Qualys (QLYS) Stock Surges 28.1% in a Month: What’s Driving the Growth?
Qualys Reports Impressive Growth Fueled by Product Innovations
Shares of Qualys (QLYS) have surged 28.1% in the last month, outperforming the Zacks Security industry, which returned 8.8%, and the S&P 500 index, which posted gains of 3%. Furthermore, the company excelled amid a 0.1% decline in the Zacks Computer and Technology sector during the same period. This strong performance indicates growing investor confidence in Qualys’ diverse portfolio, high customer retention, extensive partner network, and robust financial health.
In 2024, Qualys has expanded its product lineup with several new offerings and upgrades. Notably, it launched the first Risk Operations Center along with Enterprise TruRisk Management, highlighting its innovative approach. Another significant product, Qualys TotalAI, aims to mitigate risks associated with generative AI and large language models against cyber threats.
Other recent launches include TruRisk Eliminate and CyberSecurity Asset Management 3.0. The TruRisk Eliminate provides remediation options when traditional patching isn’t viable, using methods like patchless patching and targeted isolation.
CyberSecurity Asset Management 3.0 enhances the Enterprise TruRisk Platform by integrating Qualys’ advanced vulnerability assessment capabilities into an External Attack Surface Management system. The upgrade to Qualys TotalCloud 2.0 improves its AI-powered cloud-native application protection platform, offering users a consolidated view of cloud risks through a straightforward SaaS application.
As the top provider of Vulnerability Management, Detection and Response (VMDR) solutions, Qualys is seeing an increase in customer adoption of its VMDR solutions. By the end of the fourth quarter of 2023, VMDR customer penetration reached 56%, up from 48% a year earlier.
Qualys’ efforts have also led to a 15% rise in customer spending of $500,000 or more during the third quarter of 2024.
Qualys Stock Performance Over the Past Month
Image Source: Zacks Investment Research
Strategic Partnerships Enhance Qualys’ Market Position
Qualys is leveraging a vast partner network that includes major corporations like Verizon, Cognizant, Fujitsu, IBM, NTT, Accenture, Deutsche Telekom, Amazon Web Services, Microsoft (MSFT), Alphabet‘s (GOOGL) Google Cloud Platform, and Infosys (INFY).
Qualys and Microsoft have a longstanding collaboration. Recently, they worked together to enhance Microsoft’s Security Copilot product. Additionally, Qualys has partnered with Google Cloud to provide customers with a one-click vulnerability assessment via the Qualys Agent. Infosys utilizes Qualys VMDR and Multi-Vector Endpoint Detection and Response systems in its Cyber Next Platform.
These partnerships position Qualys as an appealing investment opportunity. The company anticipates revenue between $602.9 million and $605.9 million for 2024, with the Zacks Consensus Estimate at $604.5 million, indicating a 9% increase year-over-year.
Qualys also forecasts non-GAAP earnings per share ranging from $5.81 to $5.91, with the Zacks Consensus Estimate for 2024 earnings at $5.85, reflecting an 11% rise from the previous year.
Investment Outlook for Qualys
Qualys has established a strong foothold in the cybersecurity sector due to its innovative portfolio and extensive partner relationships. Its growing customer base suggests further potential. Based on these factors, investors should consider purchasing this Zacks Rank #2 (Buy) stock now.
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