The Best Company in the Cyber Security Market

The booming cyber security space has opened up a lot of investment options. Despite the fact that many cyber security stocks have under-performed and are losing money, I still believe in the growth prospects of the companies in the sector. However, it is important for investors to pick the right stock so as to benefit from the rise of cyber security. In my opinion, FireEye (FEYE) is one of the best cyber security stocks that investors can consider buying right now.

Performing well despite rising competition

Cyber threats and breaches are increasing rapidly nowadays, and even the big corporate companies are not safe from the threat.
Hackers are finding their way into the companies despite having high profile security systems.

FireEye plans to build one of the most consistent cyber security platforms in the sector. FireEye is swiftly turning into a premier company for managing huge corporate hacks and various other high-profile cyber attacks. Giant corporations such as Target and JPMorgan Chase are highly dependable on FireEye to prevent major security fissures, and will probably endure to do so keeping in mind FireEye’s enhancing security platform.

FireEye is growing at a striking rate as it recorded around 30 percent year-over-year top-line growth in Q4FY15.  Furthermore, the company gross margin of 73 percent on an annual basis also displays its enhancing profitability in an escalating crowded sector. Regardless of rising competition, FireEye will carry on to maintain its leading position in the industry.

At present, IoT trend adoption is gaining speed, and computer technologies are being assimilated into everyday life. It clearly indicates that cyber security will probably become very important big corporate companies to function properly. As a matter of fact, foremost industries are beginning to use refined computer technologies.

FireEye is exclusively appropriate to protect from increasingly universal cyber security threats due to its ability in both, human intelligence and machine based services and solutions. FireEye’s human intelligence threat defense, which basically comes from its Mandiant and newly acquired iSIGHT divisions, makes the company more efficient and unique from most of its rivals.

Nowadays, results of cyber security attacks are no longer strictly restricted only to the digital world. For this reason, human intelligence is becoming an essential part of cyber security industry. As a result, FireEye’s top-line and billings have both been rising at a considerable rate, demonstrating its robust demand growth.

Despite intensifying competition, FireEye is still accomplishing strong client growth. FireEye is also appealing major business, with a record of 47 transactions over $1 million throughout the quarter.

Conclusion

Given the growth and high gross margin, I think FireEye is one of the best pure play cyber security stocks out there. Although FireEye is losing money, its strong growth, unique business model, and high-profile client list makes the stock a worthy bet.
Published on Apr 8, 2016
By Akshansh Gandhi

Copyrighted 2016. Content published with author's permission.

Posted in ...