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CyberArk Software Ltd. (CYBR) Hits Fresh High: Is There Still Room to Run?
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Shares of CyberArk (CYBR - Free Report) have been strong performers lately, with the stock up 12.3% over the past month. The stock hit a new 52-week high of $293.31 in the previous session. CyberArk has gained 30.8% since the start of the year compared to the 20.6% move for the Zacks Computer and Technology sector and the 3.9% return for the Zacks Computers - IT Services industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on August 8, 2024, CyberArk reported EPS of $0.54 versus consensus estimate of $0.41 while it beat the consensus revenue estimate by 2.48%.
For the current fiscal year, CyberArk is expected to post earnings of $2.27 per share on $938.36 million in revenues. This represents a 102.68% change in EPS on a 24.8% change in revenues. For the next fiscal year, the company is expected to earn $3.33 per share on $1.14 billion in revenues. This represents a year-over-year change of 46.56% and 21.88%, respectively.
Valuation Metrics
CyberArk may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
CyberArk has a Value Score of F. The stock's Growth and Momentum Scores are A and B, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 126.1X current fiscal year EPS estimates, which is a premium to the peer industry average of 28.2X. On a trailing cash flow basis, the stock currently trades at 5X versus its peer group's average of 17.9X. Additionally, the stock has a PEG ratio of 3.78. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, CyberArk currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if CyberArk fits the bill. Thus, it seems as though CyberArk shares could have potential in the weeks and months to come.
How Does CYBR Stack Up to the Competition?
Shares of CYBR have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Unisys Corporation (UIS - Free Report) . UIS has a Zacks Rank of # 1 (Strong Buy) and a Value Score of A, a Growth Score of A, and a Momentum Score of B.
Earnings were strong last quarter. Unisys Corporation beat our consensus estimate by 143.24%, and for the current fiscal year, UIS is expected to post earnings of $0.24 per share on revenue of $2 billion.
Shares of Unisys Corporation have gained 16.8% over the past month, and currently trade at a forward P/E of 23.13X and a P/CF of 2.1X.
The Computers - IT Services industry is in the top 21% of all the industries we have in our universe, so it looks like there are some nice tailwinds for CYBR and UIS, even beyond their own solid fundamental situation.
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CyberArk Software Ltd. (CYBR) Hits Fresh High: Is There Still Room to Run?
Shares of CyberArk (CYBR - Free Report) have been strong performers lately, with the stock up 12.3% over the past month. The stock hit a new 52-week high of $293.31 in the previous session. CyberArk has gained 30.8% since the start of the year compared to the 20.6% move for the Zacks Computer and Technology sector and the 3.9% return for the Zacks Computers - IT Services industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on August 8, 2024, CyberArk reported EPS of $0.54 versus consensus estimate of $0.41 while it beat the consensus revenue estimate by 2.48%.
For the current fiscal year, CyberArk is expected to post earnings of $2.27 per share on $938.36 million in revenues. This represents a 102.68% change in EPS on a 24.8% change in revenues. For the next fiscal year, the company is expected to earn $3.33 per share on $1.14 billion in revenues. This represents a year-over-year change of 46.56% and 21.88%, respectively.
Valuation Metrics
CyberArk may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
CyberArk has a Value Score of F. The stock's Growth and Momentum Scores are A and B, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 126.1X current fiscal year EPS estimates, which is a premium to the peer industry average of 28.2X. On a trailing cash flow basis, the stock currently trades at 5X versus its peer group's average of 17.9X. Additionally, the stock has a PEG ratio of 3.78. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, CyberArk currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if CyberArk fits the bill. Thus, it seems as though CyberArk shares could have potential in the weeks and months to come.
How Does CYBR Stack Up to the Competition?
Shares of CYBR have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Unisys Corporation (UIS - Free Report) . UIS has a Zacks Rank of # 1 (Strong Buy) and a Value Score of A, a Growth Score of A, and a Momentum Score of B.
Earnings were strong last quarter. Unisys Corporation beat our consensus estimate by 143.24%, and for the current fiscal year, UIS is expected to post earnings of $0.24 per share on revenue of $2 billion.
Shares of Unisys Corporation have gained 16.8% over the past month, and currently trade at a forward P/E of 23.13X and a P/CF of 2.1X.
The Computers - IT Services industry is in the top 21% of all the industries we have in our universe, so it looks like there are some nice tailwinds for CYBR and UIS, even beyond their own solid fundamental situation.