QLYS (Long) - Ideal time for a cybersecurity bet

NASDAQ:QLYS   Qualys, Inc.
  • With the Israel/Ukraine situation developing, countries and companies will certainly not mind some extra cybersecurity spending. Hence, companies like QLYS are well-positioned to benefit
  • Any company making new all-time highs during a challenging time in the markets should catch your interest. This one just did it on impressive earnings and with a substantial buying volume.
  • I wish you could see the chart of revenue, which has grown by a consistent 20% year after year for the past decade (just a straight line up). Margins are fabulous with an 80% gross margin and a 23% profit margin.
  • The firm is incredible at handling its own capital with an ROCE of 41.7% (the industry average is 8.9%). The ROCE figure means that the firm has grown 309% over the last 5 years while using the same amount of capital - highly efficient
  • The firm has no debt (!) and earnings are expected to grow 10% next year.
  • I could go on and on, but I know that you all degenerates are here for the charts. Just to say, if you are thinking about something longer-term, this is a perfect pick

  • What else to say than to just to look at the chart setup
  • Clean break on an earnings announcement. The base could be slightly better, but I do not feel like letting this one run away.
  • RSI pointing higher, good volume, relative strength is high and the industry is driven by various robust tailwinds
  • Strong growth, solid fundamentals and a lovely chart - William O'Neill would be proud

  • I entered the stock today; I wanted to wait for a better base, but I do not think this one will be waiting
  • However, the weakness in the market might drag it down a bit and offer a better entry
  • For the stoploss, I would suggest that if the stock falls back down back to the black line and below, that would be a clear sign of a failed breakout.

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