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CyberArk (CYBR) Gains As Market Dips: What You Should Know

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CyberArk (CYBR - Free Report) closed the most recent trading day at $118.38, moving +1.15% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.61%. Elsewhere, the Dow lost 0.72%, while the tech-heavy Nasdaq lost 0.56%.

Heading into today, shares of the maker of software that detects attacks on privileged accounts had gained 5.68% over the past month, lagging the Computer and Technology sector's gain of 7.18% and trading in line with the S&P 500.

Investors will be hoping for strength from CYBR as it approaches its next earnings release. In that report, analysts expect CYBR to post earnings of $0.41 per share. This would mark year-over-year growth of 28.13%. Our most recent consensus estimate is calling for quarterly revenue of $92.35 million, up 28.66% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $1.98 per share and revenue of $413.82 million, which would represent changes of -3.88% and +20.58%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for CYBR. 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 company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. CYBR is currently sporting a Zacks Rank of #2 (Buy).

Investors should also note CYBR's current valuation metrics, including its Forward P/E ratio of 59.01. For comparison, its industry has an average Forward P/E of 44.01, which means CYBR is trading at a premium to the group.

We can also see that CYBR currently has a PEG ratio of 2.87. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Security was holding an average PEG ratio of 2.48 at yesterday's closing price.

The Security industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 176, which puts it in the bottom 31% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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