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

Zacks Equity Research
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

CyberArk (CYBR) closed at $129.01 in the latest trading session, marking a -0.19% move from the prior day. This change lagged the S&P 500's 0.1% gain on the day. At the same time, the Dow added 0.15%, and the tech-heavy Nasdaq lost 0.66%.

Heading into today, shares of the maker of software that detects attacks on privileged accounts had gained 8.31% over the past month, outpacing the Computer and Technology sector's gain of 6.31% and the S&P 500's gain of 3.95% in that time.

Investors will be hoping for strength from CYBR as it approaches its next earnings release, which is expected to be May 14, 2019. The company is expected to report EPS of $0.41, up 28.13% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $92.35 million, up 28.66% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.98 per share and revenue of $413.82 million. These totals would mark changes of -3.88% and +20.58%, respectively, from last 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.

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.

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 currently has a Zacks Rank of #3 (Hold).

Investors should also note CYBR's current valuation metrics, including its Forward P/E ratio of 65.17. Its industry sports an average Forward P/E of 46.14, so we one might conclude that CYBR is trading at a premium comparatively.

Meanwhile, CYBR's PEG ratio is currently 3.17. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Security industry currently had an average PEG ratio of 2.89 as of yesterday's close.

The Security industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 38, which puts it in the top 15% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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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