121.38 0.00 (0.00%)
After hours: 5:06PM EDT
|Bid||115.15 x 800|
|Ask||130.00 x 800|
|Day's Range||116.99 - 122.16|
|52 Week Range||75.92 - 130.27|
|Beta (3Y Monthly)||1.48|
|PE Ratio (TTM)||N/A|
|Earnings Date||Apr 25, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||127.56|
The Department of Homeland Security is probing the risks associated with 5G networks, particularly the risks amid the rise of Chinese telecom giant Huawei. But that's not the only fear when we talk cyber security. Yahoo Finance's Zack Guzman & Sibile Marcellus join ‘Bad With Money’ Author Gaby Dunn and Proofpoint CEO Gary Steele to discuss.
Proofpoint (PFPT) possesses the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
Proofpoint (PFPT) has an impressive earnings surprise history and currently possesses the right combination of the two key ingredients for a likely beat in its next quarterly report.
If you look closely, there are signs of progress at FireEye (NASDAQ:FEYE). The cybersecurity company has been a disappointment, admittedly: FireEye stock once traded above $90, and now changes hands at $16. But FireEye generally has performed well in the past couple of years, and there's reason to see further improvements ahead.Source: David via Flickr (Modified)Growth in billings (which back out deferred revenue changes) shows demand is increasing, particularly as the company shifts from appliances to software. Operating margins are exceedingly thin, just 3% on an adjusted basis in 2018, which means earnings can jump sharply with even modest expansion.An ~80x multiple to the midpoint of 2019 EPS guidance makes it seem like FEYE stock is pricing in massive growth, but that's not quite the case. Margins can easily double or triple, which alone can move earnings substantially higher in coming years.InvestorPlace - Stock Market News, Stock Advice & Trading TipsBut even with that case, and even with FireEye stock basically flat YTD, it's difficult to get too excited. Margin expansion looks priced in. So does decent billings growth. That's particularly true when considering stock-based compensation and the fact that investors shouldn't be willing to trust FireEye just yet. * 10 S&P 500 Stocks to Weather the Earnings Storm The Case for FireEye StockOn its face, FireEye stock looks ridiculously expensive. Multiples of 4x+ EV/revenue and ~80x earnings hardly seem fitting for a company that at the midpoint of guidance expects billings to grow 7%+ in 2019 - and revenue just 6.5%.Indeed, that guidance was disappointing, and it was the key reason why FEYE fell 12% after Q4 earnings back in February. But even with modest top-line growth, there's still a case that FireEye stock can grow into its valuation. Operating margins last year, as noted, were just 3%.That was a 300 bps improvement over the ~flat figure posted the year before. Full-year guidance projects margins this year of 5-6% - continuing the positive trend.Combine a move to 9-10% margins along with revenue growth and FireEye earnings double in relatively short order. Indeed, FEYE stock jumped last month when JPMorgan Chase (NYSE:JPM) analysts upgraded the stock for similar reasons. The firm saw revenue growth accelerating thanks to product improvements - which should leverage operating expenses and continue margin expansion.JPMorgan also pointed out that the shift to software impacts reported revenue and earnings, since upfront sales are recognized over the course of the contract. The firm said billings and cash flow were better metrics. Indeed, FireEye's free cash flow guidance for 2019 suggests generation of $50-$60 million. That's a more reasonable 58x P/FCF multiple at the midpoint.Double that thanks to margin expansion, and continue high-single-digit billings growth into the future, and FEYE can grow into, and beyond the current valuation. The firm gave FireEye stock a price target of $20, which is line with the average Street target at the moment, and suggests over 20% upside. The Case Against FireEye StockThere are reasons for caution, however. For one, it's not guaranteed that margins are going to expand continuously or at least at the same rate as seen in 2018 and 2019. Management did say on the Q4 conference call that it expected headcount to stay relatively flat this year.That's not necessarily going to be the case going forward. FireEye isn't guaranteed to get two or three points of operating leverage each year. If it doesn't, earnings growth might not be good