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CyberArk (CYBR) Soars 5.6%: Is Further Upside Left in the Stock?

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CyberArk (CYBR - Free Report) shares rallied 5.6% in the last trading session to close at $132.88. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 9.5% loss over the past four weeks.

CyberArk’s stock appreciated on continued optimism surrounding the demand for its products and solutions. The company is benefiting from rising demand for cyber security solutions owing to the long list of data breaches.

Increasing demand for privileged access security on the back of digital transformation and cloud migration strategies remain a key growth driver. Moreover, strong presence across verticals such as banking, healthcare, government and utilities, are safeguarding CyberArk from negative effects of the macroeconomic and geopolitical headwinds.

This maker of software that detects attacks on privileged accounts is expected to post quarterly loss of $0.26 per share in its upcoming report, which represents a year-over-year change of +13.3%. Revenues are expected to be $162.1 million, up 27.1% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For CyberArk, the consensus EPS estimate for the quarter has been revised 1.5% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on CYBR going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

CyberArk belongs to the Zacks Computers - IT Services industry. Another stock from the same industry, Endava PLC Sponsored ADR (DAVA - Free Report) , closed the last trading session 6.2% lower at $52.14. Over the past month, DAVA has returned -8.9%.

Endava PLC Sponsored ADR's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.64. Compared to the company's year-ago EPS, this represents no change. Endava PLC Sponsored ADR currently boasts a Zacks Rank of #4 (Sell).

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