Spotting Winners: Qualys (NASDAQ:QLYS) And Cybersecurity Stocks In Q4
Let's dig into the relative performance of Qualys (NASDAQ:QLYS) and its peers as we unravel the now-completed Q4 cybersecurity earnings season.
Cybersecurity continues to be one of the fastest-growing segments within software for good reason. Almost every company is slowly finding itself becoming a technology company and facing rising cybersecurity risks. Businesses are accelerating adoption of cloud-based software, moving data and applications into the cloud to save costs while improving performance. This migration has opened them to a multitude of new threats, like employees accessing data via their smartphone while on an open network, or logging into a web-based interface from a laptop in a new location.
The 9 cybersecurity stocks we track reported a mixed Q4. As a group, revenues beat analysts' consensus estimates by 1.1% while next quarter's revenue guidance was in line.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 8.3% since the latest earnings results.
Founded in 1999 as one of the first subscription security companies, Qualys (NASDAQ:QLYS) provides organizations with software to assess their exposure to cyber-attacks.
Qualys reported revenues of $159.2 million, up 10.1% year on year. This print exceeded analysts' expectations by 1.9%. Despite the top-line beat, it was still a mixed quarter for the company with an impressive beat of analysts' EBITDA estimates but full-year EPS guidance missing analysts' expectations significantly.
"Customers are starting to leverage the breadth and depth of the Qualys Enterprise TruRisk Platform as they look to rearchitect and transform their security stacks," said Sumedh Thakar, Qualys' president and CEO.
Unsurprisingly, the stock is down 11.6% since reporting and currently trades at $124.50.
Is now the time to buy Qualys? Access our full analysis of the earnings results here, it's free.
After successfully selling all four of his previous cybersecurity companies, Jay Chaudhry's fifth venture, Zscaler (NASDAQ:ZS) offers software-as-a-service that helps companies securely connect to applications and networks in the cloud.
Zscaler reported revenues of $647.9 million, up 23.4% year on year, outperforming analysts' expectations by 2.1%. The business had a very strong quarter with a solid beat of analysts' annual recurring revenue and EBITDA estimates.
The market seems happy with the results as the stock is up 7.1% since reporting. It currently trades at $210.54.
Is now the time to buy Zscaler? Access our full analysis of the earnings results here, it's free.
Founded by a duo of former Israeli Defense Forces cyber warfare engineers, Varonis (NASDAQ:VRNS) offers software-as-service that helps customers protect data from cyber threats and gain visibility into how enterprise data is being used.
Varonis reported revenues of $158.5 million, up 2.9% year on year, falling short of analysts' expectations by 4.2%. It was a softer quarter as it posted full-year EPS guidance missing analysts' expectations.
Varonis delivered the weakest performance against analyst estimates and slowest revenue growth in the group. As expected, the stock is down 12% since the results and currently trades at $41.28.
Read our full analysis of Varonis's results here.
Founded during the aftermath of the financial crisis in 2009, Okta (NASDAQ:OKTA) is a cloud-based software-as-a-service platform that helps companies manage identity for their employees and customers.
Okta reported revenues of $682 million, up 12.7% year on year. This print topped analysts' expectations by 2.1%. It was a strong quarter as it also logged a solid beat of analysts' billings estimates and an impressive beat of analysts' EBITDA estimates.
Okta delivered the highest full-year guidance raise among its peers. The stock is up 15.2% since reporting and currently trades at $100.53.
Read our full, actionable report on Okta here, it's free.
Founded in 2005 by cybersecurity engineer Nir Zuk, Palo Alto Networks (NASDAQ:PANW) makes hardware and software cybersecurity products that protect companies from cyberattacks, breaches, and malware threats.
Palo Alto Networks reported revenues of $2.26 billion, up 14.3% year on year. This result beat analysts' expectations by 0.8%. More broadly, it was a mixed quarter as it also recorded an impressive beat of analysts' EBITDA estimates but a miss of analysts' billings estimates.
