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CyberArk and Ecopetrol have been highlighted as Zacks Bull and Bear of the Day

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For Immediate Release

Chicago, IL – June 3, 2025 – Zacks Equity Research shares CyberArk Software (CYBR - Free Report) as the Bull of the Day and Ecopetrol (EC - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Kontoor Brands, Inc. (KTB - Free Report) , GDEV Inc. (GDEV - Free Report) and Netflix, Inc. (NFLX - Free Report) .

Here is a synopsis of all five stocks.

Bull of the Day:

Zacks Rank #1 (Strong Buy) stock CyberArk Software is an Israeli-based company that provides its clients with information technology security solutions. CyberArk is a vital security to more than 5,400 global businesses, including over half of the Fortune 500 and over 35% of Global 2000 companies.

The company specializes in Privileged Access Management (PAM), which allows businesses to secure, manage, and monitor identities (human and machine) that have elevated or “privileged” access to critical systems and sensitive data. CYBR’s PAM cyber security technology acts as a gatekeeper that stops unauthorized access and malicious activities by controlling who can access what, when, and for how long, dramatically decreasing the risk of cyberattacks through false identities and backdoors.

Global Cyber Data Breaches are Rising

Over the past decade, one of the most consistent, robust, and predictable trends has been that the number of data breaches has increased. Since 2012, the number of data breaches in the United States has increased annually, soaring from 444 in 2012 to over 3,000 in 2023.

The advent of cloud computing has dramatically increased global cybersecurity needs. Though the industry is competitive, CyberArk’s security infrastructure helps the company carve out a niche by allowing companies to protect against, detect, and respond to cyber-attacks before sensitive data is compromised.

Because of its unique niche and powerful MOAT, CYBR has been one of the best ways to bet on growing cyber security demand and will continue to be in the future. In fact, CYBR has tripled its annual revenue from ~$400 million in 2020 to an expected ~1.2 billion in 2025.

The Advent of “BYOD” & Hybrid Work Boosts CyberArk

Cyber security became more complicated after the COVID-19 pandemic forced many companies to adopt work-from-home policies. Not only did employees begin working from remote locations, many companies began allowing employees to BYOD (bring your own device). With more employees out of the office than ever, companies are forced to enforce stricter data-security measures – a trend unlikely to end any time soon.

CYBR Beats the Street

CyberArk has not only grown revenue at a brisk and consistent pace, but has also consistently beat Wall Street analyst expectations. The company has beaten Zacks Consensus Analyst Estimates for five consecutive quarters, with an average surprise of 44.33% over the past four quarters.

CYBR Carves Out a Cup-with-Handle Base Structure

CYBR shares have exhibited extreme relative price strength and outperforms over 90% of S&P 500 stocks. In addition, the stock is building a picture-perfect cup-with-handle base structure.

CYBR Has a Strong Balance Sheet

CyberArk has a strong balance sheet, with ample liquidity, and no debt obligations. The company’s increasing liquidity illustrates that management is making sound investments and cash flow is moving in the right direction.

Bottom Line

With the rise of cloud computing and hybrid work models, cyber security threats are soaring. With its strong foothold in the Privileged Access Management (PAM) niche, CyberArk Software is poised to continue to be a leader in its industry.

Bear of the Day:

Zacks Rank #5 (Strong Sell) stock Ecopetrol is a Colombian-based integrated oil and gas company with global operations in areas including the United States, Brazil, and Peru. The company is focused on identifying energy extraction opportunities primarily within the easter Llanos Basin of Colombia, and in other areas in Colombia and Northern Peru. EC’s operations include extracting, collecting, treating, storing, and pumping or compressing hydrocarbons. In addition, Ecopetrol has over 160 production fields concentrated in Magdalena, the eastern Caribbean, and the provinces of Putumayo, Cesar and Norte de Santander. Recently, Ecopetrol began purchasing renewable energy assets as the company looks to diversify beyond its traditional oil and gas operations.

Trump Administration Seeks to Roll Back Alaska Oil Restraints

A hot political point of contention in the United States has been whether to allow oil drilling in Alaska. Environmentalists on the left have argued against drilling to preserve wildlife and the environment, while conservatives have pushed for an easing of restrictions. Monday, the Trump administration announced that it will be removing the Biden-era ban on oil drilling (as promised and expected). Though Alaska’s ~9 billion barrels of recoverable oil pale in comparison to oil-rich countries like Saudi Arabia and Canada, the news will help Donald Trump deliver on his promise to let companies “Drill, baby, drill.” More oil supply on the global market will increase oil supply and pressure prices.

