Amid Russia Attack, Cybersecurity Stocks Gain

AMD and Airbnb are set to post earnings after the closing bell today. Ukraine makes some gains against Russia, it’s the day of awareness for missing and murdered Indigenous women and more news to start your Thursday. French ballet star Laurent Hilaire was named director of one of Germany’s top dance companies on Thursday, two months after he resigned from Moscow’s Stanislavski Theatre over the Russian invasion of Ukraine. Cuban’s views came to light after chief operating officer at a cryptocurrency company he backed was fired for résumé lies. Unlike many of Russia’s notable oligarchs, he has not been sanctioned by the United States or the European Union for his closeness to President Vladimir Putin. And as Western companies quit Russia because of those sanctions, imposed as retaliation for Moscow’s invasion of Ukraine, he has snapped up assets to expand his own banking business.

  • Each of these stocks can provide significant exposure to some great growth opportunities in cybersecurity, and they’re all accessible to portfolios of just about any size.
  • The company beat expectations on revenue, billings and earnings per share, according to William Blair analyst Jonathan Ho.
  • CrowdStrike’s software uses machine learning to detect security breaches and hunt down threats.
  • In addition to momentum strength, RPD has excellent growth grades and a customer base that continues to grow.
  • Average price targets and analyst ratings provided by market data toolKoyfin.
  • S’ subscription tiers include Singularity Core, Singularity Control, and Singularity Complete.

In 2021, Fortinet’s revenue was $3.34 billion, an increase of 28.82% compared to the previous year’s $2.59 billion. The use of the term “advisor” throughout this site shall refer to both investment and broker dealers as a collective term. I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours.

Cybersecurity Stocks Are A Popular Long

Note that the companies on our list are primarily pure-play cybersecurity companies, while CIBR includes a wider variety of related stocks in its portfolio. Cybersecurity companies provide services to protect electronic information from theft or damage. Businesses in the cybersecurity industry utilize both software and hardware to ensure that computing devices and data are not misused.

Undervalued cybersecurity stocks

The PEG Ratio is the PE ratio divided by the three-year compound earnings growth rate, and smaller PEG Ratios typically indicate undervalued companies. Akamai has over 325,000 servers distributed over 4,000 points of presence in more than 1,000 cities worldwide. Akamai also has a significant security business, which is integrated with its core web and media businesses to protect its customers from cyber threats. Cyberattacks on corporate and government targets have grown at an alarming rate for years.

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Okta in early 2021 acquired privately held Auth0 in a $6.5 billion, all-stock deal. Also, Okta is expanding into new security markets to take on CyberArk Software and SailPoint. The latter measures sales growth, profit margins and return on equity. The all-encompassing Composite Rating helps investors easily measure the quality of a stock’s fundamental and technical metrics.

In terms of forward Price/Book, S is currently trading at 6.72x, which is 23.3% higher than the 5.45x industry average. In addition, in terms of forward Price/Sales, S is currently trading at 55.25x, which is 1,357.5% higher than the 3.79x industry average. To find good ideas for stocks trading at attractive valuations, visit TipRanks’Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights. 1Q22 revenue is predicted at $125 million to $133 million and for the full year, the company is guiding toward $582 million to $598 million. At the midpoint, these guidance estimates suggest a 15% sequential gain and a 17% full-year gain at the top line.

Undervalued cybersecurity stocks

It is a long-established brand that should increase sales given its Avast acquisition. Norton has also experienced strong momentum over the last year, as evidenced in the below momentum grades. Last week, the company reported its fiscal second-quarter earnings. Its revenue for the quarter improved to $1.3 billion, up 30% year-over-year.

But also more opportunity for the expanding universe of big data stocks helping companies sift through the noise. While Wall Street is largely high on the company, those on the sidelines are largely concerned with price. More value-minded investors might want to wait for cheaper levels before diving in. “We believe Mimecast is one of the premier companies protecting against email-borne threats,” he adds. And since email is at the core of today’s corporate communications, it remains “a large and pervasive threat vector.”

This will enable them to offer these cloud security services on an enterprise level. Although this could be a small risk in the short term, Crowdstrike’s innovative technology means their market share is likely to continue growing. Endpoint security products protect devices like computers and cell phones from cyber attacks.

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Although prices have gone up and down, the cybersecurity sector still offers plenty of potential. NortonLifeLock is a consumer facing cybersecurity company that currently offers excellent value. Their platform is multi-functional, which makes them stand out from other cybersecurity companies. Since Ping offers cloud based products, they’ve been able to adapt to the needs of companies that are working from home. They are one of the only companies in the industry with a strong focus on identity and access management.

