Since my last Qualys, Inc. ( QLYS ) analysis , the stock has gained 8.3% in price. The company is now pushing harder to be perceived and bought as a risk operations workflow platform, instead of merely a vulnerabilityAnalyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other th ...

Industry Overview - The AI-driven bull run that began in 2023 and 2024 has continued into 2025, with strong momentum in the AI infrastructure segment [2] - The demand for AI infrastructure remains robust, supported by a bullish market scenario [2] Capital Expenditure Trends - Four of the "magnificent 7" stocks are set to invest $380 billion in 2025 for AI infrastructure development, representing a 54% year-over-year increase in capital spending [3] - Projections indicate that AI infrastructure capital expenditure will exceed $1 trillion by 2028, with estimates reaching a cumulative total of $5 trillion by 2030 [4] Investment Recommendations - Five small and mid-cap stocks are highlighted as potential beneficiaries of the AI boom in 2026: Calix Inc. (CALX), Qualys Inc. (QLYS), Innodata Inc. (INOD), Five9 Inc. (FIVN), and UiPath Inc. (PATH) [5][10] Company Profiles Calix Inc. (CALX) - CALX provides cloud and software platforms for communications service providers, integrating AI to enhance operations and subscriber engagement [8][9] - Expected revenue and earnings growth rates for CALX are 12.4% and 35.3%, respectively, for the next year [11] Qualys Inc. (QLYS) - QLYS specializes in cloud-based cybersecurity solutions, benefiting from increased demand amid rising cyber threats [12][15] - The company has a projected revenue growth rate of 7.7% and earnings growth of 6.5% for the next year [16] Innodata Inc. (INOD) - INOD plays a crucial role in the AI ecosystem by providing high-quality data for training language models, with expected revenue and earnings growth rates of 24.1% and 35.6%, respectively [18][21] - The company supports five of the seven major hyperscalers and is expanding its capabilities in AI services [19][20] Five9 Inc. (FIVN) - FIVN offers intelligent cloud software for contact centers, with a focus on AI-driven solutions that enhance customer interactions [22][25] - The expected revenue and earnings growth rates for FIVN are 9.5% and 8.3%, respectively, for the next year [26] UiPath Inc. (PATH) - PATH provides a robotic process automation platform that leverages AI to streamline operations, with new generative AI features enhancing its offerings [27][28] - The company anticipates revenue and earnings growth rates of 9.3% and 14.2%, respectively, for the next year [30]

We came across a bullish thesis on Qualys, Inc. on Asymmetric Edge’s Substack. In this article, we will summarize the bulls’ thesis on QLYS. Qualys, Inc.'s share was trading at $140.85 as of November 28th. QLYS’s trailing and forward P/E were 27.30 and 19.23 respectively according to Yahoo Finance. Cybersecurity Underdog: Allot Rides Telco Tailwinds and SMB Momentum Den Rise/Shutterstock.com Qualys, Inc. (QLYS) is a leading provider of cloud-based IT security and compliance solutions, offering a compreh ...

Core Insights - The Zacks Security industry is experiencing strong demand for cybersecurity products due to the increasing need for secure networks and cloud-based applications, particularly in hybrid work environments [1] - Companies such as CrowdStrike, Fortinet, Okta, and Qualys are benefiting from these trends, although short-term growth may be hindered by economic slowdown and increased operating expenses [2] Industry Overview - The Zacks Security industry includes companies providing on-premise and cloud-based security solutions, addressing needs like identity access management, infrastructure protection, and malware analysis [3] - The industry is categorized into Computer Security, Cybersecurity, and Information Security, each focusing on different aspects of data protection [3] Major Trends - Rising cyber threats are driving demand for IT security solutions, with an increase in cyberattacks impacting both individual companies and national security [4] - Accelerated digital transformation and cloud migration are fueling growth, as various sectors become more reliant on technology, increasing their vulnerability to cyberattacks [5] - Macroeconomic headwinds may lead to delayed IT spending, as organizations conserve cash amid economic uncertainties [6] - High operating expenses related to R&D and sales efforts could pressure profit margins in the near term [7] Industry Performance - The Zacks Security industry ranks 56, placing it in the top 23% of nearly 250 Zacks industries, indicating solid near-term prospects [8] - The industry's earnings outlook is positive, with aggregate earnings estimates for 2025 revised up to $1.61 from $1.40 a year ago [10] - Over the past year, the industry has underperformed the broader Zacks Computer and Technology sector and the S&P 500, gaining only 8.6% compared to 29.5% and 16.5% respectively [11] Valuation Metrics - The industry is currently trading at a forward 12-month price-to-sales ratio of 12, higher than the S&P 500's 5.3 and the sector's 6.69 [14] Company Highlights - **Qualys**: A leading provider of information security solutions, benefiting from demand for cloud-based cybersecurity solutions. The consensus estimate for its 2025 earnings has been revised upward by approximately 8% to $6.91 per share [21][24] - **CrowdStrike**: A leader in endpoint protection and cyberattack response services, with a strong portfolio and growth driven by digital transformation. The consensus mark for its fiscal 2026 earnings remains at $3.67 per share [27][29] - **Fortinet**: Provides network security solutions and is benefiting from strong demand from large enterprises. The Zacks Consensus Estimate for its 2025 earnings has been revised upward by 13 cents to $2.65 per share [32][35] - **Okta**: A leading provider of identity security, experiencing increased traction in its solutions. The consensus mark for its fiscal 2026 earnings remains at $3.37 per share [38][40]

