Yes, this year has been unkind to shareholders, with the stock losing one-fourth of its value after FireEye reported first-quarter earnings.
The prevailing environment is also largely favorable for FireEye to keep pushing the numbers higher.
FireEye has always been under the shadow of a rumored imminent takeover. Last year, Cisco was supposed to be the buyer, and this time it is IBM, a Warren E. Buffett holding.
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Notwithstanding that speculation, FireEye is looking at key leadership changes, with Kevin Mandia replacing Dave DeWalt as chief executive starting next month.
The company, which has a bevy of clients, including U.S. federal and foreign governments along with security-conscious enterprises, looks to be on the right track.
FireEye has always has been a sharp and steady contender. But Wall Street has ignored its robust revenue growth.
The common grouse is that sales haven't been as heartening as expected.
For instance, the first-quarter 34% revenue increase to $168 million was solid, but analysts focused on the $3.8 million miss. Second-quarter guidance of $185 million in sales was below expectations of about $192.8 million.
FireEye is poised to be successful in transitioning into an "as-a-service" model. The company's strength in dealing with the growing complexities of the security environment and its best-in-class intelligence-gathering capabilities are unquestionable.
Further, FireEye can also be expected to benefit from international expansion, without a noteworthy upsurge in operating expenses.
In fact, the company could hit the sweet spot a lot sooner if it reaches about $1 billion in annual sales in 2017.
FireEye is already looking far better on a free-cash-flow basis. The company should deliver a strong and sustainable free-cash-flow reservoir in the next two years.
Consider peers such as Symantec (SYMC) - Get Report , which isn't really expected to increase revenue over the next two years, yet it sports a price-sales ratio of 2.9 times. Giant rival Cisco, which is barely increasing sales, has a multiple of 2.8.
Stay with FireEye, and reap the rewards.
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This article is commentary by an independent contributor. At the time of publication, the author held no positions in the stocks mentioned.