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Yahoo
4 days ago
- Business
- Yahoo
Trend Micro and IGP Photonics have been highlighted as Zacks Bull and Bear of the Day
Chicago, IL – June 4, 2025 – Zacks Equity Research shares Trend Micro TMICY as the Bull of the Day and IGP Photonics IPGP as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Broadcom AVGO. Here is a synopsis of all three stocks. Trend Micro has joined the growing number of cybersecurity stocks that have gained traction, including CrowdStrike, CyberArk Software, Palo Alto Networks and Zscaler. Outside of Zscaler, Trend Micro has outperformed most of its popular cybersecurity peers this year and is sitting on gains of over +40%. Offering endpoint, messaging, and web security software, what further separates Trend Micro is its more reasonable valuation, although the growth of these popular cybersecurity firms is starting to justify their premiums to the broader market. That said, Trend Micro's strong financial results and strategic growth initiatives are very compelling, with TMICY sporting a Zacks Rank #1 (Strong Buy) and landing the Bull of the Day. At the forefront of Trend Micro's expansion is its Vision One unified cybersecurity platform, which is designed to provide advanced threat detection, risk management, and security automation across multiple environments for the enterprise. Simplifying security operations for businesses while providing proactive risk management, Trend Micro serves over 10,000 large enterprise customers worldwide, with Vision One being widely adopted by financial institutions, healthcare organizations, and government agencies. Highlighted as a leading XDR platform (Extended Detection and Response), enterprises have flocked to Trend Vision One because of the platform's ability to adapt to AI-driven threats, using machine learning to detect and respond to sophisticated cyberattacks. It's also noteworthy that Vision One protects cloud-native applications and digital workloads, putting Trend Micro in a prime position to compete with Palo Alto Networks, Zscaler, and other cloud security leaders. Also contributing to Trend Micro's expansion is that it has multiple partnerships across various industries, including with cloud providers, other cybersecurity firms, and managed service providers: Microsoft – Integrates Trend Micro's security solutions with Azure for enhanced cloud protection. Amazon's AWS – Collaborates on cloud security and threat intelligence for AWS customers. Alphabet's Google Cloud – Works together on AI-driven cybersecurity and cloud-native security solutions. Cisco Systems – Partners on network security and endpoint protection. VMware – Provides virtualization security for VMware environments. Outside of traditional cybersecurity for the enterprise, Trend Micro's Scam Check Tool had 16,000 active users during Q1, boosting its consumer revenue by 14% from the prior year quarter. Based on Zacks' estimates, Trend Micro's total sales are expected to be up 10% in fiscal 2025 and are projected to rise another 6% in FY26 to $2.11 billion. Notably, FY26 sales projections would represent 22% growth over the last five years, with Trend Micro's top line more than doubling over the last decade in correlation with the need to combat the rising number of cyber threats. Most suggestive of more upside in Trend Micro stock is that FY25 and FY26 EPS estimates are up over 3% and 7% in the last 30 days, respectively. Trend Micro's annual earnings are now expected to spike 30% this year to $2.05 per share, versus EPS of $1.57 in 2024. Plus, FY26 EPS is projected to rise another 16%. Making the positive EPS revisions very enticing is that TMICY trades at 37.4X forward earnings, with the next cheapest P/E valuation among its afore-noted cybersecurity peers being Zscaler at 95.5X. In terms of price to sales, Trend Micro also stands out with a forward P/S ratio of 5.4X, which is near the S&P 500 with CrowdStrike, CyberArk, Palo Alto, and Zscaler all trading at a least 14X or more. While many cybersecurity stocks are intriguing at the moment, investors who may be keeping their risk tolerance in mind could be more comfortable selecting Trend Micro. With its consumer business expansion supporting the growth of the popular Trend Vision One platform, more upside for TMICY looks justified at current levels when considering the premium investors are paying for cybersecurity stocks. Falling 30% year to date, the trend of declining earnings estimate revisions points to more downside risk for IGP Photonics stock. After much hype in recent years, investor sentiment has diminished for the laser systems and components provider due to shrinking operating margins amid lower demand for