SailPoint Technologies (SAIL)

A cybersecurity stock that's fallen 30% since February highs. Part of this was due to rotation out of tech stocks, partly from competition. They're switching from an old-school license model to a modern service model. This can be a bumpy transition, though it's usually a good move long-term. Earnings can be confusing. Two weeks ago, investors were turned off by their imperfect numbers and a cut in full-year forecasts. SAIL now says the most important metric is their annual recurring revenue, up 43% YOY. It's now up 2% since that report.

This cybersecurity company has seen business boom in the last year as companies embraced remote work and vulnerabilities in their network. They use A.I. to ensure the right people access the right data. It started transitioning to a cloud-based services model. They reported a strong quarter last week in their 13th straight top and bottom line beat. Annual recurring revenues are up 40% YOU.