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Dark Horse IPO Picks: SecureWorks Corp (SCWX)
Secureworks Corp (NASDAQ:SCWX) is one of the few tech companies that has come public this year. Unfortunately, the stock is sitting just a little lower than its $14 IPO price from late April.
But this could be a nice opportunity for investors. As the name implies, Secureworks is a top player in the cybersecurity industry. Yet it is far from a startup. Keep in mind that the company’s roots go back to 1999.
No doubt, this history has been to the advantage of SCWX, which has built a solid platform that serves over 4,300 customers. The company has also been able to keep up a nice growth rate. In the latest quarter, revenues increased by 30% to $103.7 million.
At the heart of the SCWX technology is a sophisticated data analytics engine, which is called the Counter Threat Platform. It provides for real-time monitoring of client apps and data.
In fact, there are key integrations with cloud platforms like Amazon.com, Inc.’s (NASDAQ:AMZN). The main goal for SCWX: to identify threats before they enter a system.
But the end-game could be an M&A exit. Let’s face it, the tech world has had a swirl of dealmaking — and a key category has been security.
More importantly, there are various large operators, like Cisco Systems, Inc. (NASDAQ:CSCO), International Business Machines Corp. (NYSE:IBM) and Microsoft Corporation (NASDAQ:MSFT), that have been quite aggressive in buying up companies lately.
Source: Investor Place