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CyberArk (CYBR) Gains As Market Dips: What You Should Know

Zacks Equity Research

CyberArk (CYBR) closed the most recent trading day at $146.97, moving +1.46% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.53%. Meanwhile, the Dow lost 0.47%, and the Nasdaq, a tech-heavy index, lost 1%.

Coming into today, shares of the maker of software that detects attacks on privileged accounts had gained 17.25% in the past month. In that same time, the Computer and Technology sector gained 3.84%, while the S&P 500 gained 2.68%.

Wall Street will be looking for positivity from CYBR as it approaches its next earnings report date. This is expected to be August 7, 2019. The company is expected to report EPS of $0.47, up 30.56% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $97.21 million, up 25.09% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.14 per share and revenue of $417.83 million. These totals would mark changes of +3.88% and +21.75%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for CYBR. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. Within the past 30 days, our consensus EPS projection remained stagnant. CYBR is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, CYBR is currently trading at a Forward P/E ratio of 67.61. This represents a premium compared to its industry's average Forward P/E of 41.71.

We can also see that CYBR currently has a PEG ratio of 4.28. 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 2.41 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 63, which puts it in the top 25% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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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