Are These Top Cybersecurity Stocks On Your Watchlist?
Online attacks have contributed to the rise of cybersecurity stocks. Since the coronavirus pandemic, many companies require employees to work from home. But implementing the change has opened the door to security attacks. As a result, the workplace changes have spurred investors looking for the best cybersecurity stocks to buy. This is getting increasingly prominent as this is an invisible threat to business operations.
So, why should we focus on cybersecurity stocks? Because data hacks have simply kept happening, all the time. Another day, another hack? We see breaches of personal and financial information on hundreds of millions of accounts. Some commentators suggest that pretty much all of us are victims of hacking or data leak. It is just that we didn’t realize it. Even popular video-conferencing Zoom (ZM Stock Report) has been a victim of data leak affecting the personal information of at least thousands of users. That said, Zoom was also prone to hackers spying on conversations and stealing confidential information. That was until the company released a new security update to fence off all the cyber attacks.
These hacks have been happening and show no signs of abating. Enterprises have increasingly been investing in building cybersecurity infrastructure to protect customer’s info and data. Which many would agree that it is highly valuable in today’s increasing digitized economy. This especially true in times of geopolitical tensions, where cyber attacks have been used for reasons beyond financial motives.
Best Cybersecurity Stocks To Buy [Or Avoid]: CrowdStrike Holdings Inc.
Since the coronavirus-led market sell-off in March, CrowdStrike Holdings Inc. (CRWD Stock Report) stock price has gone up nearly 180%. This is not surprising, though, as Crowdstike had been posting excellent revenue growth. During its latest fiscal year report ending on January 31, revenue jumped 93% year over year to $481.4 million. Thanks to its simplicity and efficiency of its cloud-based endpoint security solution. The technology consists of a piece of software that protects computers and mobile devices by leveraging cloud-based threat detection.
The company reported its first quarter of its fiscal 2021 on June 2nd. Total revenue recorded was $178.1 million, an 85% increase compared to $96.1 million the same period a year ago. In the latest quarter, the company added 830 net new subscription customers in the quarter. That brought the total number of subscription customers to 6,261 as of April 30, 2020. This represents 105% growth year-over-year. With a healthy level of assets and no debt, CrowdStrike can sustain many years of losses. This enables the company to continue funding its growth through sales and marketing efforts. The company will also not have any sustainability issues if a prolonged recession materializes. With all that in mind, is it still time to buy CrowdStrike stock after its recent rally?
Best Cybersecurity Stocks To Buy [Or Avoid]: Qualys Inc.
Qualys Inc. (QLYS Stock Report) provides cloud security, vulnerability management, detection, and related services to enterprises. QLYS stock bottomed out at $68 in March, then climbed 67% to $113.84 as of June 2nd. The company posted modest revenue growth of 14.5% year over year, reaching $86.3 million in the first quarter ended March 31. Non-GAAP earnings per share were $0.65, an increase from $0.49 the same quarter a year ago.
There’s no recent event that is causing QLYS stock to keep climbing. It could simply be the fact that investors are now having more awareness and knowledge on the cybersecurity space. This in turn leads investors in looking for the best cybersecurity stocks to buy. The company also has a partnership with Microsoft in establishing vulnerability management and container security solutions directly into Microsoft Azure Security Center. This could be a catalyst for QLYS stock to perform in the long run.
Best Cybersecurity Stocks To Buy [Or Avoid]: Zscaler Inc.
Last but not least, Zscaler Inc. (ZS Stock Report) is a cloud security company providing web security, firewalls, sandboxing, antivirus, and vulnerability management to enterprises. Just a few months ago, Zscaler reported a more than respectable 37% year over year increase in sales. Billings increased 55% year over year to $131.3 million. The company saw non-GAAP earnings per share of $0.07 compared to $0.05 per share in the same quarter last year.
The company’s aggressive strategy proved to be hitting it at the right spot. When much of the world went on lockdown, Zscaler recorded a strong revenue stream when companies opted for cybersecurity solutions since the global workforce started working from home. Given its history of under-promising and over-delivering, investors shouldn’t be surprised to see the company continuing to enjoy higher revenue. After all, the world is preparing for the ‘new normal’ economy. All things considered, working-from-home and higher usage of cloud isn’t fading anytime soon, and these significantly benefit cybersecurity firms. With that in mind, could ZS stock be a good buy now?