Why CyberArk (CYBR) Dipped More Than Broader Market Today

Company Performance - CyberArk's stock closed at $383.05, down 1.4% from the previous trading session, underperforming the S&P 500's loss of 0.22% [1] - Over the past month, CyberArk's shares have increased by 3.92%, outperforming the Computer and Technology sector's gain of 2.98% and the S&P 500's gain of 0.45% [1] Upcoming Earnings - The upcoming earnings per share (EPS) for CyberArk is projected at $0.79, indicating a 46.30% increase compared to the same quarter last year [2] - Revenue for the upcoming quarter is estimated at $315.43 million, reflecting a 40.37% rise from the equivalent quarter last year [2] Fiscal Year Estimates - For the entire fiscal year, earnings are projected at $3.81 per share and revenue at $1.32 billion, representing increases of 25.74% and 31.88% respectively from the prior year [3] - Recent changes in analyst estimates for CyberArk are important as they often reflect shifting business dynamics, with positive revisions indicating a favorable business outlook [3][4] Zacks Rank and Performance - The Zacks Rank system, which incorporates estimate changes, currently ranks CyberArk as 2 (Buy), with 1 stocks historically returning an average of +25% annually since 1988 [5] - Over the last 30 days, the Zacks Consensus EPS estimate for CyberArk has increased by 32.12% [5] Valuation Metrics - CyberArk is currently trading at a Forward P/E ratio of 102.04, which is higher than the industry average of 74.67, suggesting a premium valuation [6] - The company has a PEG ratio of 4.2, compared to the Security industry's average PEG ratio of 3.03, indicating a higher valuation relative to expected earnings growth [7] Industry Context - The Security industry, part of the Computer and Technology sector, holds a Zacks Industry Rank of 27, placing it in the top 11% of over 250 industries [8] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [8]