Key Takeaways

• CyberArk, a global leader in identity security, is a current Zacks Rank #1 (Strong Buy) stock.

• CYBR shares have been strong year-to-date, gaining 32% and outperforming the S&P 500.

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Let’s take a closer look at the ‘Cybersecurity’ theme and analyze a stock that the screen returned, namely CyberArk Software (CYBR). The company is on the reporting docket for this week, with its results scheduled for Wednesday before the market’s open.

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Let’s take a closer look at how expectations presently stack up.

CyberArk Enjoys Momentum

 

CyberArk, a current Zacks Rank #1 (Strong Buy), 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.

Shares have been strong year-to-date, gaining 32% and outperforming relative to the S&P 500 on the back of strong quarterly results. Expectations have remained muted over recent months, though solid growth is expected, with CYBR forecasted to post 7% EPS growth on 22% higher sales.

Below is a chart illustrating the company’s sales on a quarterly basis.

Image Source: Zacks Investment Research

Concerning its latest print, CyberArk delivered record revenue and saw a profitability uptick, also outperforming its previous guidance across all metrics. The company has overall enjoyed a snowball of demand, with Subscription revenue of $158.4 million throughout Q2 nearly 50% higher than the year-ago figure.

CYBR raised its guidance following its latest print, and it’s reasonable to expect further positive commentary surrounding the long-term outlook if Subscription sales continue to melt higher. Shares currently trade at high valuation multiples, reflective of investors’ big growth expectations.

While we haven’t seen any revisions for the upcoming print, the outlook for its broader current fiscal year has continued to remain bullish in a big way, with the $2.30 Zacks Consensus EPS estimate up nearly 40% over the last year.