Are These The Best Cybersecurity Stocks For Your Portfolio?
Cybersecurity stocks are a hot commodity this year. Not a second goes by that our electronic devices aren’t under attack. The coronavirus pandemic continuing to keep everyone under their own shelters. Thus, many organizations increasingly find themselves needing to operate remotely. For this reason, the need for strong cybersecurity solutions has never been more pronounced as more people carry out their daily activities online.
While it is important to protect your devices with cybersecurity solutions, it is also equally, if not more important, to protect your wealth by investing in a list of top cybersecurity stocks. In an increasingly digitized world, a larger amount of valuable information is being transmitted through the digital space. Shares of Zoom Video Communication (ZM Stock Report) skyrocketed more than 40% at one point during Tuesday’s intraday trading.
This boosted some of the work-from-home stocks as well. This signals the rise of cloud and other tech subsectors. The growing number of threats make cybersecurity solutions an absolute necessity. With all that in mind, are these top cybersecurity stocks to buy on your watchlist now?
American Web Infrastructure & Security Company: Cloudflare
First, up the list, Cloudflare (NET Stock Report) provides security and content delivery services that shield websites and applications from cyber-attacks. The company’s global footprint, including in China with a partnership with JD.com (JD Stock Report), played a big part in their growth story. To date, the company helps support over 27 million websites, blocking over 72 billion threats per day. The company’s NET stock has climbed 133% year-to-date.
From its latest quarterly earnings, the company posted impressive sales growth and have recorded strong profit margins. Its revenue grew at a 50% annualized rate from 2016 through 2019. And the company continues to see strong gains this year. The second-quarter revenue came in at $99.7 million, which was significantly higher than the analysts’ consensus of $94.17 million.
Sales would have been even higher, but Cloudflare wasn’t exactly focusing on growing its client base. Should the company continue to lead with continuous innovation in new growth areas, Cloudflare stock could be one of your best tech stocks to buy and hold for the decade to come.
Why CrowdStrike Stock Popped Ahead Of Earnings
Next up, shares of CrowdStrike Holdings (CRWD Stock Report) are up 14.28% during intraday trading on Tuesday. The company will report its earnings after the closing bell today. Investors might be wondering why the jump in share prices happened before the release of earnings. The truth is, the stock rallied after analysts from RBC Capital and Barclays Capital have both raised their target prices for CRWD Stock.
Of course, investors can choose to believe the guidance provided by analysts. But we’ll still need to see the results to get a clearer idea. That helps to see if the recent jump in stock price is justifiable.
Now that the stock is going up in pre-market trading, would it still be worth the risk to buy in when the market opens? Apart from the cybersecurity offerings, the company’s Internet of Things (IoT) offerings should also reward Crowdstrike’s shareholders handsomely over the next decade.
Okta Stock Is On A Tear; Here’s Why Investors Should Take Notice
Last on the list, Okta (OKTA Stock Report) stock is poised to benefit from the secular shift to cloud computing. The company’s solutions allow corporate clients to authenticate the identity of their employees and customers when they use web applications remotely. For this reason, the company’s services have instantly become critical for organizations that need to work remotely.
There’s no question Okta’s success this year is fueled by the pandemic. That is in line with the rapid rise of cloud stocks in the stock market this year. As for OKTA stock, it has climbed more than 90% year-to-date.
Despite the strong performance, the company is not yet profitable. Chances are profitability may come as revenue grows further and as the company’s services become more entrenched in the market. And when that happens, this could be the best cybersecurity stock to buy.