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Could FireEye Stock Surge in May 2018?

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FireEye’s stock performance

Previously in this series, we discussed FireEye’s (FEYE) recently launched security offerings as well as its strategic partnership with Oracle (ORCL). FireEye stock, which is prone to rising and falling, has displayed similar behavior this year. 

However, a partnership announcement with Oracle gave a boost to FireEye stock, which has gained 22.5% in 2018 year-to-date. Increased focus on cybersecurity gave an additional lift to FireEye stock. The chart below shows the results of predictions that came to pass with respect to various cybersecurity companies, including FireEye.

In the last year, FireEye stock has soared 41.0%. On the other hand, the S&P 500 Index (SPX) has lost 1.0% in 2018 year-to-date. However, the index has gained 12.0% in the last year. 

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The PureFunds ISE Cyber Security ETF (HACK) is a cybersecurity ETF that invests in 40 cybersecurity companies, including FireEye, Proofpoint (PFPT), Barracuda Networks (CUDA), Fortinet (FTNT), Symantec (SYMC), Cisco Systems (CSCO), and Palo Alto Networks (PANW). HACK has risen 12.0% in 2018 year-to-date, and it’s risen 24.0% in the last year. So, FireEye stock has outperformed the S&P 500 Index as well as the PureFunds ISE Cyber Security ETF.

FireEye’s 1Q18 expectations

FireEye (FEYE) is scheduled to announce its 1Q18 earnings on May 2. Analysts expect FireEye’s revenues to reach $194.0 million in the quarter. Analysts expect FEYE to report earnings per share of -$0.04 in 1Q18. These metrics translate to 12.0% growth year-to-date and 56.0% in the last year.

If FireEye can report growth and exceed analysts’ expectations in 1Q18, this could provide a stimulus to its positive trend in 2018 year-to-date. 

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