With businesses pressing ahead with digital transformation to stay ahead of their competition, and several companies preferring to continue working remotely via cloud-based platforms even in the wake of the COVID-19 pandemic, cybersecurity threats are rising. The SolarWinds hack last year, and the Colonial Pipeline cyberattack earlier this year highlighted the importance of advanced cybersecurity solutions…
President Biden signed an executive order last month to improve the nation’s cybersecurity. This boosted investors’ interest in cybersecurity stocks, as evidenced by the First Trust NASDAQ Cybersecurity ETF’s (CIBR) 6.7% gains over the past month versus the SPDR S&P 500 Trust ETF’s (SPY) 1.4% returns. Furthermore, according to a Facts and Factors report, the global Cyber Security Market is expected to grow at a 14.9% CAGR over the next five years.
So, we think it could be wise to scoop up the shares of the fundamentally strong cybersecurity players McAfee Corp. (MCFE – Get Rating), Trend Micro Incorporated (TMICY – Get Rating), and Tenable Holdings, Inc. (TENB – Get Rating).
MCFE is one of the top players in the cybersecurity space. It operates through two segments: consumer and enterprise. Its security technologies enable home users and businesses to combat fileless attacks, viruses, malware, and other online threats. The company’s personal protection services include device security, online privacy and comprehensive Internet security, and identity protection.
MCFE’s net revenue for its fiscal first quarter ended March 27, 2021, increased 24.9% year-over-year to $442 million. The company’s net income for the quarter was $94 million, which represents a 944.4% year-over-year increase. Its adjusted EBITDA increased 25.2% year-over-year to $199 million. And its adjusted EPS for the quarter was $0.25.
Analysts expect MCFE’s EPS and revenue to increase 35% and 11.3%, respectively, year-over-year to $1.08 and $1.99 billion in 2022.
On May 18, MCFE announced its expansion of its MVISION Extended Detection and Response (XDR) solution. It has done so by correlating the extensive telemetry of its endpoint security solution, Secure Access Service Edge (SASE) solution, and threat intelligence solution powered by MVISION Insights. With growing cybersecurity threats, MCFE is expected to see increasing demand for its XDR solution because it delivers end-to-end threat visibility across all attack surfaces and can help significantly in containing a breach. Its stock has gained nearly 70% year-to-date to close yesterday’s trading session at $28.37.
MCFE’s strong fundamentals are reflected in its POWR Ratings. The stock has an overall B rating, which equates to Buy in our proprietary rating system. The POWR Ratings assess stocks by 118 different factors, each with its own weighting.
The stock has a B grade for Growth, Value and Quality. Click here to access MCFE’s ratings for Stability, Momentum and Sentiment as well.
MCFE is ranked #4 out of 24 stocks in the Software-Security industry.
Headquartered in Tokyo, Japan, TMICY develops and sells security-related software for computers and the Internet. The company provides user protection solutions, such as endpoint security, email and Web security, and SaaS application security. It operates through five geographical segments: Japan, North America, Europe, Asia Pacific, and Latin America.
For the first quarter ended March 31, 2021, TMICY’s net sales increased 5.9% year-over-year to $420 million. The company’s operating income increased 20.8% year-over-year to $115 million. Its ordinary income for the quarter was 12.13 billion Yen ($109.39 million) compared to 12.03 billion Yen ($108.49 million) in the prior-year quarter.
In its fiscal year 2021, TMICY’s revenue is expected to be…
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