Strength Seen in CyberArk (CYBR): Can Its 6.6% Jump Turn into More Strength?
CyberArk CYBR shares rallied 6.6% in the last trading session to close at $127.85. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 6% loss over the past four weeks.
CyberArk’s stock appreciated on continued optimism surrounding the demand for its products and solutions. The company is benefiting from rising demand for cyber security solutions owing to the long list of data breaches.
Increasing demand for privileged access security on the back of digital transformation and cloud migration strategies remain a key growth driver. Moreover, strong presence across verticals such as banking, healthcare, government and utilities, are safeguarding CyberArk from negative effects of the macroeconomic and geopolitical headwinds.
This maker of software that detects attacks on privileged accounts is expected to post quarterly earnings of $0.12 per share in its upcoming report, which represents a year-over-year change of -57.1%. Revenues are expected to be $174.17 million, up 15.1% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For CyberArk, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on CYBR going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
CyberArk is a member of the Zacks Computers - IT Services industry. One other stock in the same industry, Dell Technologies DELL, finished the last trading session 0.4% lower at $40.03. DELL has returned 3% over the past month.
Dell Technologies' consensus EPS estimate for the upcoming report has remained unchanged over the past month at $1.67. Compared to the company's year-ago EPS, this represents a change of -2.9%. Dell Technologies currently boasts a Zacks Rank of #3 (Hold).
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