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Why Take-Two Interactive, CyberArk Software, and Tyson Foods Jumped Today

By Steve Symington – May 14, 2019 at 3:41PM

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See why these three stocks outperformed on a positive day for the markets.

Following Monday's staggering declines, the stock market partially recovered on Tuesday as investors grappled with the ongoing trade war between China and the United States. The Dow Jones Industrial Average and the S&P 500 both finished up roughly 0.8%.

But several individual stocks outpaced the broader market's gains, including Take-Two Interactive (TTWO -3.82%), CyberArk Software (CYBR -1.20%), and Tyson Foods (TSN -1.51%).

Take-Two redeems itself

Shares of Take-Two jumped 3.5% after the video game company announced strong fiscal fourth-quarter 2019 results. Revenue increased 20% to $539 million -- technically just below the 23% growth most analysts were expecting -- driven by Grand Theft Auto OnlineGrand Theft Auto V, NBA 2K19, and ongoing demand for its massively popular Red Dead Redemption 2 title.

On the bottom line after adjusting for one-time items, (non-GAAP) earnings arrived at $0.78 per share, up 11.4% year over year and beating consensus estimates by $0.03.

Chalk board with five rising arrows

Image source: Getty Images.

Chairman and CEO Stauss Zelnick noted Two-Two expects fiscal 2020 "to be another strong year," though operating results will likely decline from fiscal 2019 given the "extraordinary success of Red Dead Redemption 2."

"We are exceedingly well positioned to generate significant growth and margin expansion over the long term," he added.

CyberArk secures an impressive quarter

CyberArk stock gained 2.3% in the wake of the IT security specialist's announcement of better-than-expected first-quarter results. Revenue soared 34% to $95.9 million, including 33% growth in license revenue (to $51.3 million) and a 34% increase in maintenance and professional services (to $44.7 million). Adjusted net income skyrocketed 75% year over year to $0.56 per share.

Analysts, on average, were only looking for earnings of $0.41 per share on revenue of $92.4 million.

Chairman and CEO Udi Mokady noted CyberArk's results exceeded "all guided metrics," including a 39% increase in cash flow from operations to a company record $45.9 million.

"Our results demonstrate that Privileged Access Security is the foundation of comprehensive cybersecurity programs," Mokady elaborated. "As the leader in the market, organizations of all sizes and industries are turning to CyberArk as a trusted advisor to secure digital transformation and cloud migration strategies."

A vote of confidence for Tyson Foods

Finally, shares of Tyson Foods climbed 2.5% after Credit Suisse analyst Robert Moskow upgraded the protein-centric food company to outperform. He also raised his per-share price target from $74 to $96, marking a more-than-20% premium from yesterday's close. 

Moskow believes Tyson Foods is poised to benefit from an outbreak of African swine fever in China that could "have a profound impact on global meat supplies for at least two years."

Incidentally, Tyson Foods CEO Noel White echoed that sentiment in a blog post this morning, noting China has already lost around 35% of its pig herd -- a devastating total that's larger than the entire U.S. pig population and represents over 5% of the world's total protein production.

"A worldwide decrease in pork supply would offer significant upside to our pork business," White wrote, "while also lifting the chicken and beef businesses as substitutes."

Steve Symington has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Take-Two Interactive. The Motley Fool recommends CyberArk Software. The Motley Fool has a disclosure policy.

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Stocks Mentioned

Tyson Foods, Inc. Stock Quote
Tyson Foods, Inc.
$69.94 (-1.51%) $-1.07
Take-Two Interactive Software, Inc. Stock Quote
Take-Two Interactive Software, Inc.
$110.36 (-3.82%) $-4.38
CyberArk Software Ltd. Stock Quote
CyberArk Software Ltd.
$146.12 (-1.20%) $-1.77

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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