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CyberArk (CYBR) Increases Yet Falls Behind Market: What Investors Need to Know

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CyberArk (CYBR - Free Report) closed the most recent trading day at $295.30, moving +0.29% from the previous trading session. The stock's change was less than the S&P 500's daily gain of 0.61%. Meanwhile, the Dow gained 0.97%, and the Nasdaq, a tech-heavy index, added 0.33%.

The maker of software that detects attacks on privileged accounts's shares have seen an increase of 7.96% over the last month, not keeping up with the Computer and Technology sector's gain of 8.6% and outstripping the S&P 500's gain of 5.36%.

The investment community will be paying close attention to the earnings performance of CyberArk in its upcoming release. The company is slated to reveal its earnings on November 13, 2024. In that report, analysts expect CyberArk to post earnings of $0.45 per share. This would mark year-over-year growth of 7.14%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $233.9 million, up 22.31% from the year-ago period.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $2.29 per share and revenue of $939.08 million. These totals would mark changes of +104.46% and +24.9%, respectively, from last year.

Any recent changes to analyst estimates for CyberArk should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. CyberArk is holding a Zacks Rank of #1 (Strong Buy) right now.

In terms of valuation, CyberArk is presently being traded at a Forward P/E ratio of 128.46. This indicates a premium in contrast to its industry's Forward P/E of 28.58.

It's also important to note that CYBR currently trades at a PEG ratio of 3.85. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Computers - IT Services industry held an average PEG ratio of 2.83.

The Computers - IT Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 46, putting it in the top 19% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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