The stock is down 13% since reporting and currently trades at $175.65.
Read our full, actionable report on Palo Alto Networks here, it's free.
As a result of the Fed's rate hikes in 2022 and 2023, inflation has come down from frothy levels post-pandemic. The general rise in the price of goods and services is trending towards the Fed's 2% goal as of late, which is good news. The higher rates that fought inflation also didn't slow economic activity enough to catalyze a recession. So far, soft landing. This, combined with recent rate cuts (half a percent in September 2024 and a quarter percent in November 2024) have led to strong stock market performance in 2024. The icing on the cake for 2024 returns was Donald Trump's victory in the U.S. Presidential Election in early November, sending major indices to all-time highs in the week following the election. Still, debates around the health of the economy and the impact of potential tariffs and corporate tax cuts remain, leaving much uncertainty around 2025.
Want to invest in winners with rock-solid fundamentals? Check out our Hidden Gem Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
Join Paid Stock Investor Research
Help us make StockStory more helpful to investors like yourself. Join our paid user research session and receive a $50 Amazon gift card for your opinions. Sign up here.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Wire
4 minutes ago
- Business Wire
Valley National Bancorp Announces New General Counsel
MORRISTOWN, N.J.--(BUSINESS WIRE)-- Valley National Bancorp (NASDAQ:VLY), the holding company for Valley National Bank, announced that Lyndsey Sloan has joined the company as Senior Executive Vice President, General Counsel. In this role, Ms. Sloan will oversee the legal function at Valley and serve as a strategic advisor to executive management and the Board of Directors. 'We are excited to welcome Lyndsey to Valley,' said Valley CEO Ira Robbins. 'Lyndsey's deep experience in banking, governance, and complex transactions will help Valley navigate an evolving landscape as we continue to deliver relationship-driven service and solutions to our clients.' Ms. Sloan brings over two decades of legal and leadership experience in the financial services and technology sectors. Most recently, she served as Deputy General Counsel at The Huntington National Bank, where she led a 30-attorney team advising across business lines and functions. Her background includes overseeing regulatory relations, advising on numerous transactions, launching an enterprise-wide patent program to support innovation, and serving as Corporate Secretary to the Board of Directors. Earlier in her career, Ms. Sloan was General Counsel for Global Technology Finance and for a global software company, where she helped lead the sale of the business to its largest competitor. 'I am excited to join Valley's talented leadership team and to contribute to the incredible culture formed by nearly 100 years in banking,' said Ms. Sloan. 'I look forward to collaborating with the leadership team to deliver value to Valley's customers, communities, associates, and shareholders.' Ms. Sloan succeeds Gary Michael, who has retired after more than 19 years of dedicated service to Valley. About Valley As the principal subsidiary of Valley National Bancorp, Valley National Bank is a regional bank with $62 Billion in total assets. Valley is committed to giving people and businesses the power to succeed. Valley operates many convenient branch locations and commercial banking offices across New Jersey, New York, Florida, Alabama, California, and Illinois, and is committed to providing the most convenient service, the latest innovations and an experienced and knowledgeable team dedicated to meeting customer needs. Helping communities grow and prosper is the heart of Valley's corporate citizenship philosophy. To learn more about Valley, go to or call our Customer Care Center at 800-522-4100.
Forbes
13 minutes ago
- Forbes
SOFI Stock To $30?
