CyberArk (CYBR) Outperforms Broader Market: What You Need to Know
CyberArk (CYBR) closed the most recent trading day at $485.95, moving +1.21% from the previous trading session. The stock outperformed the S&P 500, which registered a daily gain of 0.48%. Elsewhere, the Dow saw an upswing of 0.27%, while the tech-heavy Nasdaq appreciated by 0.94%.
Shares of the maker of software that detects attacks on privileged accounts have appreciated by 9.45% over the course of the past month, outperforming the Computer and Technology sector's gain of 5.46%, and the S&P 500's gain of 2.46%.
Market participants will be closely following the financial results of CyberArk in its upcoming release. On that day, CyberArk is projected to report earnings of $0.93 per share, which would represent a year-over-year decline of 1.06%. Meanwhile, our latest consensus estimate is calling for revenue of $327 million, up 36.19% from the prior-year quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $3.87 per share and a revenue of $1.32 billion, indicating changes of +27.72% and +32.39%, respectively, from the former year.
Investors should also note any recent changes to analyst estimates for CyberArk. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 6.19% decrease. Right now, CyberArk possesses a Zacks Rank of #3 (Hold).
In terms of valuation, CyberArk is presently being traded at a Forward P/E ratio of 124.17. This denotes a premium relative to the industry average Forward P/E of 65.2.
Investors should also note that CYBR has a PEG ratio of 5.11 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As the market closed yesterday, the Security industry was having an average PEG ratio of 2.7.
The Security industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 52, placing it within the top 22% of over 250 industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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CyberArk Software Ltd. (CYBR) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).