In order to keep pace with the rising sophistication of cyber threats, FireEye, Inc. (FEYE - Free Report) has added new features to the FireEye Email Security – Server Edition.
The new capabilities include Multi-Vector Virtual Execution (MVX) engine, which can use image-set passwords in emails to analyze the related password-protected files — a feature which most sandbox detection are unable to analyze.
FireEye’s MalwareGuard, which has been launched recently, is also among the new additions to the FireEye Email Security – Server Edition.
The key intent behind the new upgrades is the growing incidences of executive impersonation attacks, which do not contain any malware but significantly jeopardize business emails. This is becoming a concern because people tend to access and respond to such emails because these look official and legitimate.
Currently, spear-phishing emails is the first step of most of the cyber-attacks. In the FireEye Email Threat Report, the company found that 19% of all malware-less attacks were from executive impersonation emails. These triggered FireEye to device new techniques to detect and prevent email threats while maintaining its speed of about 14,000 detected malicious emails per customer per month, which bypass other email security tools.
Email Security Segment Looks Promising
FireEye is gaining customer accounts, which are driving revenue growth. Innovation in its Network and Email Security products is boosting adoption of cloud and virtual appliances, as reflected in the growing number of new and renewal customers.
In the last reported quarter, the company’s product and related subscription, and support revenues rose 4.2% to $127 million, driven by growth in virtual deployments and Cloud MVX. Moreover, the company also added 243 new logo customers in the third quarter, particularly from certain areas like Email Security.
FireEye has been making significant progress on the back of its powerful technology MVX engine, through which it delivers differentiated security offerings. These include a proprietary hypervisor that offers real-time analysis of sophisticated malware threats along with zero-day and advanced persistent threat attacks, to its customers.
Notably, in October last year, FireEye announced that its cloud-based email security solutions have received International Organization for Standardization (ISO) 27001 certification, SOC 2 Type 2 recertification, and Federal Risk and Authorization Management Program (FedRAMP) reauthorization.
Abundant Industry Prospects Bode Well
Cybersecurity has become a mission-critical, high-profile requirement, given the growing exposure of enterprises to sophisticated cyber threats. While growing cyber-attacks don’t bode well with most organizations, firms operating in the cybersecurity industry are positioned to benefit immensely. Enterprises are realizing the need for stricter security measures, which will push companies to further increase spending on cybersecurity.
Recently, the United States issued an allocation of $15 billion for cybersecurity-related activities for 2019. Moreover, per MarketsandMarkets, the global cybersecurity market is expected to reach $248.3 billion by 2023, reflecting a CAGR of 10.2% through 2018 to 2023. These forecasts encourage us about FireEye’s growth prospects in the space.
Zacks Rank & Stocks to Consider
FireEye currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Computer and Technology sector are Synopsys, Inc. (SNPS - Free Report) , Infineon Technologies AG (IFNNY - Free Report) and Marvell Technology Group Ltd. (MRVL - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings growth rate for Synopsys, Infineon and Marvell is projected to be 10%, 8.62% and 9.38%, respectively.
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