CyberArk Software CYBR is a global leader in identity security. The company provides the most comprehensive security offering for any identity across business applications, distributed workforces, hybrid cloud environments, and throughout the DevOps lifecycle.

Analysts have taken a bullish stance on the company’s earnings outlook, landing it into the highly-coveted Zacks Rank #1 (Strong Buy).

In addition to favorable earnings estimate revisions, the stock resides in the Zacks Computers – IT Services industry, currently ranked in the top 20% of all Zacks industries. Let’s take a closer look at how the company currently stacks up.

CyberArk Raises Guidance

 

The outlook for its current fiscal year has remained very bullish, with the $2.29 Zacks Consensus EPS estimate up more than 60% over the last year and suggesting a sizable 105% growth rate year-over-year. Sales growth is also forecasted to be strong, with the $940 million expected 25% higher than FY23.

Image Source: Zacks Investment Research

Shares saw a nice pop following its latest set of quarterly results, now trading at all-time highs. Stocks making new highs tend to make even higher highs, particularly when positive earnings estimate revisions are present.

Concerning the above-mentioned print, CyberArk delivered record revenue and saw a profitability uptick, also outperforming its previous guidance across all metrics. The company is enjoying a snowball of demand, with Subscription revenue of $158.4 million nearly 50% higher than the year-ago figure.

The company raised its full-year guidance across the board following the print, explaining the positive share reaction post-earnings. The company’s growth trajectory is expected to continue nicely, as shown below.

Image Source: Zacks Investment Research

The valuation picture here is quite rich, but that’s a reflection of investors’ big growth expectations. Shares currently trade at an 11.4X forward 12-month price-to-sales ratio, well above the 9.1X five-year median but still beneath five-year highs of 14.2X.

The stock sports a Style Score of ‘F’ for Value. While the valuation picture may steer some away, the company’s robust growth is undeniable.

Image Source: Zacks Investment Research

Bottom Line

Investors can implement a stellar strategy to find expected winners by taking advantage of the Zacks Rank – one of the most powerful market tools that provides a massive edge.

The top 5% of all stocks receive the highly coveted Zacks Rank #1 (Strong Buy). These stocks should outperform the market more than any other rank.

CyberArk Software CYBR would be an excellent stock for investors to consider, as displayed by its Zack Rank #1 (Strong Buy).