3 Technology Stocks Set to Outperform This Quarter

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Costar Group Inc Notícia

Cyberark Software Ltd,Sentinelone Inc

Stocks Analysis by MarketBeat.com (Gabriel Osorio-Mazzilli) covering: CoStar Group Inc, Cyberark Software Ltd, SentinelOne Inc. Read MarketBeat.com (Gabriel Osorio-Mazzilli)'s latest article on Investing.com

Wall Street analysts agree with their EPS growth forecasts and price targets, as fundamental tailwinds are also at work to help these names.

Now that the market is placing most – if not all – premium valuations on the sector, investors can count on the ease of bullish price action and momentum to carry a select group of stocks forward and above the rest. Of course, the best candidates for this trend would be those stocks that also command premium valuations and expect to see above-average earnings per share growth for the next 12 months.1.

More than that, SentinelOne trades at a forward P/E ratio of 127.1x compared to the rest of the computer software’s average valuation of 27.0x today, and there’s a reason for the premium markets are paying today. Wall Street analysts think that the company can push for up to $0.19 EPS for the next 12 months, significantly higher than today’s $0.03.

Compared to the rest of the computer software industry’s average 6.3x price-to-book valuation, CyberArk trades at a much higher 14.9x premium to command the premium the company deserves ahead of the next quarter. On a forward P/E basis, an 83.7x valuation also goes way above the industry’s average 27.0x valuation.

These buyers weren’t the only ones willing to make their bullish opinions public for CoStar Group stock. Analysts at Needham & Co. recently boosted their price targets to $107 a share. Given that the stock trades at 74% of its 52-week high, there is more than enough room for the company to deliver on this implied 45% upside that Wall Street has called for.

 

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