With inflation in Israel back inside the target range and rate cuts on the table, the ground is quietly shifting for rate sensitive stocks. Lower borrowing costs can change how real estate, growth tech and local consumer companies are valued, which can reward investors who spot the turn early and punish those who ignore it. This article walks through 3 stocks exposed to this macro news and explains why they stand out on our screener.
The 3 stocks below are just a starting sample from this idea, and the full screen surfaced 2 more Israeli rate sensitive companies with equally interesting stories that are not covered in the article. To identify your own highest conviction targets, head straight into the Israeli Rate‑Sensitive Equities (Real Estate, Growth Tech, Domestic Consumer) screener.
Alarum Technologies (TASE:ALAR)
Overview: Alarum Technologies is an Israel based web data company that helps businesses collect large volumes of public online data safely and at scale using a global network of residential, mobile and data center proxies, plus tools for search results, social data, website access and AI ready datasets. Its infrastructure supports use cases across advertising, finance, cyber security, e commerce, digital monitoring and AI workloads for customers around the world.
Market Cap: ₪39 million
Alarum Technologies sits at the intersection of two powerful trends: large scale AI training and the growing need for compliant access to public web data. Yet it trades on a P/E of 11.6x that is well below broader software peers and our fair value estimate. Forecast revenue growth of around 20.39% a year and high judged earnings quality are offset by thin 2.5% net margins, low 3.4% ROE and a funding structure that relies entirely on external borrowing, which raises financial risk. On top of that, the stock has recently been hit by sharp volatility and serious legal and regulatory headlines around its NetNut proxy unit and class action claims. For investors who can handle this mix of growth potential and controversy, the full story behind Alarum may be worth a closer look.
Accelerating AI data demand and an 11.6x P/E leave Alarum Technologies looking mispriced on more than just headlines. Get the full 2 key rewards and 2 important warning signs (1 is major!) investors often miss until it is too late.
Build your own AI data opportunity shortlist
Alarum Technologies and the two other stocks in this list all came out of a single screen, but the real edge is in shaping filters around your own process. Use our flexible Screener to mix valuation, growth, quality and risk checks into your own watchlist, or start with one of our curated Investing Ideas.
Nayax (TASE:NYAX)
Overview: Nayax is a Herzliya based fintech company that powers unattended retail and self service commerce, providing point of sale terminals, cashless payments, management software and consumer apps for vending machines, kiosks, EV charging stations and other automated devices worldwide.
Operations: Nayax generates about $453 million in revenue from Internet Software and Services, reflecting its focus on recurring payment processing, SaaS and related fintech solutions.
Market Cap: ₪5.7 billion
Nayax provides exposure to the shift toward contactless and unattended payments at scale, with 1.55 million connected devices, 125,000 customers and revenue guidance of $510 million to $520 million for 2026. The appeal is the growing share of higher margin recurring processing and SaaS revenue, supported by expansion into EV charging, embedded financial services and AI powered tools like the MoMa assistant. Set against this are real pressures. Net margin is thin at 1.7%, the company reported a loss of $10.12 million in Q2, funding relies fully on external borrowing and there has been meaningful insider selling. In a lower rate backdrop that can support growth tech valuations, that mix of strong top line growth with balance sheet and execution risk presents a trade off for investors to evaluate.
Nayax’s fast growing device base and SaaS focus often pull attention away from the real story. Get the full picture with the analyst forecasts for Nayax and see what the revenue mix could be hiding.
NextVision Stabilized Systems (TASE:NXSN)
Overview: NextVision Stabilized Systems supplies compact stabilized day and night camera systems for drones and other ground and aerial platforms, giving defense and security customers high quality video feeds in challenging conditions. The company sells both the cameras and supporting accessories so system integrators can plug its payloads into a wide range of unmanned vehicles.
Operations: NextVision Stabilized Systems reports about $251 million in revenue from Electronic Security Devices, with sales spread across Europe, Israel, North America and other countries.
Market Cap: ₪18.5 billion
NextVision Stabilized Systems sits at the intersection of rising defense drone demand and easing Israeli macro risk, with profit margins around 60.6% and an order backlog that reaches into 2029. Analyst expectations indicate that earnings and revenue are both projected to grow faster than the wider Israeli market, yet the stock still carries a valuation debate, with some measures suggesting it trades richer than cash flow implies. Investors also need to weigh concentration in defense budgets, high non cash earnings and a balance sheet funded entirely by external borrowing. For investors comfortable with this mix of growth characteristics, quality attributes and funding risk, there is more to consider beneath the headline numbers.
NextVision’s high margins and long order book suggest a story that the headline valuation debate does not fully capture. Get the full 2 key rewards and 2 important warning signs (1 is major!) and see where funding risk and growth expectations truly intersect.
Seeking Fresh Alternatives Beyond These Three
Fresh opportunities do not sit still. Breakout moves, fading momentum and under the radar for now stories can get away quickly. Screen faster than the crowd and act promptly.
- Look for early upside in smaller companies that already have strong financials using the curated 218 elite penny stocks with strong financials before momentum accelerates and potential entry ranges move higher.
- Track where current earnings support AI-related activity and focus on cash-generating platforms filtered through the 75 profitable AI stocks that aren't just burning cash while it remains relevant and expectations are still evolving.
- Monitor potential regime shifts in energy and infrastructure with the focused 92 nuclear energy infrastructure stocks before sentiment changes and these stocks move out of the under-the-radar category.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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