1 Russell 2000 Growth Stock to Buy During the Market Sell-Off

Company Overview - Tenable specializes in vulnerability management, focusing on identifying weak points in devices, networks, and operating systems to prevent exploitation by malicious actors [4] - The company owns Nessus, the most accurate and widely deployed vulnerability management tool, which serves as a gateway to a broader portfolio of products including cloud security and identity security [5] Product Innovation - Tenable has introduced ExposureAI, an AI-driven tool that analyzes security data to enhance decision-making regarding security posture, leveraging the world's largest repository of exposure data with 1 trillion unique threats and vulnerabilities [6] - The entire suite of Tenable's cybersecurity products is now available on a single platform called Tenable One, aiming to meet all vulnerability management needs under one roof, potentially increasing revenue per customer and lifetime value [7] Financial Performance - In Q2 2024, Tenable generated $221.2 million in revenue, a 13% increase year-over-year, exceeding management's forecast of $218 million [9] - The number of corporate customers spending over $100,000 annually on Tenable's software rose by 19% year-over-year, indicating the growing importance of vulnerability management tools for larger organizations [10] - Despite a net loss of $14.5 million in Q2, this was an improvement from the previous year's loss of $15.9 million, with operating costs increasing by only 11.7% [12] Market Position - Tenable has a market capitalization of $4.9 billion, positioning it within the Russell 2000 small-cap index, significantly smaller than competitors like CrowdStrike and Palo Alto Networks, valued at $55 billion and $99 billion respectively [14] - The company's price-to-sales (P/S) ratio is 5.7, representing a more than 50% discount compared to CrowdStrike's 16.47 and Palo Alto's 13.54, despite similar growth rates [15] Growth Potential - Tenable's addressable market in the exposure management segment is valued at $33 billion, indicating substantial growth opportunities as the company has only begun to tap into this market [16]