Varonis, A Cybersecurity Stock, Hacks Into New Buy Zone

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Cybersecurity stocks like SailPoint Technologies (SAIL), CrowdStrike (CRWD), Palo Alto Networks (PANW) and Zscaler (ZS) are testing and fortifying new highs. Now threat detection and data security firm Varonis Systems (VRNS) has joined the IBD Breakout Stocks Index, launching a move of its own.


Along with fellow cloud stocks Dropbox (DBX) and Box (BOX), Veronis is in database software industry group. The industry ranks No. 54 among the 197 groups IBD tracks. SailPoint, CrowdStrike, Palo Alto Networks and Zscaler are in the No. 116-ranked software security group.

Focused on protecting enterprise data, Varonis fights a different battle than some conventional cybersecurity companies. The Varonis Data Security Platform detects insider threats and cyberattacks by analyzing data, account activity and user behavior.

Using AI technology and machine learning, Varonis protects sensitive financial and personal information, emails and other intellectual property. The New York-based company supports clients in sectors including finance, health care, insurance, energy and utilities, retail, media, entertainment and education.

Operating in over 150 countries and territories, Varonis has over 7,000 clients and more than 1,000 employees.

Who Joins Varonis On The IBD Breakout Stocks Index?

Varonis Buys Polaryze To Expland Cloud Infrastructure

In October, Varonis acquired Polyrize, aiming to expand the Varonis Data Security Platform to cover additional cloud applications and infrastructure.

Polyrize provides software that maps and analyzes the relationships between users and data across cloud applications and services, including Google Suite from Alphabet (GOOGL).

Other cloud and cybersecurity partners include (CRM), Okta (OKTA), Slack (WORK) and (AMZN).

Polyrize enables security teams to control access to cloud data and infrastructure and analyze cloud activity.

Varonis Hacks Into New Breakout

After four quarters of declining sales growth, Varonis has posted two quarters of accelerating revenue gains. Sales have climbed from a 4% decline in Q1 to a 17% increase in Q3.

Earning growth is also moving in the right direction. After five quarters of losses, Varonis has moved toward profitability in its latest report. From a year-ago loss of 16 cents a share, the company posted a third-quarter profit of 6 cents a share. It was the first profit in seven quarters.

With its relative strength line already reaching a new 52-week high, Varonis cleared a 138.85 buy point on Dec. 14. Volume rose on the breakout, coming in 39% above average. Varonis added to its gains Tuesday.

Early Wednesday,the stock has jumped higher, becoming slightly extended past the buy zone, which extends up to 5% above the initial buy point.

IBD Breakout Opportunities ETF

The IBD Breakout Opportunities ETF (BOUT) from Innovator Capital Management tracks the IBD Breakout Stocks Index. As with other index ETFs, this allows you to essentially invest in the entire index in addition to or rather than buying individual stocks. Learn more about the ETF and Innovator funds.

Follow Matthew Galgani on Twitter at @IBD_MGalgani.


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