Q2 STOCKS TO BUY

New Milestones: Cyberark, FireEye, Palo Alto Networks

Cyberark Software Ltd (NASDAQ:CYBR), FireEye Inc (NASDAQ:FEYE), and Palo Alto Networks Inc (NYSE:PANW) could each be poised to extend their long-term rallies

Jun 18, 2015 at 1:57 PM
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Cyberark Software Ltd (NASDAQ:CYBR), FireEye Inc (NASDAQ:FEYE), and Palo Alto Networks Inc (NYSE:PANW) each touched new highs today, lifted by broader market tailwinds. This isn't anything new -- cybersecurity stocks have been on fire lately. However, there are reasons to believe more upside could be in store.

  • Despite CYBR's 86.4% year-to-date advance to trade at $73.89 -- and new record high of $76.35 -- 63% of covering analysts rate the stock a "hold" or worse. What's more, the equity's consensus 12-month price target of $60.80 stands at a nearly 18% discount to current levels. This could pave the way for a round of bullish analyst notes, which could boost Cyberark Software Ltd to even higher highs.

  • Similarly, FEYE shot to an annual peak of $55.33 earlier, and was last seen 1% higher at $54.62 -- bringing its year-to-date lead to 73%. What's more, the shares have been riding atop support from their 10-day moving average for the past month. Nevertheless, almost half of the analysts tracking FireEye Inc rate it a "hold" or worse, and its average 12-month price target of $50.07 rests below the stock's current perch. In other words, these shares could benefit from upgrades and/or price-target hikes, as well.

  • Finally, PANW is fresh off an all-time high of $183.96, up 1.2% at $182.71 -- thanks to a $20 price-target hike to $200 at RBC. In fact, the stock has more than doubled in value on a year-over-year basis. Nevertheless, traders at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) have bought to open puts over calls at a faster-than-usual clip recently, per the security's 50-day put/call volume ratio of 1.03 -- in the 65th annual percentile. A capitulation among skeptics could result in tailwinds for Palo Alto Networks Inc.
 

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