3 Top Cybersecurity Stocks To Watch Right Now
Cybersecurity stocks have been a popular theme in the stock market over the past few years. This would naturally be the case as more companies are utilizing the cloud for their operations. A company suffering from a cyber-attack may not only lose important information, but could also see impacts on productivity. For instance, earlier this week, Toyota (NYSE: TM) had to halt its factories for a day. This came after a cyberattack on a supplier of plastic parts and electronic components. Meanwhile, the ongoing war between Russia and Ukraine is not just taking place on the physical front. Russia has reportedly unleashed data-wiper malware on Ukraine’s government systems. As such, there is now a renewed interest in the cybersecurity space on fears that cyberattacks may hit other countries.
Putting that aside, even Fortinet (NASDAQ: FTNT) reported that ransomware is not slowing down but it continues to be relentless. Its latest semiannual FortiGuard Labs Global Threat Landscape Report reveals that there is an increase in the automation and speed of attacks. Therefore, cybersecurity companies are constantly improving their services to provide the best protection for their customers. We saw Radware (NASDAQ: RDWR) extending its state-of-the-art cloud application security offering by adding fully automated API discovery capabilities last week. These would enable security teams to automatically secure undocumented APIs without human intervention. With all these in mind, do you have this list of 3 of the top cybersecurity stocks in the stock market today?
Cybersecurity Stocks To Watch In March 2022
- Crowdstrike Holdings Inc (NASDAQ: CRWD)
- Palo Alto Networks Inc (NASDAQ: PANW)
- Zscaler Inc (NASDAQ: ZS)
Crowdstrike
CrowdStrike is a company that provides cloud-delivered solutions for endpoint and cloud workload protection around the world. The company offers its Falcon platform through a software as a service subscription-based model that covers various security markets. This includes corporate endpoint security, cloud security, managed security services, and others. CRWD stock has been gaining traction among investors, climbing more than 15% over the past 5 trading days.
Now, could this be due to investors anticipating a strong performance in its upcoming fourth-quarter financial results on March 9, 2022? To recap, CrowdStrike did just come off a strong third quarter with broad-based strength across multiple areas of its business. During the previous quarter, it posted total revenue of $380.1 million, up 63% compared to the prior year’s quarter. Not to mention, its annual recurring revenue grew by 67% year-over-year, surpassing the $1.5 billion milestone set by the company. Safe to say, these outstanding results demonstrate the flywheel effect of its platform and reflect the rising adoption of its core products.
On top of that, CrowdStrike recently announced the general availability of its Falcon XDR module. This would be an extension of its industry-leading endpoint detection and response capabilities to improve threat visibility across the enterprise. Additionally, it would simplify security operations and dramatically speed up response time, and remediation of the most sophisticated attacks. Falcon XDR will play a significant role by correlating weak, siloed threat signals into prioritized alerts for security teams. Thus, would you consider adding CRWD stock to your watchlist ahead of its earnings report next week?
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Palo Alto Networks
Another favorite among investors in the cybersecurity industry today would be Palo Alto Networks. Essentially, it is a multinational cybersecurity company that continues to shape the cloud-centric future with its technology. Its mission is to be the cybersecurity partner of choice and to protect its digital way of life. The company also addresses the world’s greatest security challenges with continuous innovation that seizes the latest breakthroughs in artificial intelligence, analytics, and automation. PANW stock has been going strong over the past year, rising more than 50% during this period. This comes at a time when many tech stocks have been under pressure.
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. Also, billings for the quarter were $1.6 billion, representing an increase of 32% year-over-year. In light of this, Palo Alto announced that it will be raising its guidance for the fiscal year 2022. Thus, it may be no surprise why investors are bullish on PANW stock.
In addition, Palo Alto has stepped up to the plate to solve a challenge faced by managed service providers to deliver secure access service edge (SASE) services at an effective cost at scale. The company recently introduced innovations for Prisma SASE, including a hierarchical multi-tenant cloud management portal and an open API framework. Thus, it will provide the flexibility to manage multiple customers with different needs while providing control across a customer’s entire SASE services lifecycle. Given these positive developments, would you buy into the future of PANW stock as cybersecurity needs continue to rise?
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Zscaler
Similar to the other entries, Zscaler is a cybersecurity company that focuses on cloud security. Its platform is designed on a zero-trust architecture, allowing users and devices to safely access authorized applications and services in the cloud using the Internet. Some of its cloud services would include Zscaler Internet Access, Zscaler Private Access, and Zscaler Digital Experience. Even though ZS stock has been trading sideways for most of the past year, it has still risen by over 15% during this period.
What’s more, there are still plenty of positive developments that could sustain this momentum. For starters, Zscaler was recognized as a Leader in the inaugural Gartner 2022 Magic Quadrant for Security Service Edge in February. This marks the 11th consecutive year that the company has been named a Leader. Well, this is a testament to the company’s ability to deliver at the highest level. Also, this is a recognition that acknowledges the Zscaler Zero Trust Exchange as the foundation for secure digital transformation.
Furthermore, the company also recently announced its fiscal second-quarter financials. It raked in revenue of $255.6 million, up by 63% compared to the prior year’s quarter and beating most analysts’ expectations. Meanwhile, its calculated billings also grew by 59% to $367.7 million. The company CEO Jay Chaudry also added, “The importance of our Zero Trust Exchange architecture has never been clearer to customers undertaking digital transformation.” All in all, would you be watching ZS stock?
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