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CyberArk (CYBR) Laps the Stock Market: Here's Why

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CyberArk (CYBR - Free Report) closed at $456.56 in the latest trading session, marking a +1.05% move from the prior day. The stock exceeded the S&P 500, which registered a gain of 0.64% for the day. Meanwhile, the Dow experienced a rise of 0.47%, and the technology-dominated Nasdaq saw an increase of 0.52%.

Shares of the maker of software that detects attacks on privileged accounts witnessed a gain of 2.67% over the previous month, beating the performance of the Computer and Technology sector with its gain of 1.98%, and underperforming the S&P 500's gain of 3%.

Analysts and investors alike will be keeping a close eye on the performance of CyberArk in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $1.13, reflecting a 41.25% increase from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $359.28 million, indicating a 14.28% growth compared to the corresponding quarter of the prior year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $4.15 per share and revenue of $1.33 billion. These totals would mark changes of +36.96% and +33.31%, respectively, from last year.

Any recent changes to analyst estimates for CyberArk should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 25% higher. CyberArk is currently a Zacks Rank #2 (Buy).

In terms of valuation, CyberArk is presently being traded at a Forward P/E ratio of 108.87. This valuation marks a premium compared to its industry average Forward P/E of 55.01.

Meanwhile, CYBR's PEG ratio is currently 4.48. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Security industry currently had an average PEG ratio of 2.65 as of yesterday's close.

The Security industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 57, this industry ranks in the top 24% of all industries, numbering over 250.

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.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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