3 Top Cybersecurity Stocks Worth Watching Right Now

Despite fears over another wave of coronavirus infections and a lackluster private payroll report, corporate earnings continue to impress. Notably, the tech industry seems to be on a roll in the stock market now as demand for tech-related services persists. In particular, a booming section of this industry today would be cybersecurity stocks. This shift in focus makes sense in the current age we live in. From company assets to personal data, the number of viable targets for cyberattacks has and continues to increase significantly. Because of all this, I could see investors looking out for the best cybersecurity stocks in the stock market today.

For example, we could look at the likes of Fastly (NYSE: FSLY) and Zscaler (NASDAQ: ZS). For starters, Fastly offers cloud computing services that allow developers to extend core cloud infrastructure securely to users. This would be crucial in an age where businesses rely heavily on the web to interact with consumers. Meanwhile, Zscaler is an IT security company that offers cloud-based information security solutions. As it stands, both FSLY stock and ZS stock are sitting on gains of over 100% since their pandemic era lows.

Specifically, ZS stock seems to be gaining towards new heights as demand for Zscaler’s digital security software continues to grow. This would be thanks to its leading role not only as a cybersecurity service provider but also in researching industry trends. Just last month, the company reported that there has been a 700% increase in cybersecurity breaches related to Internet-of-Things devices. Seeing as this rise is compared to pre-pandemic figures, one thing is clear. Cybersecurity services are more vital than ever. With that being said, do you have these 3 top cybersecurity stocks on your August watchlist?

Top Cybersecurity Stocks To Buy [Or Sell] Now

Cloudflare Inc.

To begin with, we will be taking a look at Cloudflare. In brief, the California-based company specializes in providing web infrastructure and website security solutions. This includes but is not limited to its content delivery network and distributed denial-of-service (DDOS) mitigation services. Simply put, Cloudflare’s services essentially connect web browsers to an organization’s web hosting provider. According to Cloudflare, its suite of offerings can protect and accelerate “any internet application online” without adding unnecessary digital bulk or altering code. Safe to say, Cloudflare’s services would be relevant as the pandemic continues to rage on across the globe.

Likewise, investors appear to be keen on NET stock right now as well. This would be the case as the company’s shares boast year-to-date gains of over 55%. With NET stock trading within striking distance of its record high, could it be worth investing in now? Well, for one thing, this could be thanks to hype around Cloudflare’s second-quarter earnings call due after today’s closing bell. If anything, consensus estimates suggest that the company could see year-over-year gains of 46.5% in total revenue for the quarter.

Positive analyst estimates aside, the company does not seem to be sitting idly by on the operational front as well. As of July 21, Cloudflare is now officially part of the FedRAMP marketplace. In short, FedRAMP stands for the Federal Risk and Authorization Management Program. By getting on FedRAMP, Cloudflare’s market reach now extends to more federal agencies. All things considered, I could see this giving NET stock more room to run in the long-term. Would you agree?

top cybersecurity stocks (NET stock)
Source: TD Ameritrade TOS

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CrowdStrike Holdings Inc.

Another top name to know in the booming cybersecurity industry today would be CrowdStrike Holdings. Namely, CrowdStrike is one of, if not the most active players in the industry right now. From its major role in evaluating the massive SolarWinds (NYSE: SWI) data breach back in December 2020 among other notable cyberattacks globally, this would be the case. In essence, the company provides a wide array of cybersecurity services to organizations of varying sizes. This ranges from cloud workload and endpoint security to threat intelligence and cyber-attack response services.

The real question now is, would all of this make CRWD stock a top cybersecurity stock to watch? Evidently, investors appear to think so as the company’s shares are now up by over 125% in the past year. Similar to our previous entry, CRWD stock is also trading close to its all-time high levels. This would serve to highlight the current hype among tech investors towards cybersecurity stocks now.

Despite its current momentum, CrowdStrike appears to be hard at work finding new ways to expand its offerings. In detail, the company now offers a broader selection of cybersecurity solutions to customers via its new Falcon X Recon+ (FXR+) service. According to CrowdStrike, FXR+ serves to simplify the process of hunting and mitigating external threats to customers’ digital infrastructure. It accomplishes this by monitoring, triaging, assessing, and responding to threats in the background. Overall, this would enable customers to focus on their businesses while CrowdStrike handles things on the digital security end. With all this in mind, would CRWD stock be a top buy for you now?

CRWD stock
Source: TD Ameritrade TOS

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Okta Inc.

Following that, we have IT service management firm, Okta. For the most part, the company provides cloud-based enterprise software solutions to organizations. Through Okta’s offerings, companies get secure user authentication infrastructure built into their digital ecosystems. In a nutshell, this provides organizations with significantly greater security across their workforce. Not to mention, company developers can build identity controls into applications, websites, and devices through Okta as well. While most cybersecurity firms address the software side by focusing on digital weaknesses, Okta accounts for user identity authentication.

All this would add to the appeal for OKTA stock now. Since its pandemic era low, the company’s shares are now looking at gains of over 130%. Nevertheless, Okta continues to make aggressive plays, further bolstering its executive management team. To highlight, veteran Google (NASDAQ: GOOGL) executive, Sagnik Nandy, recently joined Okta as its new CTO. Nandy is now leading Okta’s engineering and business tech division. Here, he will be responsible for the strategic planning of product development efforts.

With more than 15 years of experience working at Google, most would argue that Nandik is a major asset for Okta now. In fact, he oversaw several critical components of Google’s industry-leading advertising business. Okta CEO Todd McKinnon said, “Sagnik is the right leader to further extend Okta’s technology and market leadership and drive our next phase of innovation — we’re thrilled to welcome him to the team.” By and large, will you be adding OKTA stock to your portfolio because of this?

OKTA stock
Source: TD Ameritrade TOS

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