3 Top Cybersecurity Stocks To Check Out This Week
As we kick off September, the broader stock market continues to extend its gains from August. In particular, the tech-heavy Nasdaq composite is on a roll as investors pile on tech stocks and growth stocks. For the most part, the growth story for the industry remains very much unchanged. That is, the world of tech is constantly evolving and with that comes investor hype. Now, a notable section of the industry today would be cybersecurity stocks. This would be the case as data becomes increasingly targeted by cybercriminals in the world today.
For instance, just last month, T-Mobile (NASDAQ: TMUS) reported that it had been hacked. In detail, the company confirmed that the data of over 50 million of its customers had been stolen via the hack. This includes data like social security numbers, driver’s license numbers, and addresses among other personal information. Overall, this is but one of the numerous high-profile cyber attacks we have seen over the past year. Given this alarming trend, online security would be a growing priority among consumers and organizations alike.
Notably, this would be where some of the best cybersecurity stocks in the stock market today come into play. As such, companies like Zscaler (NASDAQ: ZS) and Palantir (NYSE: PLTR) would come to mind. According to Wedbush analyst Dan Ives, both companies are solid options in the digital security industry now. On one hand, Ives believes that Zscaler is the Salesforce (NYSE: CRM) of cybersecurity. This would be thanks to its services catering to private organizations. On the other hand, the analyst believes that Palantir presents a “good opportunity” for those looking to bet on the federal cybersecurity market. With all this in mind, here are three top cybersecurity stocks making moves now.
Best Cybersecurity Stocks To Buy [Or Sell] Today
- CrowdStrike Holdings Inc. (NASDAQ: CRWD)
- Fortinet Inc. (NASDAQ: FTNT)
- Check Point Software Technologies Ltd. (NASDAQ: CHKP)
CrowdStrike Holdings Inc.
For starters, we will be taking a look at CrowdStrike. It comes as no surprise that CrowdStrike is among the top cybersecurity stocks making the rounds now. Namely, the company’s industry-leading artificial intelligence (AI) powered cybersecurity services have and continue to serve global organizations. CrowdStrike accomplishes this via a combination of best-in-class cloud-delivered endpoint and cloud workload protection services. Considering all of this, would it be wise for investors to keep an eye on CRWD stock?
Well, for one thing, the company’s shares would indicate the rapid rise in demand for cybersecurity services throughout the pandemic. Evidently, CRWD stock is currently sitting on monumental gains of over 570% since its pandemic era low. This could, in part, be thanks to the company reporting solid figures in its recent fiscal quarter. To highlight, CrowdStrike raked in total revenue of $337.7 million for the quarter. This adds up to a massive 70% year-over-year increase. On top of that, the company also saw year-over-year jumps of 71% in subscription revenue and 70% in annual recurring revenue. If that wasn’t enough, CrowdStrike also reported earnings per share of $0.11, beating Wall Street’s estimates.
Not to mention, the company appears to be gaining market share from its competitors. During its earnings call, CEO George Kurtz said that a Fortune 500 company swapped over to CrowdStrike’s services from Microsoft (NASDAQ: MSFT). According to Kurtz, the ransomware attack managed to get through Microsoft’s legacy security products. All in all, organizations appear to be well aware of CrowdStrike’s leading position in the industry. Could this make CRWD stock worth watching for you?
Another cybersecurity company to consider now would be Fortinet. In brief, the California-based firm develops and sells cybersecurity solutions. As you can imagine, this includes specially developed firewalls among other related services. All of which are deployed via Fortinet’s Security Fabric (FSF) software platform. Through the FSF, Fortinet delivers broad, integrated, and automated protection for its customers. This covers a wide range of possible digital attack surfaces while securing critical devices, data, and connections from the cloud.
Because of all this, some of the world’s largest enterprises, services providers, and even government organizations rely on Fortinet. Among its notable clients are MicroStrategy (NASDAQ: MSTR), Siemens (OTCMKTS: SIEGY), and the Illinois State Treasurer’s Office. With FTNT stock looking at gains of over 130% in the past year, could it be worth investing in now? If anything, the company appears to be firing on all cylinders. Firstly, it saw green across the board in its latest fiscal quarter posted back in July. In it, Fortinet reported total revenue of $801.1 million with a net income of $137.50 million. This would indicate year-over-year increases of 29% and 20% respectively. Additionally, Fortinet also ended the quarter with $1.88 billion in cash on hand, an astounding 105% surge year-over-year.
Secondly, the company does not appear to be resting on its laurels as well. Just last week, Fortinet expanded its existing partnership with Dragos, an industrial cybersecurity firm. Simply put, the duo is integrating their core platforms to provide joint customers with advanced security and simplified deployment across their operational tech infrastructure. All things considered, will you be adding FTNT stock to your watchlist?
Check Point Software Technologies Ltd.
Following that, we have Check Point Software Technologies (CHKP). Essentially, CHKP provides potential clients with both software and hardware solutions. Among its key software offerings are IT security services. These include but are not limited to network, endpoints, cloud, mobile, and data security solutions. Given the relevance of CHKP’s offerings among both enterprise and consumer customers, I could see investors eyeing CHKP stock.
At the same time, the company remains hard at work on the operational front. Just this week, CHKP acquired Avanan, a rapidly growing cloud email security firm. Simply put, Avanan’s tech provides security for email systems and Software-as-a-Service collaboration suites. By integrating its wares with CHKP, the duo is looking to provide the “world’s most secure email security offering”.
Regarding this move, CHKP’s CPO, Dr. Dorit Dor said, “More and more businesses are moving to cloud-email platforms and with email becoming a major channel to launch devastating cyber-attacks, this acquisition represents a huge potential as organizations are looking for a new approach to email and collaboration suite security.” No doubt, as organizations extend their work-from-home period amidst rising coronavirus cases, this would be a timely play by CHKP. Given all of this, would CHKP stock be worth your attention?