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Why CyberArk (CYBR) Outpaced the Stock Market Today

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In the latest trading session, CyberArk (CYBR - Free Report) closed at $338, marking a +0.67% move from the previous day. The stock's performance was ahead of the S&P 500's daily gain of 0.55%. Elsewhere, the Dow gained 1.01%, while the tech-heavy Nasdaq lost 0.14%.

Shares of the maker of software that detects attacks on privileged accounts have depreciated by 7.73% over the course of the past month, outperforming the Computer and Technology sector's loss of 8.88% and lagging the S&P 500's loss of 6.22%.

The upcoming earnings release of CyberArk will be of great interest to investors. The company's earnings per share (EPS) are projected to be $0.80, reflecting a 6.67% increase from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $305.65 million, up 37.96% from the year-ago period.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $3.64 per share and a revenue of $1.32 billion, representing changes of +20.13% and +31.43%, respectively, from the prior year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts 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 take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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 past month, there's been a 7.25% rise in the Zacks Consensus EPS estimate. CyberArk is currently sporting a Zacks Rank of #3 (Hold).

In the context of valuation, CyberArk is at present trading with a Forward P/E ratio of 92.14. This signifies a premium in comparison to the average Forward P/E of 60.54 for its industry.

Meanwhile, CYBR's PEG ratio is currently 4.61. 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. The Security was holding an average PEG ratio of 3.08 at yesterday's closing price.

The Security industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 142, which puts it in the bottom 44% of all 250+ industries.

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

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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