According to a Pricewaterhouse Coopers survey of top CEOs worldwide, 48% rank cyber risk as the #1 threat to their business growth. Specifically, in the financial services sector, it was 59%. In both cases, cyber risk was high on the list, which also included climate change and health risks.
Also a top investment bank on Wall Street MorganStanley Recently, 100 top investment managers were asked who would do the least to cut costs in an economic downturn, and cybersecurity also topped the list.
As interest rates rise, the chances of a slowdown in the US economy will continue to increase. For investors trying to navigate tough stock market conditions, cybersecurity can be one of the best places to look for protection. Consistent (TENB -0.74%) is a leader in vulnerability management and that’s why right now.
The durable is yet to come
In a modern economy where organizations are moving more of their operations online, traditional cyber security tools just aren’t enough. Threat detection and vulnerability management are fast-growing segments of the industry and are focused on proactively closing gaps in cyber defenses and using advanced algorithms to predict where risks may come from.
In other words, it’s about staying one step ahead of potential cyber attackers.
Tenable is owned by Nessus, the world’s leading vulnerability management platform. It serves 30,000 organizations and has 2 million unique downloads. Nessus currently ranks first in several categories including acceptance, coverage, and accuracy. It protects customers against more than 70,000 known common vulnerabilities and compromises with the lowest false positives in the industry, which speaks for its reliability.
This leadership provided Tenable with a platform to build a complete set of cybersecurity tools tailored for a specific purpose. Tenable.cs focuses on protecting assets and operations in the cloud, which is currently a significant risk point for most large organizations. Tenable.cs integrates with most of the top cloud service providers such as: AmazonAmazon Web Services a Microsoft‘s Azure and serves major accounts such as the National Basketball Association (NBA).
Whether the company is in financial services, manufacturing, or even healthcare, Tenable has a cybersecurity solution.
Tenable is a reliable player
Sustainable stocks are down 6.4% in 2022. That doesn’t sound like a good result, but in comparison it does Nasdaq-100 technology index, which is down 26.6% year-on-year to date. Tenable outperforms the index by an impressive 20.2 percentage points.
The survey results above might lead to positive sentiment towards cybersecurity companies in general, but Tenable has also had a good experience with a consistent 34.8% compound annual revenue growth between 2016 and 2021. Contract value is growing much faster at $100,000 or more, increasing 54.6% each year over the same period.
This suggests that larger organizations are acting much faster to protect their businesses from cyber threats.
Tenable’s annual revenue is expected to climb to another all-time high in 2022, and its six-figure customer base continued to grow in the first quarter.
Wall Street is bullish on Tenable
Given the broader headwinds in the cybersecurity industry and Tenable’s growth, it’s not surprising that Wall Street is bullish on stocks. Of the 15 analysts covering it, 14 recommend buying while one remains overweight. No analyst recommends selling.
The average street target price for Tenable shares is $68.71, up 36% from today’s trading. However, three investment companies currently have price targets of $75, indicating a 49% growth potential.
While these returns aren’t stunning, they certainly would be if the US economy slipped into recession. And if that were to happen, cybersecurity spending would likely remain relatively unaffected by how organizations currently approach threats. This makes Tenable a great addition to any diversified stock portfolio.
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