Core Viewpoint - Qualys, Inc. (QLYS) shows potential as a stock pick due to a recent "golden cross" event, indicating a bullish trend reversal [1][4]. Technical Analysis - A "golden cross" occurs when a short-term moving average (50-day) crosses above a long-term moving average (200-day), suggesting a potential bullish breakout [2]. - The successful golden cross event consists of three stages: a price decline bottoming out, the shorter moving average crossing above the longer moving average, and the stock maintaining upward momentum [3]. Performance Metrics - Over the past four weeks, QLYS has gained 7.8%, indicating positive price movement [4]. - The stock currently holds a 1 (Strong Buy) rating on the Zacks Rank, suggesting it may be poised for further breakout [4]. - Earnings expectations for QLYS have improved, with 8 upward revisions and no downward changes in the last 60 days, leading to an increase in the Zacks Consensus Estimate [4]. Investment Consideration - Given the significant technical indicator and positive earnings estimate movement, QLYS should be considered for the watchlist [6].

Group 1: DraftKings and Flutter Entertainment - Wells Fargo initiated coverage of DraftKings (DKNG) with an Equal Weight rating and a price target of $31, expressing a bullish outlook on domestic online sports betting growth but indicating a wait for a better entry point due to near-term pressures and competition [1] - Flutter Entertainment (FLUT) was also initiated with an Overweight rating by Wells Fargo [1] Group 2: Carnival and Cruise Line Industry - Carnival (CCL) received an Overweight rating and a price target of $37 from Wells Fargo, which views the cruise sector as the most compelling within its gaming, leisure, and lodging coverage [1] - Norwegian Cruise Line (NCLH) and Royal Caribbean (RCL) were similarly initiated with Overweight ratings by Wells Fargo [1] Group 3: Cybersecurity Companies - Berenberg initiated coverage of Okta (OKTA) with a Buy rating and a price target of $145, considering both Okta and SentinelOne (S) as misunderstood stories with potential for re-rating [1] - CrowdStrike (CRWD) was initiated with a Hold rating and a price target of $600, with Berenberg noting that the market has already priced in its position at the top of the revenue duration curve [1] - Berenberg also started coverage of Rapid7 (RPD) and Qualys (QLYS) with Hold ratings [1] Group 4: Optical Communications - Mizuho initiated coverage of Lumentum (LITE) with an Outperform rating and a price target of $290, highlighting its role as a leading supplier in optical communications and lasers, benefiting from surging demand in artificial intelligence [1]

Core Insights - Qualys Inc (NASDAQ:QLYS) is recognized as one of the best AI stocks to buy, particularly noted for its Agentic AI solutions in cybersecurity [1] - The company recently experienced a stock price increase following positive financial results and raised guidance, leading to multiple upgrades from Wall Street analysts [2] Company Overview - Qualys provides cybersecurity and compliance solutions that help clients identify, prioritize, and remediate IT infrastructure risks [3] - The company operates on a software-as-a-service model with renewable annual subscriptions, which supports sustainable growth in the cybersecurity sector [3] Financial Performance - Qualys has demonstrated high operating margins and growing cash flow generation, alongside a strong balance sheet [3] - The Managed Risk Operation Center is reportedly seeing faster commercial deployments than previously anticipated by management [2] Market Position - Qualys is considered well-managed within the industry, with strategic decisions that have enhanced product quality, margins, and competitive advantages [3] - The company's products are viewed as critical yet low-cost relative to overall security budgets, contributing to high retention rates and resilience during economic downturns [3]

Core Insights - Donovan Jones is an IPO research specialist with 15 years of experience in identifying high-quality IPO opportunities [1] - He leads the investing group IPO Edge, which provides actionable information on growth stocks, including first-look IPO filings and an IPO calendar [1] Company and Industry Summary - IPO Edge offers a comprehensive guide to IPO investing, covering the entire lifecycle from filing to listing and lockup expiration dates [1]

Core Insights - Donovan Jones is an IPO research specialist with 15 years of experience in identifying high-quality IPO opportunities [1] - He leads the investing group IPO Edge, which provides actionable information on growth stocks, including first-look IPO filings and an IPO calendar [1] Company and Industry Summary - IPO Edge offers a comprehensive guide to IPO investing, covering the entire lifecycle from filing to listing and lockup expiration dates [1]

Core Insights - Qualys reported a 10% year-over-year revenue growth to $169.9 million and non-GAAP EPS of $1.86, exceeding analyst expectations [1] - The stock rose approximately 20.2% following the earnings report [1] Financial Performance - Adjusted gross margin improved to 85% from 83% year-over-year, while adjusted operating margin increased to 47% from 43% [4] - The company raised its full-year revenue outlook to a range of $665.8 million to $667.8 million, indicating a growth of about 10% compared to 2024 [5] - Non-GAAP EPS outlook was also increased to a range of $6.93 to $7.00 [5] Strategic Developments - The Risk Operations Center offering is gaining traction, contributing to solid results and faster-than-expected deployments [3][6] - Qualys secured significant wins with federal and state agencies, enhancing its government business prospects [4][6] - The GovCloud Platform received FedRAMP High Authorization, further opening opportunities in government contracts [4] Market Position - Qualys stock trades at around 21 times the average analyst estimate for full-year adjusted earnings, reflecting an improved growth trajectory [6]