Assessing Qualys (QLYS) Valuation After Recent Modest Pullback in a Shifting Security Software Landscape

Qualys (QLYS) has seen its stock slip about 1% over the past week, following a three-month decline of nearly 13%. Investors might be asking what’s next as Qualys looks to gain stability in a competitive software security landscape.

See our latest analysis for Qualys.

While Qualys has faced a moderate pullback recently, that comes after a year of total shareholder return near break-even. This reflects a period where positive momentum has faded and the market is weighing growth expectations against a shifting security software landscape.

If you want to expand your search beyond Qualys, it could be a smart move to explore fast growing stocks with high insider ownership.

With shares trading around 8% below analyst targets and recent growth appearing modest, the key question for investors is whether Qualys is undervalued at current levels or if the market has already factored in its future prospects.

Most Popular Narrative: 7% Undervalued

With Qualys closing at $130.78, the most widely followed narrative places its fair value much higher, suggesting today's investors may be missing something big. Let's look at one of the key reasons this valuation stands apart from the market's cautious tone.

Adoption of Qualys' new cloud-native risk operations center (ROC) and Agentic AI platform positions the company as a leading pre-breach risk management provider, offering unified orchestration, automation, and remediation across both Qualys and non-Qualys data. This opens incremental greenfield opportunities and should support higher ARPU and expanded TAM, leading to durable revenue and earnings growth.

Read the complete narrative.

There is a disruptive growth play shaping this valuation. What if a new platform is the lever for dominating emerging cybersecurity budgets? Uncover which bold financial moves this narrative thinks will fuel the next chapter for Qualys.

Result: Fair Value of $141.02 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, rapid shifts in AI security or customer consolidation with larger platforms could present challenges to Qualys’ growth assumptions and threaten its market position.

Find out about the key risks to this Qualys narrative.

Build Your Own Qualys Narrative

If you prefer your own approach or want to dive deeper into the data behind these conclusions, you can craft your own perspective in just a few minutes using our toolkit. Explore insights, review valuation, and truly make it yours with Do it your way.

A great starting point for your Qualys research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.

Looking for More Investment Ideas?

Don't wait on the sidelines. The next big opportunity could be right around the corner, and it pays to look beyond just one company for your portfolio.

• Capture upside in emerging healthcare AI by tapping into these 31 healthcare AI stocks, where medical innovation intersects with artificial intelligence to transform patient outcomes and efficiencies.
• Amplify your returns by targeting these 19 dividend stocks with yields > 3%, featuring companies with robust yields over 3% that reward you as a shareholder while you watch your investments grow.
• Accelerate your search for untapped opportunities in high-potential markets through these 3568 penny stocks with strong financials, and uncover fast-moving stocks with the fundamentals to match.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com