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

Zacks Equity Research
Aaron's (AAN) reported earnings 30 days ago. What's next for the stock? We take a look at earnings estimates for some clues.

In the latest trading session, CyberArk (CYBR) closed at $121.89, marking a +0.4% move from the previous day. This change outpaced the S&P 500's 0.06% loss on the day. Elsewhere, the Dow lost 0.1%, while the tech-heavy Nasdaq lost 0.1%.

Heading into today, shares of the maker of software that detects attacks on privileged accounts had gained 7.25% over the past month, outpacing the Computer and Technology sector's gain of 5.14% and the S&P 500's gain of 4.3% in that time.

CYBR will be looking to display strength as it nears its next earnings release, which is expected to be May 14, 2019. 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.

Investors should also note any recent changes to analyst estimates for CYBR. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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 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. The Zacks Consensus EPS estimate remained stagnant within the past month. CYBR is currently a Zacks Rank #2 (Buy).

Valuation is also important, so investors should note that CYBR has a Forward P/E ratio of 61.22 right now. This represents a premium compared to its industry's average Forward P/E of 44.93.

It is also worth noting that CYBR currently has a PEG ratio of 2.98. 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 2.67 at yesterday's closing price.

The Security industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 74, putting it in the top 30% 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.

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


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