enough. To drive upside, FireEye has to at least get EPS moving toward the $1 level. It's guided to just $0.17-$0.21 this year. Something like 200-300% growth is easily priced in already, and if margin expansion slows, that type of growth is going to take several years.The second issue is that cybersecurity is a tough space with no shortage of options. Indeed I called out 5 cybersecurity stocks for investors of varying styles earlier this month. Palo Alto Networks (NYSE:PANW) is the clear industry leader. ProofPoint (NASDAQ:PFPT) is the hot young growth stock. Carbonite (NASDAQ:CARB) offers a turnaround story of its own.There are plenty of reasons to like the sector but the plethora of options suggests investors can find an easier, better-priced bull case than the one offered by FEYE.Finally - as is so often the case in tech - there's the issue of stock-based compensation. FireEye is targeting operating margins of 5-6% next year, and $50-$60 million in free cash flow. Stock-based compensation last year was $153 million, over 18% of revenue.Even if that figure falls in 2019, it significantly colors non-GAAP results (from which the compensation is excluded). Is FireEye really generating mid-single-digit margins? Is it really generating $50M+ in free cash flow? Or is just accomplishing those feats by diluting shareholders? Good, but Not GreatThe underlying story when it comes to FireEye makes some sense, admittedly. Margins should get better. Billings growth should continue - and may even accelerate.But even with FEYE lagging the market so far this year, the valuation really isn't compelling. There's still a lot of work left to do in terms of building margins and a long time for investors to wait. Competition is going to be intense, and it's tough, as yet, to call out FireEye as a clear leader. Given all that, in a hot sector, it seems like there are better choices out there.As of this writing, Vince Martin has no positions in any securities mentioned. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Stocks to Buy for Spring Season Growth * This Is How You Beat Back a Bear Market * 7 Dental Stocks to Buy That Will Make You Smile Compare Brokers The post The Case for FireEye Stock Isn't Strong Enough to Make It a Buy appeared first on InvestorPlace.
Are These Tech Stocks Overvalued after Nearing 52-Week Highs?(Continued from Prior Part)Stock returnsCybersecurity (HACK) stock Fortinet (FTNT) has generated returns of 68% in the last 12 months. The stock easily outperformed broader markets last
Mimecast is the IBD Stock of the Day as the cybersecurity firm approaches an entry point amid rising analyst earnings estimates. Mimecast is trading about 4% below a buy point of 51.77.
Proofpoint, Inc. (NASDAQ:PFPT), which is in the software business, and is based in United States, received a lot of attention from a substantial price increase on the NASDAQGM over the last f...
Proofpoint Inc NASDAQ NMS:PFPTView full report here! Summary * ETFs holding this stock are seeing positive inflows * Bearish sentiment is low Bearish sentimentShort interest | PositiveShort interest is extremely low for PFPT with fewer than 1% of shares on loan. This could indicate that investors who seek to profit from falling equity prices are not currently targeting PFPT. Money flowETF/Index ownership | PositiveETF activity is positive. Over the last month, ETFs holding PFPT are favorable, with net inflows of $2.43 billion. Additionally, the rate of inflows is increasing. Economic sentimentPMI by IHS Markit | NeutralAccording to the latest IHS Markit Purchasing Managers' Index (PMI) data, output in the Technology sector is rising. The rate of growth is weak relative to the trend shown over the past year, however. Credit worthinessCredit default swapCDS data is not available for this security.Please send all inquiries related to the report to email@example.com.Charts and report PDFs will only be available for 30 days after publishing.This document has been produced for information purposes only and is not to be relied upon or as construed as investment advice. To the fullest extent permitted by law, IHS Markit disclaims any responsibility or liability, whether in contract, tort (including, without limitation, negligence), equity or otherwise, for any loss or damage arising from any reliance on or the use of this material in any way. Please view the full legal disclaimer and methodology information on pages 2-3 of the full report.
