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CyberArk (CYBR) Outpaces Stock Market Gains: What You Should Know

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

CyberArk (CYBR) closed the most recent trading day at $89.60, moving +1.31% from the previous trading session. This change outpaced the S&P 500's 0.47% gain on the day. Elsewhere, the Dow gained 0.68%, while the tech-heavy Nasdaq added 0.74%.

Prior to today's trading, shares of the maker of software that detects attacks on privileged accounts had gained 21.52% over the past month. This has outpaced the Computer and Technology sector's gain of 9.76% and the S&P 500's gain of 7.71% in that time.

Investors will be hoping for strength from CYBR as it approaches its next earnings release, which is expected to be February 14, 2019. In that report, analysts expect CYBR to post earnings of $0.59 per share. This would mark year-over-year growth of 43.9%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $95.78 million, up 19.17% from the year-ago period.

It is also important to note the recent changes to analyst estimates for CYBR. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 a Zacks Rank #2 (Buy).

Valuation is also important, so investors should note that CYBR has a Forward P/E ratio of 47.06 right now. For comparison, its industry has an average Forward P/E of 47.06, which means CYBR is trading at a no noticeable deviation to the group.

Investors should also note that CYBR has a PEG ratio of 2.82 right now. 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. Security stocks are, on average, holding a PEG ratio of 2.41 based on yesterday's closing prices.

The Security industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 16, which puts it in the top 7% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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