Our Stock of the Week is Tenable Holdings Inc. (TENB). TENB offers cybersecurity solutions internationally. It describes itself as: "The Cyber Exposure company. Approximately 40,000 organizations around the globe rely on Tenable to understand and reduce cyber risk. As the creator of Nessus®, Tenable extended its expertise in vulnerabilities to deliver the world's first platform to see and secure any digital asset on any computing platform. Tenable customers include approximately 60 percent of the Fortune 500, approximately 40 percent of the Global 2000, and large government agencies.
The cybersecurity sector is the third highest rank industry in IBD's 197 groups and is up nearly 10% so far in 2023. There is clear secular demand in the industry that should keep buying interest high.
Last week, TENB broke out of a trading range following a very strong earnings report with beats on both the top and bottom lines. The company is now expected to grow 35% in 2024 to $1.06 and a further 23% in 2025.
Analysts raised their target prices across the board. There are now 14 buy ratings with an average target price of about $60, which is an increase of $16 over Friday's close. Wedbush has the high target at $65 and stated that Tenable "delivered a trophy case quarter, along with strong guidance that speaks to the next chapter of the Tenable story taking hold. This remains one of Wedbush's favorite cyber security names and is just hitting its stride in the market with more strategic cloud deals leading the way."
Technically, the stock is a bit extended after the breakout, and we are looking for opportunities to buy on a pullback. Market conditions will determine how much more momentum it has in the near term, but the strength of the industry bodes well for this name in the longer term. As always, we will not chase the open on Monday but will look to aggressively trade the stock as it develops.
This post is for educational purposes only! This is not advice or a recommendation. We do not give investment advice. Do not act on this post. Do not buy, sell, or trade the stocks mentioned herein. We WILL actively trade this stock differently than discussed herein. We will sell into strength and buy or sell anytime for any reason. We will actively trade into any unusual activity. At the time of this post, principals, employees, and affiliates of Shark Investing, Inc. and/or principals, clients, employees, and affiliates of Hammerhead Financial Strategies, LLC, directly or indirectly, controlled investment and/or trading accounts containing no positions in TENB. To accommodate the objectives of these investing and/or trading accounts, the trading in these shares will be contrary to and/or inconsistent with the information contained in this posting.
