Tenable Holdings is the IBD Stock Of The Day as demand increases for its cybersecurity risk exposure management products. TENB stock is nearing a buy point.
Shares of the Columbia, Md.-based company have formed a flat base with a buy point of 46.97, according to IBD MarketSmith charts.
On the stock market today, TENB stock advanced 1.9% to close at 45.55.
TENB stock has risen since the firm reported better-than-expected results for the fourth quarter on Feb. 7.
Tenable Sales, Earnings Top Estimates
Tenable's adjusted earnings jumped 140% year over year to 12 cents a share in the quarter ended Dec. 31. Further, sales climbed 24% to $184.6 million. TENB stock analysts polled by FactSet had expected Tenable earnings of 7 cents a share on sales of $181.4 million.
"We are seeing incredible traction with Tenable One, which helps customers understand and reduce risk across the interconnected attack surface," Chief Executive Amit Yoran said in a news release.
For the current quarter, Tenable forecast sales of $187 million, up 17%, based on the midpoint of its outlook. Also, it predicts adjusted earnings of 2 to 3 cents a share, vs. 6 cents in the year-earlier period.
About 43,000 organizations worldwide use Tenable products to understand and reduce cyber risk.
TENB Stock Gets Buy Rating
Wells Fargo analyst Andrew Nowinski reiterated his overweight, or buy, rating on TENB stock after meeting with company management earlier this month. Further, he has a price target of 58 on TENB stock.
In a note to clients, Nowinski said Tenable One will be key to the company's outperformance in 2023.
Tenable One, introduced in October, has an opportunity to consolidate cybersecurity spending, Nowinski said. Meanwhile, it could "replace many point-product solutions," he said.
"Tenable One takes the core vulnerability data, combines it with threat intelligence, which can then show the customer the likely path an attacker might attempt to exploit," Nowinski said. "It enables customers to better understand where they are vulnerable and the threats that could impact their organization."
TENB stock ranks fifth out of 37 stocks in IBD's Computer Software-Security industry group, according to IBD Stock Checkup. Also, it has an IBD Composite Rating of 88 out of 99.
IBD's Composite Rating is a blend of key fundamental and technical metrics to help investors gauge a stock's strengths. The best growth stocks have a Composite Rating of 90 or better.
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