CHONGQING, CHINA - APRIL 23: In this photo illustration, the logo of SoFi Technologies, Inc. is ... More displayed on a smartphone screen, with a stock market chart visible in the background, reflecting investor sentiment and recent trading activity, on April 23, 2025, in Chongqing, China. SoFi is an American online personal finance company that offers digital banking, student loan refinancing, investing, and financial planning services through its mobile-first platform. (Photo illustration by) SoFi Technologies (NASDAQ: SOFI) has been in the news recently, and for valid reasons. The stock has jumped 16% in just a week, reaching a new 52-week high of $18. What is fueling this momentum, and is there additional potential for growth? The recent surge is due to SoFi's announcement regarding the return of cryptocurrency investments on their platform later this year. This is not solely about providing crypto trading – the firm intends to utilize blockchain technology for quick international money transfers, placing itself at the crossroads of traditional finance and digital assets. The market's response has been overwhelmingly favorable, and it is easy to understand why. Crypto services could emerge as a notable revenue generator, especially as digital assets continue to achieve widespread acceptance. Nevertheless, if you prefer an upside with a more stable experience than an individual stock, think about the High Quality portfolio, which has surpassed the S&P, and achieved over 91% returns since its inception. Additionally, check out – What's Happening With WOLF Stock? Strong Revenue Growth SoFi's financial performance has been remarkable, particularly in comparison to broader market indices: These figures present a compelling growth narrative that greatly surpasses the overall market. The Bigger Picture: Looking Ahead to 2027 Here's where the investment perspective becomes intriguing. We anticipate SoFi's revenues will expand by approximately 21% annually, surpassing $5 billion by 2027 – essentially doubling from the estimated $2.6 billion in 2024. However, here's the catch: these estimates do not even include the prospective boost from the new cryptocurrency offerings. To provide perspective, Robinhood generated $626 million in crypto trading revenue in 2024 with around 24 million users. With SoFi's 8.5 million members and a generally higher net worth customer base, capturing even a small portion of Robinhood's per-user crypto revenue could contribute an additional $150-300 million per year to SoFi's revenue within just a few years. This indicates that actual growth could significantly exceed current projections. Valuation: The 80% Upside Scenario Currently priced at $18, SoFi has a price-to-sales ratio of 7.3x based on the trailing twelve-month revenue. This is slightly above its four-year average of 5.5x, reflecting growing optimism about crypto services and potential improvements in interest rates. Now, if SoFi's revenues increase 2.5 times over the next three years (better than the forecasted 2 times), the P/S multiple will reduce to 3.1x from its current level, assuming the stock price remains constant, correct? But that's what SOFI's investors are banking on not occurring! If revenues expand 2.5 times over the coming years, instead of the P/S declining from around 7.3x presently to about 3.1x, a scenario where the P/S metric contracts more gently, perhaps to around 5.5x, appears more viable (within the typical fintech range of 4x-7x and SOFI stock's own historical norm). At 5.5x price-to-sales, SoFi's share price would climb to approximately $33, representing an 80% increase from current levels. The reasoning is simple: as revenues rise significantly, even if the valuation multiple compresses slightly, the absolute stock price should experience a notable ascent. Risks to Consider Before getting too enthusiastic about the potential upside, let's discuss the important risks. This pattern of volatility indicates the stock could experience significant challenges during periods of market stress. The Bottom Line SoFi offers an appealing investment opportunity with a legitimate 80% upside potential, propelled by strong revenue growth and the forthcoming launch of its crypto platform. The company's history of outperforming market growth rates is noteworthy, and the integration of cryptocurrency could speed up this trend. However, investors should be fully aware of the associated risks. Sensitivity to interest rates, competitive pressures, and the stock's tendency for increased volatility during market downturns are genuine concerns that could affect returns. Now, we implement a risk assessment framework while assembling the Trefis High Quality (HQ) Portfolio which, comprising 30 stocks, has a proven track record of comfortably outperforming the S&P 500 in the past four years. What accounts for this? As a group, HQ Portfolio stocks have shown better returns with lower risk compared to the benchmark index; creating a less tumultuous investment experience, as demonstrated in HQ Portfolio performance metrics.
