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CyberArk (CYBR) Exceeds Market Returns: Some Facts to Consider

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The most recent trading session ended with CyberArk (CYBR - Free Report) standing at $319.15, reflecting a +1.26% shift from the previouse trading day's closing. The stock outpaced the S&P 500's daily gain of 1.09%. Meanwhile, the Dow experienced a rise of 1.18%, and the technology-dominated Nasdaq saw an increase of 1.03%.

Prior to today's trading, shares of the maker of software that detects attacks on privileged accounts had lost 4.24% over the past month. This has lagged the Computer and Technology sector's gain of 1.8% and the S&P 500's loss of 0.71% in that time.

Analysts and investors alike will be keeping a close eye on the performance of CyberArk in its upcoming earnings disclosure. The company is expected to report EPS of $0.71, down 12.35% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $301.05 million, showing a 34.94% escalation compared to the year-ago quarter.

For the full year, the Zacks Consensus Estimates are projecting earnings of $2.94 per share and revenue of $987.46 million, which would represent changes of +162.5% and +31.33%, respectively, from the prior year.

Investors should also take note of any recent adjustments to analyst estimates for CyberArk. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, there's been a 6.82% rise in the Zacks Consensus EPS estimate. As of now, CyberArk holds a Zacks Rank of #3 (Hold).

From a valuation perspective, CyberArk is currently exchanging hands at a Forward P/E ratio of 107.09. This indicates a premium in contrast to its industry's Forward P/E of 28.98.

It's also important to note that CYBR currently trades at a PEG ratio of 5.35. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Computers - IT Services industry was having an average PEG ratio of 2.79.

The Computers - IT Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 71, putting it in the top 29% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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