Do You Have These Cybersecurity Stocks On Your June 2022 Watchlist?
With growing digitalization across various industries in the past couple of years, demand for cybersecurity stocks has been rising in the stock market. This would make sense as various companies and organizations would naturally look to protect their sensitive data from any possible cyber threats. Besides, the rise of cyber breaches has served as a reminder to organizations of the importance of cybersecurity.
A cybersecurity company that investors could be watching right now is Palo Alto Networks (NASDAQ: PANW). The global cybersecurity leader last week announced that Oracle (NYSE: ORCL) has chosen its VM-Series Next-Generation Firewall (NGFW) to power the Oracle Cloud Infrastructure (OCI) Network Firewall. Since 2019, the two have been working together to help its enterprise customers migrate existing or new applications to OCI. And as they do so, they need the best possible security to prevent any threats or breaches. Together, the two provide solutions that its customers need to help secure their cloud adoption journey. With that being said, here are some of the best cybersecurity stocks to check out in the stock market today.
Top Cybersecurity Stocks to Watch Right Now
- Okta Inc. (NASDAQ: OKTA)
- CrowdStrike Holdings Inc. (NASDAQ: CRWD)
- SentinelOne Inc. (NYSE: S)
- Zscaler Inc. (NASDAQ: ZS)
- Cloudflare Inc. (NYSE: NET)
Okta is a cybersecurity company that specializes in personal identity and access management. Through its Okta Identity Cloud platform, the company provides identity management solutions that enable customers to secure their users and connect them to technology and applications. In addition to that, Okta also enables developers to build identity controls across company websites, proprietary applications, and devices.
This past week, Okta posted its financial results for its first quarter ended April 30, 2022. Diving in, Okta saw its total revenue grow by 65% year-over-year to $415 million. Making up a big bulk of its revenue is its Subscriptions, which pulled in $398 million, up by 66% compared to last year. For the second quarter, the company expects total revenue of $428 million to $430 million, representing a growth rate of 36% year-over-year. Considering the strong results, should you buy OKTA stock?
First up, we will be looking at one of the leading cybersecurity companies, CrowdStrike. Essentially, it provides cloud-delivered solutions for endpoint and cloud workload protection around the world. The company’s Falcon platform comes as a software-as-a-service subscription. It covers various security markets such as corporate endpoint security, cloud security, threat intelligence, identity protection, and many more. Despite trading sideways since the start of the year, CRWD stock has picked up some momentum lately.
Last week, the company posted its first-quarter fiscal 2023 financials. CrowdStrike raked in a total revenue of $487.8 million, a 61% increase compared to $302.8 million in the first quarter of fiscal 2022. In particular, subscription revenue rose from $281.2 million to $459.8 million, or a 64% increase year-over-year. In the same earnings letter, CrowdStrike forecasts its total revenue to range from $512.7 million to $516.8 million for the second quarter of the year. As such, should you invest in CRWD stock?
Following that, we will be looking at the cybersecurity company SentinelOne. In detail, the company has developed an artificial intelligence (AI) extended detection and response (XDR) platform to enable autonomous cybersecurity defense. Through its Singularity Platform, it is able to defend against various types of cyberattacks. In detail, the platform ingests, correlates, and queries petabytes of structured and unstructured data from a myriad of external and internal sources in real-time. This past Wednesday, the company posted its earnings for the first quarter of fiscal 2023.
Revenue was reported to be up by 109% from $78.3 million, a massive jump from $37.4 million in the year before. As for its gross margin, SentinelOne reported increased margins of 65% from 51%. CEO Tomer Weingarten shared, “Our Q1 results demonstrate the combination of a robust demand environment for our leading cybersecurity platform and impressive execution across the board. We once again sustained triple-digit growth with significant margin expansion, added a record number of new customers, and exited the quarter with an extremely strong pipeline.” Thus, will you be watching S stock?
Similar to many top cybersecurity companies out there today, Zscaler is a company that specializes in cloud cybersecurity. In short, its platform is designed on a zero-trust architecture that allows users and devices to safely access authorized applications and services in the cloud. Some of its notable cloud services include Zscaler Internet Access, Zscaler Private Access, and Zscaler Digital Experience. As such, its products and services are seeing increasing demand over the years.
Last week, the company reported its third-quarter fiscal 2022 performance. For starters, the company reported a revenue of $286.8 million, a growth of 63% from the same period a year ago. Financials aside, the company’s annual ThreatLabZ research showed that there was up to a 400% increase in Phishing-as-a-Service as the key source of attacks across critical industries and consumers globally. As such, this highlights the urgency for businesses and users to adopt a zero-trust security model. Given this, would you add ZS stock to your watchlist?
Another top name to note in the industry today is Cloudflare. In essence, the company is a global cloud services provider. Cloudflare’s integrated suite of products includes solutions for an organization’s external-facing infrastructure. This includes websites, applications, and application programming interfaces (APIs) to deliver security, performance, and reliability. Therefore, NET stock is often mentioned among the top cybersecurity stocks in the stock market today.
Last month, it announced Cloudflare D1, a simple and instant serverless database. Cloudflare D1 will enable developers to start building database-backed applications using Cloudflare Workers with just a few clicks. Besides, data will be stored close to where users are, providing fast performance without the complexities of managing a traditional database. Accordingly, D1 will also offer instant access to one of the most widely deployed database technologies in the world, SQLite, directly from its Cloudflare Workers. With this piece of news, would you consider investing in NET stock?