In the latest close session, CyberArk (CYBR) was down 2.12% at $507.98. This change lagged the S&P 500's 1.17% loss on the day. On the other hand, the Dow registered a loss of 0.53%, and the technology-centric Nasdaq decreased by 2.04%.
Shares of the maker of software that detects attacks on privileged accounts witnessed a gain of 3.16% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 5.49%, and outperforming the S&P 500's gain of 2.12%.
The investment community will be paying close attention to the earnings performance of CyberArk in its upcoming release. 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%. Simultaneously, our latest consensus estimate expects the revenue to be $327.05 million, showing a 36.21% escalation compared to the year-ago quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $3.86 per share and revenue of $1.33 billion. These totals would mark changes of +27.39% and +32.53%, respectively, from last year.
Investors should also pay attention to any latest changes in analyst estimates for CyberArk. 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 business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.9% increase. CyberArk is currently a Zacks Rank #4 (Sell).
Digging into valuation, CyberArk currently has a Forward P/E ratio of 134.6. This valuation marks a premium compared to its industry average Forward P/E of 74.85.
We can additionally observe that CYBR currently boasts a PEG ratio of 5.54. 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 of the close of trade yesterday, the Security industry held an average PEG ratio of 2.92.
The Security industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 163, putting it in the bottom 35% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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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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