materials processing products. To that point, IPGP has fallen mightily from its all-time peaks of over $200 a share, and unfortunately, the slide could continue as IPG's stock lands a Zacks Rank #5 (Strong Sell) and the Bear of the Day. Although IPG was able to exceed its Q1 expectations in early May, sales fell 9% from the comparative quarter to $227.79 million. More concerning, earnings dropped 40% to $0.31 a share from EPS of $0.52 in Q1 2024. Attributing to the top and bottom-line decline were tariff-related costs, which have reduced demand for material product applications that rely heavily on IPG's high-performance lasers. Furthermore, IPG warned that tariff-related delays could slow shipments and further impact its profit margins. Leading to much anguish, IPG expects Q2 EPS between $0.05-$0.25 versus $0.45 a share in the prior period, with sales expected at $210-$240 million compared to $257 million a year ago. Correlating with softer-than-expected guidance, earnings estimate revisions have continued to decline for IPG. Notably, fiscal 2025 and FY26 EPS estimates have now dropped over 37% in the last 60 days, respectively. Making the trend of declining EPS revisions harder to bear is that IPG's stock still trades at an overly stretched premium to the broader market at 63.6X forward earnings. It's also noteworthy that IPGP is trading near its decade-long high in terms of price to forward earnings and is 177% above its median of 25.7X during this period. There are many signs that point to it being time to sell IPG Photonics stock, with IPGP having an overall 'F' VGM Zacks Style Scores grade for the combination of Value, Growth, and Momentum. Ultimately, investing in the company's unique laser services is not worth it right now. Zacks Thematic Screens lets you dive into 30 dynamic investment themes shaping the future. Whether you're interested in cutting-edge technology, renewable energy, or healthcare innovations, our themes help you invest in ideas that matter to you. Let's take a closer look at the Artificial Intelligence theme and analyze a top-ranked stock that the screen returned, such as Broadcom. This screen features diverse companies involved in AI, ranging from creators of software and hardware that power AI to those applying and utilizing this technology through automation, diagnostics, cognitive tasks, and more. Artificial Intelligence (AI) refers to the technology that enables computers and machines to simulate human intelligence and problem-solving capabilities to perform the cognitive functions usually associated with human minds. In general, AI systems work by ingesting large amounts of data with fast, iterative processing and intelligent algorithms. It then analyzes the data using neural networks for correlations and patterns and allows the software to learn automatically from these patterns to make predictions. Broadcom is evolving a broad portfolio of technologies to extend its leadership in enabling next-generation AI infrastructure. This includes foundational technologies and advanced packaging capabilities aimed at building the highest performance, lowest power custom AI accelerators. AVGO stock currently sports a favorable Zacks Rank #2 (Buy), with its earnings outlook shifting bullishly for its current fiscal year. Its recent set of quarterly results brought several positives, with AI revenue of $4.1 billion melting 77% higher year-over-year. The quarter's results were driven by robust demand for its AI solutions, with the company forecasting AI semiconductor revenue of $4.4 billion for Q2. Keep in mind that the stock is set to report quarterly results this week, with current consensus expectations indicating 42% year-over-year EPS growth on 20% higher sales. The company's sales have remained strong over recent periods thanks to the above-mentioned AI frenzy, as shown below. Zacks Thematic Screens lets you dive into 30 dynamic investment themes shaping the future. Whether you're interested in cutting-edge technology, renewable energy, or healthcare innovations, our themes help you invest in ideas that matter to you. Upon running the Zacks Artificial Intelligence Thematic screen, top-ranked Broadcom was returned. For those interested in viewing all the Thematic lists, please click here >>> Thematic Screens – Zacks Investment Research. Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year. Today you can access their live picks without cost or obligation. See Stocks Free >> Media Contact Zacks Investment Research 800-767-3771 ext. 9339 provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. Past performance is no guarantee of future results. Inherent in any investment is the potential for material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged for information about the performance numbers displayed in this press release. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Broadcom Inc. (AVGO) : Free Stock Analysis Report Trend Micro Inc. (TMICY) : Free Stock Analysis Report IPG Photonics Corporation (IPGP) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Techday NZ
