In the latest trading session, CyberArk (CYBR) closed at $76.81, marking a +1.43% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.04%. Meanwhile, the Dow lost 0.22%, and the Nasdaq, a tech-heavy index, added 0.16%.
Heading into today, shares of the maker of software that detects attacks on privileged accounts had gained 1.5% over the past month, outpacing the Computer and Technology sector's loss of 4.01% and the S&P 500's loss of 4.99% in that time.
Investors will be hoping for strength from CYBR as it approaches its next earnings release, which is expected to be February 21, 2019. In that report, analysts expect CYBR to post earnings of $0.59 per share. This would mark year-over-year growth of 43.9%. Meanwhile, our latest consensus estimate is calling for revenue of $95.78 million, up 19.17% from the prior-year quarter.
CYBR's full-year Zacks Consensus Estimates are calling for earnings of $1.76 per share and revenue of $329.77 million. These results would represent year-over-year changes of +51.72% and +26.01%, respectively.
It is also important to note the 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Within the past 30 days, our consensus EPS projection remained stagnant. CYBR is currently a Zacks Rank #2 (Buy).
Valuation is also important, so investors should note that CYBR has a Forward P/E ratio of 42.97 right now. For comparison, its industry has an average Forward P/E of 47.51, which means CYBR is trading at a discount to the group.
Also, we should mention that CYBR has a PEG ratio of 2.58. 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 industry currently had an average PEG ratio of 2.61 as of yesterday's close.
The Security industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 28, which puts it in the top 11% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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