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Here's Why Investors Should Hold on to FireEye (FEYE) Stock
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FireEye, Inc. has performed well in the last year. The stock has returned 67.8% during the said time frame, significantly outperforming the industry’s rally of 30.9%.
With expected long-term earnings per share growth rate of 16% and a market cap of $3.5 billion, it seems to be a stock that investors need to hold on to if they are looking to reap long-term gains.
Let’s take a look at the factors aiding the company’s performance.
FireEye's continuous effort to launch advanced products to provide protection against rising cyber threats is a major tailwind.
The company’s products have witnessed robust adoption, thereby boosting its customer base and its top line. The company reported fourth-quarter revenues of $202.3 million, which increased 9.5% year over year and outpaced the Zacks Consensus Estimate of $194 million.
Apart from innovations, inorganic growth also aided the enrichment of the solutions suite. In January, the company announced the acquisition of X15 Software with an aim to incorporate the latter’s Big Data platform to its security solutions against cyber attacks. With the incremental usage of Big Data and machine learning in cyber security, this acquisition is expected to be beneficial for the company going ahead.
Notably, the company is gaining from a business model shift from product based to subscription based, improved operational efficiency and sales productivity, as well as healthy demand for intelligence-led security products.
However, a shorter contract length is likely to adversely impact the company’s near-term top-line performance. But margins are likely to improve. Stiff competition from other well-established players such as Check Point Software (CHKP - Free Report) and Fortinet (FTNT - Free Report) in the cyber security space is a major headwind for the company.
Long-term expected EPS growth rate for Paycom is projected to be 25.8%
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
Image: Bigstock
Here's Why Investors Should Hold on to FireEye (FEYE) Stock
FireEye, Inc. has performed well in the last year. The stock has returned 67.8% during the said time frame, significantly outperforming the industry’s rally of 30.9%.
With expected long-term earnings per share growth rate of 16% and a market cap of $3.5 billion, it seems to be a stock that investors need to hold on to if they are looking to reap long-term gains.
Let’s take a look at the factors aiding the company’s performance.
FireEye's continuous effort to launch advanced products to provide protection against rising cyber threats is a major tailwind.
The company’s products have witnessed robust adoption, thereby boosting its customer base and its top line. The company reported fourth-quarter revenues of $202.3 million, which increased 9.5% year over year and outpaced the Zacks Consensus Estimate of $194 million.
FireEye, Inc. Revenue (TTM)
FireEye, Inc. Revenue (TTM) | FireEye, Inc. Quote
Apart from innovations, inorganic growth also aided the enrichment of the solutions suite. In January, the company announced the acquisition of X15 Software with an aim to incorporate the latter’s Big Data platform to its security solutions against cyber attacks. With the incremental usage of Big Data and machine learning in cyber security, this acquisition is expected to be beneficial for the company going ahead.
Notably, the company is gaining from a business model shift from product based to subscription based, improved operational efficiency and sales productivity, as well as healthy demand for intelligence-led security products.
However, a shorter contract length is likely to adversely impact the company’s near-term top-line performance. But margins are likely to improve. Stiff competition from other well-established players such as Check Point Software (CHKP - Free Report) and Fortinet (FTNT - Free Report) in the cyber security space is a major headwind for the company.
Zacks Rank and Stocks to Consider
FireEye carries a Zacks Rank #3 (Hold).
A better-ranked stock in the same industry space is Paycom Software, Inc. (PAYC - Free Report) , sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term expected EPS growth rate for Paycom is projected to be 25.8%
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>