EC Exhibits Relative Weakness Versus Stock Market and Oil

The most straightforward way to determine whether a stock is a winner is to monitor its relative price action versus the general market and the industry. EC shares have flushed 30% over the past year. Meanwhile, the Global X MSCI Colombia ETFis up 7%, and the United States Oil Fund ETF is essentially flat. Zooming into the short-term, and the technical picture does not get any brighter. On Monday, crude oil jumped by 3.5%, and EC mustered a gain of just 0.35%. To make matters worse, the stock is carving out a dangerous-looking bear flag chart pattern.

Ecopetrol Acquisitions Lead to High Debt

The debt-to-equity ratio measures a company’s long-term debt divided by total shareholder equity. While Ecopetrol’s renewable energy acquisitions have yielded little in the way of earnings thus far, they have led to a soaring debt-to-equity ratio.

Ecopetrol's Governance & Social Impact Cause Issues

Several shakeups within the EC management team have occurred in recent months, which is never a welcome sign for investors. In addition, the company faces an internal debate about how much it wants to balance its legacy fossil fuel energy business with its new and costly renewable energy transition efforts.

Bottom Line

Given Ecopetrol’s Zacks Rank #5 (Strong Sell) and the numerous headwinds it faces – from underperforming the broader market and oil prices to mounting debt from its renewable energy ventures and recent management instability – investors should exercise extreme caution.

Additional content:

3 Discretionary Stocks to Buy as Inflation Continues to Cool

Inflation is finally showing signs of cooling, and consumer spending is increasing. The Commerce Department reported on Friday that inflation rose only slightly in April, a positive sign for the economy after it contracted in the first quarter of 2025.

President Donald Trump’s tariffs, which were announced in early April, have been put on hold as trade negotiations with several countries are ongoing. Also, consumer confidence rebounded in May, indicating that people now have more faith in the economy’s prospects.

Given the positive sentiment, it would be prudent to invest in consumer discretionary stocks such asKontoor Brands, Inc., GDEV Inc. and Netflix, Inc.

These stocks have seen positive earnings estimate revisions in the last 60 days. Each of our picks carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Inflation Slows Further in April

The Commerce Department reported that in April, the personal consumption expenditure (PCE) index, the Federal Reserve’s key inflation gauge, rose 0.1% sequentially and 2.1% from year-ago levels, after increasing 2.3% in March.

Core PCE, which strips out the volatile food and energy components, rose 0.1% month over month in April and 2.5% from the year-ago levels, the smallest advance since March 2021. The Federal Reserve tracks PCE for its 2% inflation target. April’s reading suggests inflation is on track to meet the Fed’s target. Consumer spending slowed in April but still increased 0.2% month over month. Personal income also rose 0.8% sequentially in April.

Inflation has been showing signs of cooling over the past few months. However, sweeping tariffs announced by Trump in early April rattled Wall Street as concerns grew that higher import duties could trigger inflation and push the economy into a recession.

However, those fears have subsided over the past month after the tariffs were temporarily paused and the United States initiated trade talks with several countries, including China. The White House also announced a trade deal with the UK last month. Slowing inflation and fading trade war fears have raised hopes that the Federal Reserve could soon resume its rate cuts. Also, higher personal income and consumer spending signal a resilient economy.

3 Discretionary Stocks with Growth Potential

Given the positive sentiment, it would be ideal to invest in consumer discretionary stocks.

Kontoor Brands

Kontoor Brands, Inc. is an apparel company. KTB designs, manufactures and distributes products. KTB’s brand consists of Wrangler, Lee and Rock & Republic. Kontoor Brands Inc. is based in Greensboro.

Kontoor Brands’ expected earnings growth rate for the current year is 9.6%. The Zacks Consensus Estimate for current-year earnings has improved 2.9% over the past 60 days. KTB currently carries a Zacks Rank #2.

GDEV Inc.

GDEV Inc. is a gaming and entertainment powerhouse, focused on growing and enhancing its portfolio of studios. GDEV’s diverse range of subsidiaries, including Nexters, Cubic Games, Dragon Machines and more.

GDEV’s expected earnings growth rate for the current year is 58%. The Zacks Consensus Estimate for current-year earnings has improved 21.8% over the past 60 days. GDEV currently carries a Zacks Rank #2.

Netflix

Netflix, Inc. is considered a pioneer in the streaming space. NFLX has been spending aggressively on building its portfolio of original shows. This is helping Netflix sustain its leading position despite the launch of new services like Disney+ and Apple TV+, as well as existing services like Amazon Prime Video.

Netflix’s expected earnings growth rate for the current year is 27.7%. The Zacks Consensus Estimate for current-year earnings has improved 3% over the past 60 days. NFLX currently carries a Zacks Rank #2.

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