05-05-2025
- Business
- Techday NZ
Trend Micro launches AI threat detection for enterprise security
Trend Micro has introduced new AI-powered threat detection capabilities aimed at enterprises scaling up their AI operations. The new solution has been developed to protect AI-driven workloads and enterprise business processes, managing risks associated with the transition from generative AI to agentic AI, such as data theft, sabotage, and operational disruption. Trend Micro's latest offering brings together its security expertise with NVIDIA's accelerated computing and AI enterprise software, while deploying on AWS's secure, cloud-native infrastructure. The integration is intended to enable real-time, scalable threat detection and protection for organisations with expanding AI footprints. The AI Detection Model at the core of this development leverages the NVIDIA Morpheus AI framework, which is part of NVIDIA AI Enterprise. The detection model operates on the high-performance cloud environment provided by AWS, allowing rapid and precise analysis of vast enterprise data streams. According to Trend Micro, AWS was selected for its global reach, integrated security, and compliance-oriented architecture, while NVIDIA's technology contributes the computational capacity necessary for running advanced detection models with high efficiency. Chris Grusz, Managing Director, Technology Partnerships for AWS, said, "Built on AWS's cloud-native infrastructure, Trend's platform takes full advantage of NVIDIA AI software and accelerated computing capabilities to power scalable, low-latency threat detection. With AWS's global footprint and integrated services, Trend can securely process telemetry at scale, adapt detection models to evolving threats, and support customers worldwide—all while accelerating time to value." The wider Trend Vision One platform also integrates AWS AI services, including Amazon Bedrock, which supports Workbench Insights. These components are designed to improve investigation workflows and deliver additional context to security operations centre (SOC) teams during incident response situations. Mick McCluney, ANZ Field CTO at Trend, commented, "AI is reshaping the enterprise, and security has to evolve just as fast. We're bringing together best-in-class partners in both cloud and AI to deliver something truly differentiated. AWS's secure and resilient infrastructure gives us the scale, performance, and global availability needed to meet the always-on demands of today's enterprises. So our customers can detect and respond to threats faster, with confidence." The anomaly detection capability within the solution employs AI models based on NVIDIA Morpheus. This allows the system to identify novel patterns in large streams of telemetry data and logs. The implementation on AWS enables the platform to scale effectively, managing extensive datasets and rapidly building custom detection models for individual customers. This approach seeks to prioritise the most critical events and prompt faster security responses. Key features of the technology include NVIDIA Morpheus Digital Fingerprinting, which identifies subtle, previously unknown anomalies. There is also the use of NVIDIA RAPIDS to expedite large-scale data classification, enhancing real-time detection and prevention of sensitive information leaks. The platform's native operation on AWS allows it to leverage the elasticity, global reach, and inherent security of AWS services, supporting ongoing advancements in AI-enabled detection while meeting enterprise compliance and performance benchmarks. Robert Miller, VP of Corporate Security at Sierra-Cedar, highlighted the practical benefits of the solution: "We're dealing with an increasingly complex environment with more data. Trend stands out as it doesn't just provide threat intelligence, it helps make sense of it. Our team can access Trend's AI-powered platform directly via AWS Marketplace, streamlining procurement and deployment across global cloud environments. This powerful combination allows us to strengthen our security posture and identify threats much faster than we could manually." The introduction of these new AI-powered threat detection capabilities is positioned to address the rapidly evolving landscape of enterprise cybersecurity as organisations integrate artificial intelligence deeper into their operations.
