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CyberArk (CYBR) Declines More Than Market: Some Information for Investors

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In the latest trading session, CyberArk (CYBR - Free Report) closed at $475.19, marking a -1.35% move from the previous day. The stock's performance was behind the S&P 500's daily loss of 0.29%. Meanwhile, the Dow experienced a drop of 0.37%, and the technology-dominated Nasdaq saw a decrease of 0.34%.

The maker of software that detects attacks on privileged accounts's stock has climbed by 9.96% in the past month, exceeding the Computer and Technology sector's gain of 8.98% and the S&P 500's gain of 3.08%.

Analysts and investors alike will be keeping a close eye on the performance of CyberArk in its upcoming earnings disclosure. On that day, CyberArk is projected to report earnings of $0.93 per share, which would represent a year-over-year decline of 1.06%. Simultaneously, our latest consensus estimate expects the revenue to be $327 million, showing a 36.19% escalation compared to the year-ago quarter.

For the full year, the Zacks Consensus Estimates are projecting earnings of $3.87 per share and revenue of $1.32 billion, which would represent changes of +27.72% and +32.39%, respectively, from the prior year.

Investors should also pay attention to any latest changes in analyst estimates for CyberArk. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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 remained unchanged. CyberArk is currently a Zacks Rank #3 (Hold).

With respect to valuation, CyberArk is currently being traded at a Forward P/E ratio of 124.57. Its industry sports an average Forward P/E of 66.51, so one might conclude that CyberArk is trading at a premium comparatively.

Also, we should mention that CYBR has a PEG ratio of 5.12. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Security industry was having an average PEG ratio of 2.78.

The Security industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 81, which puts it in the top 33% 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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