Despite weak corporate consumer spending, the earnings and sales of security software maker McAfee (MFE) remain strong.
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McAfee is the No. 2 company in its space behind Symantec (SYMC), but is gaining, analysts say. One analyst calculated that the amount of McAfee software products pre-loaded on PCs destined for the consumer market increased from 20% to 50% in a year.
The Santa Clara, Calif.-based company has made even bigger strides in the corporate security world. Its revenue grew 23% in 2008 to $945 million. Symantec showed a 6% increase, to $1.7 billion.
Some analysts attribute McAfee's aggressive moves to a new chief executive, David DeWalt, who took over two years ago.
On the consumer side, Symantec has an exclusive pre-load contract with Hewlett-Packard (HPQ). McAfee has lined up Dell (DELL), Toshiba, Lenovo and Acer.
McAfee became only the second stock to make the weekly IBD list of top-performing long-term growth stocks. The bear market has reduced the list, published each week on investors.com, nearly to nothing.
McAfee's steady growth has earned it an EPS Stability Rating of 13.
The stock has formed a cup without handle. It already broke out of an awkward double bottom that formed within the larger pattern.
It gapped up last week on a better-than-expected earnings report.
McAfee earned 57 cents a share, a 33% increase from the year-ago quarter. That was 9 cents better than estimates. Sales rose 21%.
Analysts surveyed by Thomson Reuters forecast 2009 earnings at $2.34, a 16% increase.
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BY KEN HOOVER
Source：Investors.com
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