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CyberArk (CYBR) Dips More Than Broader Markets: What You Should Know

Zacks Equity Research
Healthcare Services (HCSG) delivered earnings and revenue surprises of -29.41% and -3.15%, respectively, for the quarter ended June 2019. Do the numbers hold clues to what lies ahead for the stock?

In the latest trading session, CyberArk (CYBR) closed at $113.02, marking a -0.15% move from the previous day. This change lagged the S&P 500's 0.08% loss on the day. Meanwhile, the Dow gained 0.06%, and the Nasdaq, a tech-heavy index, lost 0.07%.

Prior to today's trading, shares of the maker of software that detects attacks on privileged accounts had gained 8.74% over the past month. This has outpaced the Computer and Technology sector's gain of 3.22% and the S&P 500's gain of 0.52% in that time.

CYBR will be looking to display strength as it nears its next earnings release. On that day, CYBR is projected to report earnings of $0.41 per share, which would represent year-over-year growth of 28.13%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $92.35 million, up 28.66% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $1.98 per share and revenue of $413.82 million, which would represent changes of -3.88% and +20.58%, respectively, from the prior year.

Any recent changes to analyst estimates for CYBR should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. CYBR is currently sporting a Zacks Rank of #2 (Buy).

Investors should also note CYBR's current valuation metrics, including its Forward P/E ratio of 57.07. This valuation marks a premium compared to its industry's average Forward P/E of 44.31.

Also, we should mention that CYBR has a PEG ratio of 2.78. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Security was holding an average PEG ratio of 2.45 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 39, which puts it in the top 16% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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