sector, along with more unicorns and robust investment interest. Given this segment's trajectory, 2022 could be even better for Israeli technology firms. If you want to invest in Israeli tech companies that are trading on the NYSE or Nasdaq, how can you easily research which have good prospects?
The answer lies in another Israeli company. TipRanks is a multi-award-winning fintech company that provides simplified research tools and unique data for individual investors.
We applied TipRanks’ alternative data, such as Wall Street analyst consensus ratings and price targets, as well as insider activity and other metrics, to analyze four leading Israeli publicly traded companies.
CyberArk Software Ltd. (NASDAQ:CYBR)
Identity is the new security battleground: that's the driving concept behind Nasdaq-listed CyberArk (CYBR). This company's software-based security solutions and services should be in high demand in 2022, as last year's Colonial Pipeline hack reminded the world of just how fragile our networks really are.
Founded in Israel in 1999, CyberArk provides a nearly impenetrable gatekeeping function, as the company's CyberArk Identity ensures continuous user identification, automatically tracking when end users leave sessions open and forcing them to re-authenticate each and every time.
Hackers, from common criminals to nation-states, have kept network guardians like CyberArk on their toes. In Israel and internationally, CyberArk has focused from the outset on protecting sensitive organizational data and assets. The company is not afraid to continuously innovate and it works diligently to keep up with - and even stay ahead of - the adoption of new digital transformation technologies by CyberArk's many customers.
Moreover, it's evident that CyberArk is on firm financial footing. In 2021's third quarter, the company's subscription revenue totaled $35.3 million, for an increase of 143% year over year.
Also, the company is transitioning successfully towards a more subscription-based business model, and it's going quite well so far: 73% of CyberArk's Q3 2021 revenue was recurring revenue.
According to TipRanks, recent investor sentiment has been very positive on CyberArk. Plus, analysts on Wall Street are preparing for CYBR stock to potentially reach above $217.
Priced at $173.28 at the end of 2021, CYBR might not be the cheapest stock on this list. However, there's room for price appreciation as CyberArk's subscription-based revenue-generation strategy should provide outstanding shareholder value in the new year.
Tel Aviv-headquartered Wix.com should appeal to the do-it-yourself-er in all of us. Practically everything is done online nowadays - especially in the era of the COVID-19 pandemic - and today's businesses need highly appealing and functional websites.
Yet, not every company has the desire or the wherewithal to hire a tech team to build a web presence from scratch. That's perfectly fine, as Wix.com's easy-to-navigate online tools empower "any business, community or person" to "create their dreams online" (according to the company, at least).
Whether it's an online storefront, an interactive menu for a restaurant, a place to download your music or NFTs, or just about anything in between, Wix.com - which has been around since 2006 - takes the hassle and much of the expense out of site-building.
Truly, it's a timely business in the digital age and with over 215 million registered users, Wix.com is at once a category creator and dominator. It's also a global business, with 42% of Wix.com's revenue coming from outside North America.
As of Jan. 3, analysts on Wall Street were bracing for 49% upside in WIX stock, according to TipRanks. On top of that, the general opinion from the blogger community is bullish on Wix.com.
WIX stock landed at $157.79 at the end of 2021 after a challenging year for the investors - this suggests a prime buying opportunity as Wix.com continues to command respect and revenue from do-it-yourself-ers worldwide.
Tower Semiconductor Ltd. (NASDAQ:TSEM)
The name speaks for itself: Tower Semiconductor is an independent semiconductor foundry, which will certainly be a high-demand business in a time when technology components are in short supply.
Established in 1993 and based in Migdal Haemek, Israel, Tower Semiconductor develops and provides a broad variety of semiconductor-related solutions with applications across the automotive; consumer; medical; industrial; aerospace and defense; and other sectors.
Currently, the company operates two manufacturing facilities in Israel, two in the U.S., and three in Japan. Also, Tower Semiconductor owns 51% of TPSCo, whose fabs in Hokuriku, Japan, have been manufacturing large-scale integrated circuits for over 35 years.
Perhaps the most exciting aspect of Tower Semiconductor's business is the company's automotive technology. In particular, Tower Semiconductor recently revealed its PH18 Silicon Photonics platform, a breakthrough development of lidar technology designed for advanced driver-assistance systems and, ultimately, self-driving cars.
On the financial front, it certainly appears that Tower Semiconductor is firing on all cylinders. During 2021's third quarter, the company achieved revenue of $387 million, reflecting another quarter of record revenue for the company while marking, year-over-year, 40% organic growth and 25% total growth.
TipRanks's data found that the sentiment concerning Tower Semiconductor has been very positive lately, and that Wall Street's analysts generally expect TSEM stock to reach $47.
Finishing 2021 at $39.68, TSEM stock is cheap in more ways than one. Tower Semiconductor's year-end trailing 12-month price-to-earnings ratio was just 33.37, indicating a relative bargain for value-focused international investors.
Nano Dimension (NASDAQ:NNDM)
Some folks might call Nano Dimension a 3D printing company. However, we could more accurately say that Nano Dimension provides additive electronics in Israel and internationally.
Founded in 2012 and headquartered in Ness Ziona, Israel, Nano Dimension has replaced traditional outsourced prototyping with in-house precision additive manufacturing technology for printed electronics. This has provided the company - and ultimately, its end users - with a streamlined process for time and cost savings.
The company's most well-known product is known as the Dragonfly IV. It's a fabrication device that enables a one-step manufacturing process for additively manufactured electronics from digital design to functional devices.
Nano Dimension also offers its FLIGHT software suite, which enables the 3D design of electrical and mechanical features in 3D space while ensuring that the product designs comply with the printer’s requirements. Then, the design can then proceed directly to production on the DragonFly IV.
So clearly, Nano Dimension needn't be pigeonholed as "just a 3D printing company" - though of course, there's nothing wrong with making a forward-thinking investment in an Israeli 3D printing up-and-comer.
Delving into data provided by TipRanks, it was discovered that the prevailing sentiment among bloggers on Nano Dimension was generally bullish. Additionally, hedge fund activity concerning Nano Dimension had increased by 2.4 million shares during the last quarter, as of Jan. 3.
Astoundingly, Nano Dimension's revenue increased 206% year-over-year in 2021's third quarter. Yet, NNDM stock ended 2021 at the ultra-affordable price of $3.80 - a rare opportunity for today's enterprising tech-market traders.
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