From Nasdaq: 2025-06-04 04:00:00

Trend Micro (TMICY) has outperformed other cybersecurity stocks this year, with a +40% gain. The company offers endpoint, messaging, and web security software at a more reasonable valuation compared to its peers. Strong financial results and growth initiatives have earned Trend Micro a Zacks Rank #1.

Trend Micro’s expansion is driven by its Vision One unified cybersecurity platform, which provides advanced threat detection and risk management. The platform is widely adopted by financial institutions, healthcare organizations, and government agencies. It is also recognized as a leading XDR platform for its ability to adapt to AI-driven threats.

Trend Micro has strategic partnerships with Microsoft, Amazon, Google Cloud, Cisco Systems, and VMware, enhancing its cloud security offerings. The company’s consumer business revenue grew by 14% in Q1, with total sales expected to rise by 10% in fiscal 2025 and 6% in FY26.

Positive EPS revisions and a reasonable valuation make Trend Micro stock attractive. FY25 and FY26 EPS estimates have increased, with annual earnings expected to spike by 30% this year. The stock trades at 37.4X forward earnings and has a forward P/S ratio of 5.4X, making it a compelling choice in the cybersecurity sector.

Investors looking for growth potential in cybersecurity stocks should consider Trend Micro. The company’s consumer business expansion, strategic partnerships, and positive EPS revisions position it for further upside. With the rising demand to combat cyber threats, Trend Micro offers a solid investment opportunity.



Read more at Nasdaq: Bull of the Day: Trend Micro (TMICY)