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Why CyberArk (CYBR) Dipped More Than Broader Market Today

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CyberArk (CYBR - Free Report) closed the most recent trading day at $383.05, moving -1.4% from the previous trading session. This move lagged the S&P 500's daily loss of 0.22%. At the same time, the Dow added 0.08%, and the tech-heavy Nasdaq lost 0.51%.

Heading into today, shares of the maker of software that detects attacks on privileged accounts had gained 3.92% over the past month, outpacing the Computer and Technology sector's gain of 2.98% and the S&P 500's gain of 0.45%.

The upcoming earnings release of CyberArk will be of great interest to investors. The company's upcoming EPS is projected at $0.79, signifying a 46.30% increase compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $315.43 million, reflecting a 40.37% rise from the equivalent quarter last year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $3.81 per share and a revenue of $1.32 billion, representing changes of +25.74% and +31.88%, respectively, from the prior year.

Investors should also pay attention to any latest changes in analyst estimates for CyberArk. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 32.12% increase. Currently, CyberArk is carrying a Zacks Rank of #2 (Buy).

With respect to valuation, CyberArk is currently being traded at a Forward P/E ratio of 102.04. Its industry sports an average Forward P/E of 74.67, so one might conclude that CyberArk is trading at a premium comparatively.

Investors should also note that CYBR has a PEG ratio of 4.2 right now. 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. The Security industry had an average PEG ratio of 3.03 as trading concluded yesterday.

The Security industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 27, finds itself in the top 11% echelons 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.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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