Cybersecurity stocks have been among the best stocks in the market in recent years. The ETFMG Prime Cyber Security ETF (NYSEARCA:HACK) has gained 69% in the past three years -- easily outperforming the broader market.There are plenty of reasons to believe that outperformance will continue. After all, high-profile data breaches continue to occur. This week, for instance, TechCrunch reported that privately held Arizona Beverages was the victim of a crippling ransomware attack. The incident is yet another lesson that companies cannot cut corners when it comes to security protection. * 10 Medical Marijuana Stocks to Cure Your Portfolio To be sure, investors are aware of the trend. Cybersecurity stocks aren't cheap. But for investors willing to pay up, the sector is large enough to offer a variety of options. These five cybersecurity stocks offer different bull cases for different types of investors.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Palo Alto Networks (PANW)Source: Shutterstock Palo Alto Networks (NYSE:PANW) might be the simplest, "set it and forget it", play among cybersecurity stocks. Palo Alto has successfully transitioned away from a reliance on hardware and jumpstarted growth in the process. Revenue in the fourth quarter, for instance, rose over 30% year-over-year, crushing analyst estimates.At the moment, Palo Alto is the largest cybersecurity play … and the most diversified. If the market as a whole continues to grow, Palo Alto Networks should benefit.That said, there are concerns, as I wrote after earnings. PANW stock isn't cheap. And we've seen the cloud story break down elsewhere as spending has slowed. PANW is the biggest stock in the space, and it has the simplest bull case. It's going to rise if its market keeps growing. But at this point, it may be one of the better cybersecurity stocks, but not necessarily one of the best stocks in the space. Symantec (SYMC)Source: Shutterstock As noted earlier, cybersecurity stocks aren't cheap, and value plays are hard to find. Symantec (NASDAQ:SYMC) might be the cheapest stock in the space, but there are reasons.Growth has stalled out. Fiscal 2019 guidance, which disappointed and then was pulled further down, suggests a year-over-year decline in revenue and earnings. An accounting investigation has only added to the pressure on SYMC stock. A continuing reliance on PC-related revenue makes the stock less exposed to growth on the enterprise side of the industry.That said, SYMC has a path to upside. Private equity firm Thoma Bravo has reportedly considered acquiring the company. Symantec itself is making acquisitions to build out its enterprise business, acquiring Israeli cloud security provider Luminate Security in February. * 10 Stocks That Every 30-Year-Old Should Buy and Hold Forever And the stock is cheap, at 13x next year's earnings-per-share estimates. If Symantec can continue to build out its enterprise business, that valuation might be far too low. Secureworks (SCWX)Source: Shutterstock Secureworks (NASDAQ:SCWX) is one of the best stocks in the sector for traders. Secureworks focuses on software-driven solutions, predominantly through a SaaS (software-as-a-service) model.And SCWX stock might be in play. Dell Technologies (NASDAQ:DELL) owns 86% of the company and is looking to pay down debt. Reuters reported in February that Dell was considering a sale, which might make some sense. Secureworks isn't as material to the Dell business as VMWare (NYSE:VMW) and it might perform better as an independent company or as part of a larger security provider.Meanwhile, SCWX stock has pulled back of late and it looks cheap enough to garner some interest. Profits are still miniscule, but revenue is growing -- and an acquirer might be willing to pay a premium to the current sub-3x price-to-sales multiple. SCWX's opportunity is solid enough on its own long-term, but there's a decent chance a buyout offer could spike SCWX stock in 2019. ProofPoint (PFPT)Source: Shutterstock For investors who like chasing growth, the cybersecurity sector has some of the best stocks. One of them is Proofpoint (NASDAQ:PFPT). Proofpoint continues to post huge increases in revenue and profits, with sales up 