CyberArk (CYBR) Stock Drops Despite Market Gains: Important Facts to Note

Zacks
04-15

In the latest market close, CyberArk (CYBR) reached $343.35, with a -1.74% movement compared to the previous day. This change lagged the S&P 500's daily gain of 0.79%. Meanwhile, the Dow gained 0.78%, and the Nasdaq, a tech-heavy index, added 0.64%.

Prior to today's trading, shares of the maker of software that detects attacks on privileged accounts had gained 2.94% over the past month. This has outpaced the Computer and Technology sector's loss of 4.81% and the S&P 500's loss of 3.56% in that time.

Market participants will be closely following the financial results of CyberArk in its upcoming release. The company plans to announce its earnings on May 13, 2025. On that day, CyberArk is projected to report earnings of $0.80 per share, which would represent year-over-year growth of 6.67%. Alongside, our most recent consensus estimate is anticipating revenue of $305.65 million, indicating a 37.96% upward movement from the same quarter last year.

For the full year, the Zacks Consensus Estimates project earnings of $3.64 per share and a revenue of $1.32 billion, demonstrating changes of +20.13% and +31.43%, respectively, from the preceding year.

Investors might also notice recent changes to analyst estimates for CyberArk. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 5.14% lower. CyberArk currently has a Zacks Rank of #3 (Hold).

Looking at valuation, CyberArk is presently trading at a Forward P/E ratio of 95.89. For comparison, its industry has an average Forward P/E of 58.38, which means CyberArk is trading at a premium to the group.

One should further note that CYBR currently holds a PEG ratio of 4.79. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Security was holding an average PEG ratio of 3.06 at yesterday's closing price.

The Security industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 72, finds itself in the top 30% echelons of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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This article originally published on Zacks Investment Research (zacks.com).

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