In the latest close session, CyberArk (CYBR) was up +1.54% at $519.81. This change outpaced the S&P 500's 1.23% gain on the day. At the same time, the Dow added 0.72%, and the tech-heavy Nasdaq gained 1.86%.
Prior to today's trading, shares of the maker of software that detects attacks on privileged accounts had gained 6.55% outpaced the Computer and Technology sector's gain of 3.49% and the S&P 500's gain of 2.45%.
The upcoming earnings release of CyberArk will be of great interest to investors. The company's earnings per share (EPS) are projected to be $0.92, reflecting a 2.13% decrease from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $327.05 million, up 36.21% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $3.86 per share and a revenue of $1.33 billion, representing changes of +27.39% and +32.53%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for CyberArk. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.9% increase. Currently, CyberArk is carrying a Zacks Rank of #5 (Strong Sell).
Valuation is also important, so investors should note that CyberArk has a Forward P/E ratio of 132.77 right now. This indicates a premium in contrast to its industry's Forward P/E of 72.76.
We can additionally observe that CYBR currently boasts a PEG ratio of 5.46. 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. As the market closed yesterday, the Security industry was having an average PEG ratio of 2.87.
The Security industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 209, this industry ranks in the bottom 16% of all industries, numbering over 250.
The Zacks Industry Rank is ordered 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.
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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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