35% in Q4. As a result, PFPT has rallied strongly, gaining 47% already in 2019. * 7 Energy ETFs That Could Be Running Out of Fuel At current levels, PFPT is challenging all-time highs. And it's not cheap, at 9x revenue and 55x forward EPS estimates. But there's room for upside from a technical perspective if the stock can bust through resistance. And there's room for upside from a fundamental perspective too … if its current growth continues. Investors willing to pay up for growth should take a long look at PFPT stock. Carbonite (CARB)Source: Shutterstock For investors who appreciate business transformations, meanwhile, Carbonite (NASDAQ:CARB) might be the play. Carbonite started as a largely consumer-focused company. But it has expanded into small and medium businesses with help from an aggressive M&A strategy.That strategy continued this year, with the recently closed $619 million acquisition of Webroot. Yet even with those deals driving growth, CARB looks reasonably cheap. Pro forma for the Webroot purchase, the stock trades at 11-12x 2019 EBITDA guidance. Looking to 2020, analysts see well over $2 per share in EPS.With a sharp pullback of late, that suggests just an 11x forward EPS multiple. That might be far too cheap -- particularly if the strategy here is on point. While larger rivals chase larger deals, Carbonite might be able to create value by chasing smaller fish.As of this writing, Vince Martin was long shares of Dell Technologies. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 5 Low-Priced Tech Stocks With Great Potential * 9 Stocks That Would Be Hurt By a Mexico/U.S. Border Closure * The Era of Car Ownership Is Over. And These 4 Charts Prove It Compare Brokers The post 5 Cybersecurity Stocks to Watch As the Trend Heats Up appeared first on InvestorPlace.
Proofpoint, Inc., (PFPT), a leading cybersecurity and compliance company, today announced it will issue a press release reporting financial results for the first quarter ended March 31, 2019, after the close of the market on April 25, 2019. Proofpoint will host a conference call and live webcast to discuss those financial results for investors and analysts at 1:30 p.m. Pacific Time (4:30 p.m. Eastern Time) on April 25, 2019. To access the conference call, dial (888) 394-8218 for the U.S. or Canada and (323) 794-2588 for international callers with conference ID #3271303.
Sunnyvale has become a hotspot for tech titans and real estate developers, but no one anticipated how fast one business district in the city would reach a boiling point.
Cybersecurity stock Proofpoint is the IBD Stock Of The Day. Proofpoint stock is in a buy zone with a rising relative strength line following better-than-expected results in the fourth quarter.
SUNNYVALE, Calif., March 12, 2019 -- Proofpoint, Inc., (NASDAQ: PFPT), a leading cybersecurity and compliance company, today announced it has won 14 gold and silver accolades.
The worst result, after buying shares in a company (assuming no leverage), would be if you lose all the money you put in. But on the bright side, if youRead More...
NEW YORK, Feb. 27, 2019 -- In new independent research reports released early this morning, Fundamental Markets released its latest key findings for all current investors,.
SUNNYVALE, Calif., Feb. 26, 2019 -- Proofpoint, Inc., (NASDAQ: PFPT), a leading cybersecurity and compliance company, today announced an enhanced version of Proofpoint.
Proofpoint Inc is a provider of web-based protection applications in the United States. Proofpoint Inc had annual average EBITDA growth of 3.60% over the past five years. Warning! GuruFocus has detected 2 Warning Sign with PFPT.
DailyOTC.com News Commentary -- A series of cyber-attacks like WannaCry or WannaCrypt ransomware attacks and Petya rocked the globe last year, while it’s difficult to predict what will happen this year, we can guess that cyber criminals will find new ways to carry out their attacks. As such, demand for cybersecurity solutions will continue to grow, and cybersecurity stocks will continue to outperform. The cybersecurity market is growing rapidly because of the rising need for cloud-based cybersecurity solutions among Small and Medium-sized Enterprises (SMEs).