Business Wire
13 minutes ago
- Business Wire
TCDC, New Era Helium's JV, signs LOI with Leading Global Provider of High Performance Cloud for AI and Modern Workloads for 250MW AI Data Center Joint Venture in the Permian Basin
MIDLAND, Texas--(BUSINESS WIRE)--New Era Helium, Inc. (Nasdaq: NEHC) ('NEH' or the 'Company'), a next-gen exploration and production platform in the Permian Basin, today announced that Texas Critical Data Centers LLC ('TCDC'), NEH's joint venture with Sharon AI, signed a non-binding Letter of Intent ('LOI') with a leading global provider of High Performance Cloud for AI and Modern Workloads, marking a major milestone in NEH's digital infrastructure strategy within the Permian Basin. Under the terms outlined in the LOI, the joint venture contemplates the acquisition of land and a power purchase agreement for up to 250 megawatts of behind-the-meter electricity, purpose-built to support advanced data center operations and next generation compute infrastructure. The prospective customer is rapidly scaling its global AI operations and has identified TCDC's Ector County, Texas location as a potential site to further their efforts within the U.S. TCDC, established in 2024, is advancing the development of a 250MW artificial intelligence (AI) and high-performance computing (HPC) campus in Ector County, Texas. The planned 250MW facility is being designed to meet surging demand for AI and cloud GPU infrastructure, integrating advanced energy and cooling technologies to reduce environmental impact while delivering best-in-class operational efficiency. Work is progressing on final site due diligence on its intitial 235 acres, which is set to close on or before July 10, 2025. The next project milestones are expected to include updates on natural gas supply and advancing grid interconnection planning. E. Will Gray II, CEO of New Era Helium, Inc. commented: 'This agreement marks a pivotal step in aligning our energy platform with the surging demand for AI infrastructure. By combining our strategically located assets in the Permian Basin with a next-gen AI partner, we're unlocking a powerful opportunity to participate in the digital buildout of tomorrow's economy right at the intersection of energy and innovation.' About New Era Helium, Inc. New Era Helium, Inc. is a next-gen exploration and production platform unlocking the full value of its Permian Basin assets. The Company controls over 137,000 acres in Southeast New Mexico, with more than 1.5 Bcf of proved and probable helium reserves sourced alongside natural gas production. Through its joint venture, Texas Critical Data Centers, LLC, NEHC is capturing multi-sector growth across helium, power, and data infrastructure. For more information, visit Follow New Era Helium on LinkedIn and X. Cautionary Note Regarding Forward-Looking Statements This press release contains 'forward-looking statements.' Forward-looking statements reflect the current view about future events. When used in this press release, the words 'anticipate,' 'believe,' 'estimate,' 'expect,' 'future,' 'intend,' 'plan' or the negative of these terms and similar expressions, as they relate to us or our management, identify forward-looking statements. Such statements include, but are not limited to, statements contained in this press release relating to our business strategy, our future operating results and liquidity and capital resources outlook. Forward-looking statements are based on our current expectations and assumptions regarding our business, the economy and other future conditions. Because forward–looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Our actual results may differ materially from those contemplated by the forward-looking statements. They are neither statements of historical fact nor guarantees of assurance of future performance. We caution you therefore against relying on any of these forward-looking statements. Important factors that could cause actual results to differ materially from those in the forward-looking statements include, without limitation: (a) our ability to effectively operate our business segments; (b) our ability to manage our research, development, expansion, growth and operating expenses; (c) our ability to evaluate and measure our business, prospects and performance metrics; (d) our ability to compete, directly and indirectly, and succeed in a highly competitive and evolving industry; (e) our ability to respond and adapt to changes in technology and customer behavior; (f) our ability to protect our intellectual property and to develop, maintain and enhance a strong brand; and (g) other factors (including the risks contained in the 'Risk Factors' section of our Annual Report on Form 10-K for the fiscal year ended December 31, 2024. Should one or more of these risks or uncertainties materialize, or should the underlying assumptions prove incorrect, actual results may differ significantly from those anticipated, believed, estimated, expected, intended or planned. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We cannot guarantee future results, levels of activity, performance or achievements. Except as required by applicable law, including the securities laws of the United States, we do not intend to update any of the forward-looking statements to conform these statements to actual results.