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This newly-released report by a top-20 living economist details three investments that are your best bets for income and appreciation for the rest of the year and beyond. “Increased work from home activity drove demand for its FortiGate, FortiClient, FortiToken, and FortiAuthentication solutions,” Ho observed. This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply. New features converge networking and security to further unify SD-WAN, ZTNA, SWG, NGFW, and more, enabling consistent, coordinated security across any network edge at-scale New features converge network…

Undervalued cybersecurity stocks

Fresenius’s businesses include the Helios hospital chain, drugmaker Kabi, medical services firm Vamed and dialysis specialist Fresenius Medical Care . As one of the first companies to develop an enterprise-grade security solution, Fortinet offers its customers an integrated suite of security solutions. These include firewalls, intrusion prevention systems , network access control devices, web application firewalls , email security appliances, and next-generation firewall services. Shares of the cybersecurity stock have been down a lot in the last three months.

Crowdstrike Holdings Nasdaq: Crwd

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The company reported healthy revenue growth of 40 percent year over year, reaching $110.5 million in its fiscal third quarter, which ended April 30. Non-GAAP earnings per share were 7 cents per share, compared to 5 cents per share in the same quarter last year. On May 21, Palo Alto Networks posted strong fiscal third-quarter revenue growth of 20 percent year over year, reaching $869.4 million. The company reported non-GAAP earnings per share of $1.17, compared with $1.31 for the fiscal third quarter of 2019.

Top Cybersecurity Stocks In Cloud Security, Identity Management, And Legacy Security Vendors

They specialize in endpoint security, which is highly sought after right now. This company has posted solid earnings numbers throughout the year. However, they continue to pursue an aggressive growth strategy with acquisitions. They are known for their advanced firewall technology, but are quickly expanding. Both individuals and large corporations are seeing the importance of protecting their digital information. The coronavirus pandemic is changing the way we interact with technology.

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Based on a review of 18 Wall Street analysts, 12 have a buy recommendation for Okta. The company reported strong revenue growth of 46 percent year over year, reaching $182.9 million in the first quarter ended April 30. Non-GAAP net loss per share was 7 cents, compared to 19 cents in the same quarter last year.

The forced remote work policy due to novel coronavirus skyrocketed the cyberthreat and cybercrime rates. Help Net Security published a report, stating that in 2020, malware grew by 358%, whereas ransomware increased by 435%, compared with 2019. The report also suggested that remote work will likely remain the target of cybercrimes in the coming years.

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Marvell Technology Group Ltd. is a tech company and a pioneer in the digital storage industry. It is primarily focused on developing technology for storage, network infrastructure and wireless connectivity solutions. These solutions from Marvell Technology have transformed the enterprise, cloud, automotive, industrial and consumer markets. Adding the four funds’ holdings and removing duplicates leaves a list of 56 stocks that are covered by at least five analysts polled by FactSet and have stock-market capitalizations of at least $1 billion. The ETFMG Prime Cyber Security ETF HACK, +0.78%has $2.04 billion in assets with an expense ratio of 0.60%. The ETF holds 59 stocks in a modified equal-weight scheme, so it isn’t very heavily concentrated.


Of the 21 analysts surveyed by Koyfin who cover this stock, six currently rate it as a Strong Buy, 12 as a Buy and only three as a Hold. That’s enough for Koyfin to consider this stock a Strong Buy, and makes VRNS one of the best cybersecurity stocks in the eyes of the pros. Every so often, a major event reminds investors of the world’s need for better cybersecurity. For instance, at the end of 2020, attackers targeted SolarWinds , which provides software for more than 300,000 customers, from Fortune 500 companies to the federal government. Six months later, a hack of Colonial Pipeline sent gas prices soaring through parts of the United States.

On a Nov. 2 earnings call, CEO Yaki Faitelson announced Q was the first quarter where the company surpassed $100 million in revenue. This is primarily due, he says, to the world becoming even more aware of how important secure data is to doing business today. Fears of cyberattacks are putting these cybersecurity stocks in focus. The average of price targets set by Wall Street analysts indicates a potential upside of 36.6% in PTC Inc. . While the effectiveness of this highly sought-after metric is questionable, the positive trend in earnings estimate revisions might translate into an upside in the stock.

GAAP net income for the year was $94.9 million, or a generous $1.19 per diluted share, compared with $17.8 million last year or 22 cents per share. Sales of security devices are up by a staggering 22.2% in the fourth quarter. As a high-growth segment of the tech industry, cybersecurity offers investors lots of upside in the decade ahead.

Crowdstrike stock currently has a high price tag relative to its revenue growth. As our technologies develop, our cybersecurity tools are going to advance along with them. The COVID-19 pandemic made cybersecurity even more of a necessity for businesses. It feels like new companies are getting into the cyber security game every day. Savvy insurers have their eyes on the cybersecurity market right now, and for good reason.

As it expands cloud-based security services, Microsoft could pressure more industry incumbents, such as Okta, CrowdStrike, and Splunk . You may think the time is right to move into cybersecurity stocks as geopolitical events unfold and acquisitions continue. To benefit from the fast-rising demand for smart mobility, electric cars, and autonomous vehicles, BlackBerry has cybersecurity stocks 2022 increased its focus on developing advanced technological solutions for futuristic vehicles. All its technological solutions for the automotive industry ensure a high level of data and endpoint security, which would be critically important for driverless cars and smart mobility. Like many other successful cybersecurity stocks, Splunk is moving into the cloud space.

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