When a stock shoots sharply higher, be it in just a day or in a week, investors should ask why. More importantly, if the stock's rise is justified and there is upside potential, value investors do not need to wait for the stock to dip. Last week, the stock for enterprise cybersecurity company Proofpoint, Inc. (NASDAQ:PFPT) rose 17% on the week after it reported strong fourth-quarter earnings. Proofpoint stock is up more than 30% this month. PFPT stock traded as low as $80 in early January and as of this writing is trading at $118. So clearly, an explanation is needed. * 10 F-Rated Stocks That Could Break Your Portfolio Proofpoint stock began its slow decent in mid-2018. By October, the company included news in its Q3 report that Proofpoint's president and COO, Klaus Oestermann would be leaving after just being appointed in July 2018. That sent PFPT stock down more than 10% on October 25. Markets completely ignored the beat in subscription revenue Q4 guidance that was above consensus. InvestorPlace - Stock Market News, Stock Advice & Trading Tips ### Strong Fourth Quarter For Q4, Proofpoint reported non-GAAP earnings of 51 cent that easily beat estimates of 35 cents. (GAAP earnings, however, came in at a loss of 39 cents per share.) Revenue grew 198.5 million, up 35% from the previous year. CEO Gary Steele re-affirmed the company's confidence in sustaining business momentum. He said: "We are well-positioned, with tremendous market momentum as we enter 2019. I believe that our people-centric approach to cybersecurity will be a game-changer, and I couldn't be more excited about the opportunity in front of us." In addition to strong revenue, Proofpoint reported a billings increase of 43% year-over-year to $269.9 million. Gross profit rose sharply to $145.5 million, up from $106.4 million last year. On a GAAP basis, the firm lost $21 million. The GAAP numbers include shares associated with the company's convertible notes, plus a $1 million cash expense. Non-GAAP, it earned 51 cents a share, or $29.1 million. ### Why Investors Are Buying PFPT Stock Proofpoint is in the cyber-threat detection and protection market. And it is not the only firm in its sector that did well in the quarter. After months of underperformance, Symantec Corporation (NASDAQ:SYMC) rallied more than 10% when it, too, reported an double earnings beat. And Proofpoint is a more stable, steady performer than SYMC. Proofpoint has a suite of advanced threat solutions, which it calls its TAP offering or Targeted Attack Protection. The company won a number of big clients during the quarter. This includes a fortune 100 airline and a Fortune 500 financial services firm. If PFPT stock is just starting to gain momentum, the stock clearly has plenty of upside ahead. Based on market capitalization, Proofpoint is half the size of Symantec -- that's a ton of room to run in. ### Proofpoint Growth Catalysts Proofpoint will very likely beat expectations in the next quarter as well. As enterprises migrate to Microsoft's (NASDAQ:MSFT) Office 365, Proofpoint has a full suite of security and compliance solutions that will protect new generations of cloud systems and infrastructure. And customers are embracing the TAP solution because the firm offers protection for legacy technology and the newer, cloud-based platforms. Proofpoint's renewal rate validates high customer satisfaction levels, and right now, renewal rates are clocking in above 90%. This in turn will lead to higher growth in 2019 and beyond. Add-on sales also boosted Q4 numbers -- representing around half of all new revenue booked last year. Looking ahead, emerging products will also drive more business. ### The Bottom Line on Proofpoint Stock With its expanded range of products, Proofpoint's total addressable market expanded to over $5 billion. And so long as people need protection from email, cloud and social channels, the market size will keep growing. So in the long term, I think things look good for PFPT. * 7 Stocks That Won Super Bowl Sunday However, right now, PFPT stock trades at close to the average analyst price target of $121. And with the stock trades at a price/sales ration three times higher than larger competitor Symantec, investors might want to wait for a pullback, perhaps near the $100 range, before buying. Disclosure: As of this writing, the author did not hold a position in any of the aforementioned securities. ### More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 F-Rated Stocks That Could Break Your Portfolio * 5 Fintech Stocks to Buy As This Mega Trend Gains Steam * 10 Cold Weather Stocks to Heat Up Your Returns Compare Brokers The post Why Proofpoint Stock Rose 40% in the Last Month appeared first on InvestorPlace.