Trade of the Day: FEYE Stock Could Deliver Another 20%-Plus Profit

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FireEye Inc (FEYE) — This computer software company invented a virtual machine-based security platform that offers real-time protection from highly sophisticated, next-generation cyberattacks. Its 3,700-plus customers include government and enterprise customers across 67 countries.

I first featured FEYE stock as the Trade of the Day on Jan. 13. I recommended shares be bought on a pullback to $32 with an objective of $40. On Jan. 29, FEYE stock fell to just over $31, and the target was hit on Feb. 12, resulting in a 25% profit in just two weeks. For investors who held, FEYE stock rewarded them by climbing to over $55 in mid-June before beginning a slide into the low $40s.

On July 30, the company delivered a better-than-expected quarterly report with a loss of 41 cents per share on revenue of $147 million. Analysts had expected a 48-cent loss on $143 million in sales. However, the good news was overshadowed by the announcement of the departure of the company’s CFO and shares fell.

Numerous firms have upgraded their opinion of FEYE stock recently. On Wednesday, Imperial Capital upped its rating to “outperform” from “in-line” and raised the price target to $55 from $45.50. Analysts’ mean price target is just over $54.

FEYE stock is again in a buying zone after falling from a high above $55 in June to long-term support near its 200-day moving average at about $40.50. Although volume is low, FEYE stock is pushing against an intermediate resistance line with a high probability of punching through it. MACD is also very close to a buy signal.

Buy FEYE stock at $43 for a four-month trade to $55 for a gain of 23%. A stop-loss order may be entered at $38.50.

FEYE Stock Chart
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Article printed from InvestorPlace Media, https://investorplace.com/2015/08/fireeye-inc-feye-stock-trade-of-the-day/.

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