Check Out These 5 Cybersecurity Stocks In The Stock Market Today
The increasing digitalization by companies worldwide has put cybersecurity stocks on many investors’ radar. The ongoing pandemic saw many companies accelerating their digital transformation process. According to Gartner, security and risk management spending grew 6.4% in 2020. And this year the segment continues to grow at an above-average rate. In detail, Gartner estimates global spending on information security and risk management services will top $150 billion.
With the growing cybersecurity risks, it’s understandable why many companies are now willing to ramp up their spending in this space. Thus, it’s safe to say that a list of top cybersecurity stocks could stand to gain from this secular trend. And it is not just companies. The Congress has also agreed to more than $500 million in funding for cybersecurity under the Democrats’ social spending and climate plan.
From high profile events, for instance hackers using a vulnerability in SolarWinds (NYSE: SWI) software to breach a number of U.S. government agencies to the phishing emails we get, cyber risks are here to stay. With all that being said, do you have this list of top cybersecurity stocks to buy in the stock market now?
Best Cybersecurity Stocks to Watch in November 2021
- Cloudflare, Inc. (NYSE:NET)
- Palo Alto Networks, Inc. (NASDAQ: PANW)
- CrowdStrike Holdings, Inc. (NASDAQ: CRWD)
- SentinelOne (NYSE: S)
- Fortinet, Inc. (NASDAQ: FTNT)
Cloudflare is a web infrastructure and website security solutions provider. The company primarily offers content delivery network and DDoS mitigation services. In essence, the company acts as a mediator between website visitors and businesses. Notably, the importance of Cloudflare’s services as client interactions in the digital space increase should not be overlooked. There’s no getting around the fact that NET stock trades at a high valuation. With the dip in the stock this week, could it be a good time for investors to buy the dip?
From its third fiscal quarter, the company posted a total revenue of $172.3 million. This marks a solid year-over-year surge of 51%. Throughout the quarter, Cloudflare also saw strong large customer growth. In detail, it added a record 170 large customers to its client list during the quarter, a 71% year-over-year increase. The likes of which are essentially contributing upwards of $100,000 in annualized sales each. Given Cloudflare’s strong fundamentals in its third quarter, will you consider adding NET stock to your portfolio after its recent dip?
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Palo Alto Networks
Palo Alto Networks is committed to addressing the world’s greatest cybersecurity challenges with its prowess in AI, analytics, automation, and orchestration. Last week, the company announced its Cortex eXtended Managed Detection and Response (XMDR) Partner Specialization. Building on the demand for its pioneering Cortex XDR 3.0, the Cortex XMDR Specialization will enable MSSP partners to combine Cortex XDR with their managed services offerings. Thus, helping customers worldwide streamline security operations center (SOC) operations and quickly mitigate cyberthreats.
Earlier this month, the company also announced that it is partnering with German multinational conglomerate Siemens AG in a bid to enhance the security of mission-critical networks and prevent the threat of cyber-attacks on critical infrastructure. From Palo Alto’s latest quarterly result, revenue rose to $1.25 billion, up from $946 million in the prior year quarter. The company’s strong quarterly performance reflects its sustained focus on product innovation, a shift in the business model to subscription-based services, platform integration and continued investments in the go-to-market strategy. Keeping this in mind, would PANW stock make your list of top cybersecurity stocks to buy now?
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At only a decade old, CrowdStrike is one of the younger cybersecurity firms on this list. The company launched its first product in 2013, called the Falcon. For those unfamiliar, the product provides endpoint protection, threat intelligence and attribution. The company offers a holistic cybersecurity plan, from its top-of-the-line cloud workload and endpoint security to its threat intelligence and cyber-attack response services. The company attracted the bulls by disrupting the cybersecurity space with its cloud-native services.
Over the past year, CRWD stock has risen by over 50%. Nevertheless, the company is not resting on its laurels. Earlier this month, it announced Falcon Horizon support for Google Cloud environments. With that, CrowdStrike extended its Cloud Security Posture Management solution to protect the three largest cloud providers. With the company reporting its third-quarter earnings on December 1, would you be watching CRWD stock now?
CrowdStrike isn’t the market’s only cloud-based security company. SentinelOne, which provides a mixture of on-site and cloud-based services, claims its hybrid approach is superior to CrowdStrike’s cloud-only platform. In brief, SentinelOne runs the Singularity XDR platform, which promises autonomous security that prevents, detects, and neutralizes cyber threats.
Since going public in June 2021, S stock has risen by more than 80% from its initial public offering price. Earlier this month, the company announced the SentinelOne App for Azure Active Directory (Azure AD). This is a new solution combining endpoint security and identity capabilities to advance Zero Trust architecture. From its second fiscal quarter, the company was able to grow its revenue by more than 120% year-over-year. In addition, its total customer count also grew more than 75% year-over-year to 54,000 customers. Given its strong momentum, would you buy S stock ahead of its third-quarter earnings on December 7?
Fortinet develops and sells products including firewalls, anti-spam and anti-virus software, as well as a threat-detection program that uses artificial intelligence (AI). One of its most known products is the FortiGate Next-generation Firewalls. The product was designed to deliver advanced security and threat protection, while also enabling the network to scale and change without compromising security operations. In addition, the company also pledged to become carbon neutral by 2030. Its co-founder and CEO Ken Xie said that this will be achievable through the use of renewable energy, energy and carbon efficiency methodologies.
From its latest quarter, revenue came in 33% higher to $867 million. Furthermore, the company notched a 19% year-over-year increase in sales during the same quarter. Fortinet estimated that it will record $955 million in revenue by the end of the year. In the long run, Xie sees the total addressable market for network security rapidly growing. As a result, Fortinet remains focused on leveraging its current momentum to drive long-term growth. All in all, would you consider FTNT stock a top cybersecurity stock to invest in?