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

Zacks Equity Research

In the latest trading session, CyberArk (CYBR) closed at $110.65, marking a -0.08% move from the previous day. This change lagged the S&P 500's 0.3% gain on the day. At the same time, the Dow lost 0.38%, and the tech-heavy Nasdaq gained 0.44%.

Heading into today, shares of the maker of software that detects attacks on privileged accounts had gained 24.09% over the past month, outpacing the Computer and Technology sector's gain of 4.56% and the S&P 500's gain of 2.91% in that time.

CYBR will be looking to display strength as it nears its next earnings release. In that report, analysts expect CYBR to post earnings of $0.41 per share. This would mark 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.

CYBR's full-year Zacks Consensus Estimates are calling for earnings of $1.98 per share and revenue of $413.82 million. These results would represent year-over-year changes of -3.88% and +20.58%, respectively.

It is also important to note the recent changes to analyst estimates for CYBR. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 has moved 17.82% higher. CYBR currently has a Zacks Rank of #2 (Buy).

Looking at its valuation, CYBR is holding a Forward P/E ratio of 55.83. Its industry sports an average Forward P/E of 45.16, so we one might conclude that CYBR is trading at a premium comparatively.

Investors should also note that CYBR has a PEG ratio of 2.72 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. The Security was holding an average PEG ratio of 2.38 at yesterday's closing price.

The Security industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 17, putting 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.

To follow CYBR in the coming trading sessions, be sure to utilize Zacks.com.

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