NEW YORK (TheStreet) -- With better-than-expected results recently released from Fortinet (FTNT) - Get Report, it's tough to ignore the money-making opportunities that still exist cybersecurity stocks. And this makes shares of FireEye (FEYE) - Get Report, a leading enterprise security company, ones to own despite recent gains and -- seemingly -- expensive price.
Headquartered in Milpitas, Calif., FireEye, which competes with not only Cisco Systems (CSCO) - Get Report but also Palo Alto Networks (PANW) - Get Report, reports second-quarter earnings results Thursday after the close. With the stock gaining almost 50% in the past six months and up almost 60% in 2015, one would be hard-pressed to find a cybersecurity-related stock that's hotter than FireEye.
For the quarter that ended June, the average analyst estimate calls for a loss of 48 cents a share, a 7-cent improvement from last year's loss of 55 cents. Revenue is projected to climb some 51% year over year to $143 million. For the full year ending in December, analysts expect of loss of $1.80 a share, up from last year's loss of $1.97, while revenue of $632.6 million calls for a 48% year-over-year climb.
Despite the fiercely competitive landscape, FireEye has distinguished itself with its dynamic threat-prevention platform, web gateways, firewalls and intrusion detection, which are growing at rapid rates. This puts FireEye in a position to double its customer base in the next couple of years. This is even after the company -- driven by its aggressive sales and marketing efforts -- has already doubled its market share in the past two years.
Cybersecurity is still an under-penetrated market. Data suggests only 33% of corporations are able to detect when a breach has occurred. And a much lower percentage of corporations know how to effectively respond to the threat after they become aware of a breach. This explains why, according to data by research firm IDC, the market for detecting, preventing and resolving advanced cybersecurity threats is projected to skyrocket in the sext five years.
There are opportunities on the consumer side, too. In the next two years, roughly 15% of mobile devices will be accessed by biometrics -- such as the fingerprint-scanning feature on the more recent models of Apple's (AAPL) - Get Report iPhones, predicts IDC. And that figure is projected to surpass 50% of mobile devices by 2020, further underscoring how critical FireEye's capabilities will become.
These trends mean that FireEye is in a growth industry, suggesting that FireEye should have little problem meeting its future growth objectives.
That bodes well for the stock in the long term. And even if growing pains and competitive pressures do emerge, FireEye will still have the benefit of fighting for its share of a larger pie, as opposed to one that is shrinking. Investors should get more clarity Thursday.
This article is commentary by an independent contributor. At the time of publication, the author held no position in the stocks mentioned.