Knowing facts before you bet on it

Cyberark (Cybr) has recently been one of the most sought stocks on Zacks.com. Perhaps you would like to see some of the facts that could affect the performance of the stock at short notice.

The shares of this manufacturer of the software that recognize attacks on privileged accounts are returned last month compared to the -0.7% of Zacks S&P 500 Composite. The Zacks security industry, which includes cyberark, has increased 10.8% during this period. Now the main question is: where could the inventory be directed at short notice?

While media publications or rumors about a significant change in the business prospects of a company usually carry out its shares as a “trend” and lead to an immediate change in price, there are always some basic facts that ultimately dominate the purchase and hate decision finding.

Here at Zacks we prioritize the evaluation of the change in the projection of the future income of a company above all. This is because we believe that the current value of his future profit current determines the current value for its shares.

Our analysis essentially is based on how the analysts of sales pages that cover the shares revises their profit estimates in order to take into account the latest business trends. If the profit estimates for a company increase, the at the time to be accompanied by the current value for its shares. And if the at the time value of a share to be added is higher than the current market price, investors tend to buy the shares, which means that the price is upwards. For this reason, empirical studies indicate a strong correlation between trends in estimating the profits and the short -term share price movements.

Cyberark is expected to make a profit of $ 0.79 per share in the current quarter, which corresponds to a change of +5.3%compared to the previous year. In the last 30 days, the Zacks Consensus estimate has changed +3.7%.

For the current financial year, the consensus estimate of $ 3.65 refers to a change of +20.5% compared to the previous year. This estimate has changed +9.6%in the last 30 days.

For the next financial year, the consensus estimate of 4.65 USD shows a change of +27.3% compared to what Cyberark is expected a year ago. The estimate of +0.7%has changed last month.

With an impressive external, tested success balance sheet is our proprietary stock assessment tool and the Zacks-rank-rank-a more cozy indicator for the short-term price-performance of a share, since it effectively uses the power of the profit assessment revisions. The size of the recent change in the consensus estimate and three other factors in connection with the profit estimates led to a Zacks rank 2 (purchase) for cyberark.

The following table shows the development of the company's 12-month consensus EPS EPS estimate:

12-month consensus EPS estimate for cybr _12monthepscharturl

Although the profit growth of a company is probably the best indicator of its financial health, not much happens if it cannot increase its income. It is almost impossible for a company to increase its income without increasing its sales over long periods of time. It is therefore crucial to know the potential sales growth of a company.

In the case of Cyberark, the consensus turnover of $ 305.66 million shows for the current quarter to change +38%compared to the previous year. The estimates of 1.31 billion US dollars and 1.57 billion US dollars for the current and next financial years show changes of +31.3% or +19.1%.

In the last quarter, Cyberark reported sales of $ 314.38 million, which corresponds to a change of +40.9%compared to the previous year. EPS of $ 0.80 for the same period comparable to USD 0.81 a year ago.

Compared to the Zacks Consensus estimate of $ 301.05 million, the registered income is a surprise of +4.43%. The EPS surprise was +12.68%.

The company defeated consensus -epseps estimates in each of the following four quarters. The company exceeded consensus sales every time.

No investment decision can be efficient without taking into account the evaluation of a share. Whether the current price of a share rightly reflects the internal value of the underlying business and the growth prospects of the company is an essential determinant for future price -performance.

During the comparison of the current values of the evaluation advantages of a company, such as price-to-profit (P/E), Price-to-Sales (P/S) and Price-to-Cash-Flow (P/CF), with its own historical values, to determine whether its shares are rather evaluated, overvalued or undervalued, the relative position is comparable to prices for the relative position.

The Zacks Value Style Score (part of the Zacks Style Scores Systems), which pays attention to the grade of stocks from A to F both traditional and unconventional valuation metrics (AA is better than a C; and so on) is rather helpful to identify whether a share is overrated, legally valued or temporarily accommodated.

Cyberark is evaluated on this front to F, which points out that it is with his colleagues with a bonus. Click here to display the values of some evaluation metrics that have driven this grade.

The facts discussed here and a lot of other information about Zacks.com could contribute to determining whether it is worth paying attention to the Cyberark market or not. However, his Zack's rank #2 suggests that he can exceed the wider market at short notice.

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This article was originally published in Zack's Investment Research (Zacks.com).

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