CyberArk (CYBR) closed at $491.30 in the latest trading session, marking a -2.52% move from the prior day. The stock trailed the S&P 500, which registered a daily loss of 0.16%. On the other hand, the Dow registered a gain of 0.44%, and the technology-centric Nasdaq decreased by 0.76%.
Shares of the maker of software that detects attacks on privileged accounts witnessed a gain of 5.9% over the previous month, beating the performance of the Computer and Technology sector with its gain of 3.34%, and the S&P 500's gain of 1.14%.
The investment community will be closely monitoring the performance of CyberArk in its forthcoming earnings report. On that day, CyberArk is projected to report earnings of $0.92 per share, which would represent a year-over-year decline of 2.13%. Alongside, our most recent consensus estimate is anticipating revenue of $327.05 million, indicating a 36.21% upward movement from the same quarter last year.
CYBR's full-year Zacks Consensus Estimates are calling for earnings of $3.86 per share and revenue of $1.33 billion. These results would represent year-over-year changes of +27.39% and +32.53%, respectively.
Any recent changes to analyst estimates for CyberArk should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 66.92% lower. CyberArk is currently a Zacks Rank #4 (Sell).
Digging into valuation, CyberArk currently has a Forward P/E ratio of 130.72. For comparison, its industry has an average Forward P/E of 70.9, which means CyberArk is trading at a premium to the group.
It is also worth noting that CYBR currently has a PEG ratio of 5.38. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Security industry was having an average PEG ratio of 2.82.
The Security industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 211, placing it within the bottom 15% of over 250 industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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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CyberArk Software Ltd. (CYBR): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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