With a series of high profile breaches, it has been a very interesting time to be a cyber security company like Cyber Ark Software ( (CYBR – Snapshot Report). This company in particular looks to protect against a variety of breaches, provide risk management, and help to identify threats too.
Companies like CYBR have moved into the spotlight and have been market darlings for much of 2015 as a result of the many cyber attacks, showing both investors and company managers how important proper cyber security protection is these days. This has translated into solid stock price gains too, as from the start of the year to mid-June, shares of CYBR has soared more than 80% at their highest point, confirming the stock’s role as a hot security for investors.
However, a bit of the wind has gone out of CYBR’s sails as of late as shares are down roughly 15% in the past three months. And while part of this can certainly be blamed on the general market downturn, there has also been some general profit taking for the cyber security industry as of late. This could be great news for new investors though, as it could mean that now is the perfect time to get in on this story stock at a relative discount, and especially if you look to recent earnings estimate revisions.
CYBR Earnings Estimates
Recent earnings estimates have been moving sharply higher for CYBR in recent session, pushing the estimate higher from $0.35/share for the full year 30 days ago to $0.51/share today. And for the next year, we see a similar trend with the estimate moving from 53 cents per share to 66 cents per share in the same time frame.
It is also important to note that CYBR has a history of thoroughly crushing earnings estimates as it has a nearly 1,000% average beat over the past four quarters. This includes two beats of over 1,500% so clearly the company is capable of strong performances at earnings season.
For these reasons, we have assigned CYBR a Zacks Rank #1 (Strong Buy) and are looking for outperformance from the stock in the near term. We only give the top 5% of stocks a Zacks Rank #1, so CYBR is definitely in rare company right now.
And if that wasn’t enough, you should also note that CYBR has a Momentum Style Score of ‘A’ putting into good company on that front too. Indeed, the EPS estimate momentum is nearly unstoppable for CYBR with a 12.5% increase for this quarter in just the past month, compared to a decline for the industry, making Cyber Ark a stock you do not want to overlook in the space right now.
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