CyberArk (CYBR) Upgraded to Buy: Here's Why

Core Viewpoint - CyberArk (CYBR) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system emphasizes the correlation between changes in earnings estimates and stock price movements, particularly due to institutional investors adjusting their valuations based on these estimates [4][6]. - An increase in earnings estimates typically leads to higher fair value calculations for stocks, prompting institutional investors to buy or sell, which in turn affects stock prices [4]. CyberArk's Earnings Outlook - CyberArk's earnings per share (EPS) for the fiscal year ending December 2025 is projected to be $3.65, reflecting a year-over-year increase of 20.5% [8]. - Over the past three months, the Zacks Consensus Estimate for CyberArk has risen by 6.1%, indicating a positive trend in earnings expectations [8]. Zacks Rank System - The Zacks Rank system categorizes stocks into five groups based on earnings estimates, with Zacks Rank 1 (Strong Buy) stocks historically generating an average annual return of +25% since 1988 [7]. - The upgrade of CyberArk to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting a strong potential for market-beating returns in the near term [10].