1 Small-Cap Stock Down 34% to Buy on the Dip

Group 1: Market Overview - Investors have heavily invested in major AI companies, contributing to the S&P 500's annual gains exceeding 25% for two consecutive years, a performance last seen in 1997 and 1998 [1] - There are overlooked AI opportunities in smaller companies, such as Tenable, which is a leader in vulnerability management within the cybersecurity sector [2] Group 2: Company Profile - Tenable specializes in vulnerability management, identifying weaknesses in networks to prevent exploitation, which is crucial in the digital age where businesses face constant cyber threats [3] - The Nessus platform is Tenable's flagship tool, recognized for its accuracy and widespread deployment, with over 2 million downloads [4] Group 3: Product Offerings - Tenable's cloud platform includes AI Security Posture Management (AI-SPM), designed to secure data and identify vulnerabilities in cloud-based AI development platforms [5][6] - Larger clients can utilize Tenable One, a comprehensive platform that extends AI-powered protection across all IT assets, featuring tools like ExposureAI that analyze data from 1 trillion unique threats [7] Group 4: Financial Performance - In 2024, Tenable achieved a record revenue of $900 million, marking a 13$36.3 million, down 53% from $78.2 million in 2023 [9] - On a non-GAAP basis, Tenable reported a profit of$158.6 million, a 63% increase compared to 2023 [10] Group 5: Valuation and Market Potential - Tenable's price-to-sales (P/S) ratio is 5.3, which is lower than many cybersecurity peers, despite its slower revenue growth compared to companies like CrowdStrike and Zscaler [12] - Tenable's management estimates its addressable market at $33 billion, indicating significant long-term growth potential, especially as AI adoption increases [14]