On a positive day for markets, when the S&P 500 rose 1.2%, Tenable (TENB +1.85%) stock soared. Investors bid the cybersecurity stock higher after learning that the company had received an important security certification from the United States government.
Shares of Tenable closed 11% higher today from where they ended Friday's trading session.
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A new milestone translates to new opportunities
Tenable reported today that its Tenable One Cloud Exposure, a cybersecurity solution that identifies and reduces security risks across multi‑cloud and hybrid cloud environments, has achieved Federal Risk and Authorization Management Program (FedRAMP) High and Impact Level (IL) 5 authorization, a rigorous U.S. government security certification.
NASDAQ: TENB
Key Data Points
In addition to the Department of Defense, the company believes that achieving this milestone opens the door to opportunities with other highly sensitive federal use cases, such as intelligence agencies. Furthermore, the company acknowledges in the related press release that the authorization "enables Tenable to support new mission-critical use cases, including classified and tactical edge deployments, and offers a clear competitive advantage in the federal space."
What's an investor to do now?
With the company gaining broader access to federal cloud contracts through its new FedRAMP certification, Tenable's growth potential has increased; thus, investors interested in cybersecurity stocks have a more appealing option through Tenable stock. And with shares of Tenable trading at 16.9 times operating cash flow, a discount to their five-year average cash flow multiple of 37.3, Tenable stock appears even more attractive, hanging on the discount rack.
