FireEye Inc (FEYE) — This computer software company invented a virtual machine-based security platform that offers real-time protection from cyberattacks to more than 1,500 government and enterprise customers. Called the Multi-Vector Virtual Execution (MVX) engine, it can identify threats that traditional signature-based technologies are unable to detect.
FEYE stock rallied Monday following a cyberattack on the Pentagon. ISIS supporters hacked the U.S. Central Command’s Twitter and YouTube accounts, posting images of private data and promotional videos for the terrorist group. This happened just as President Obama was calling for greater cybersecurity protection.
FEYE stock also gained Friday when the company released a new report analyzing cyberattacks that targeted more than 1,200 organizations.
FireEye is considered a leading provider in its industry that specializes in cloud-based systems. In January 2014, it acquired Mandiant, a leader in advanced endpoint security products and incident response management.
FEYE stock jumped nearly 5% Monday, breaking from an eight-month consolidation when it closed above its 200-day moving average at $34.45. Volume was high, and the MACD indicator issued a buy signal, confirming a breakout from a right triangle.
However, FEYE stock is speculative and the company does not have a solid earnings history. The threat against the Pentagon created demand for shares, but when buyers’ focus on security stocks wanes, traders should have a chance to purchase shares at a lower price.
Buy FEYE stock on a pullback to $32 with a trading objective of $40, near its July high above $41, for a gain of 25%. A stop-loss order should be entered at $28.
