Stephen Simpson, CFA
Long only, growth at reasonable price, value, research analyst

Sourcefire's Risk-Reward Seems A Little Out Of Whack

Growing tech stocks rarely look cheap by conventional metrics, and Sourcefire (NASDAQ:FIRE) has been an all-too-rare beat-and-raise grower even through this slowdown in enterprise IT spending. Relative to the opportunities and valuations at other security players like Cisco (NASDAQ:CSCO), Check Point (NASDAQ:CHKP), Fortinet (NASDAQ:FTNT), and Palo Alto (NYSE:PANW), though, it's not so clear that Sourcefire is a major bargain at today's prices. Although the potential addressable market would indeed likely support strong revenue growth and the company's technology could make it an acquisition target, I'm not sure Sourcefire should have this sort of relative valuation.

Good Growth In A Tough Time

The fourth quarter of 2012 was a pretty tough...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
FREESA PRO MEMBERS
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details