Looking For The Top Cybersecurity Stocks To Watch Next Week? 3 Making Moves
Cybersecurity stocks have become one of the hottest offerings on the stock market this year. This is thanks to a massive rise in digital acceleration for companies throughout the world. With so much valuable data being uploaded this year, hackers are more incentivized to conduct cyberattacks. These range from destruction of data and theft of intellectual property to embezzlement and even reputational harm to the company. Considering that the stakes are higher than ever in this space, companies are more than happy to shell out funds to stay protected. In turn, this has translated to big gains for top cybersecurity stocks and their investors this year.
One great example of this would be CrowdStrike (CRWD Stock Report). The cyber-attack response service provider has had a phenomenal year. Its share prices have skyrocketed by about 320% year-to-date. Besides, SolarWinds (SWI Stock Report) which suffered breaches had since turned to CrowdStrike to fortify its systems as well. This came after the devastating news of various U.S. federal agencies being hacked. Another company that saw a massive jump from this news was cybersecurity company FireEye (FEYE Stock Report) who spotted the initial hack. As a result, its share prices are now sitting at gains of over 180% since the March lows.
In a world with growing cyber threats, even government agencies are not safe from these kinds of attacks. Many businesses would likewise feel the need to review their online defenses. Therefore, it would not surprise me if top cybersecurity stocks continued to soar well into 2021. But, as with most tech, there will always be another innovation around the corner. Accordingly, here is a list of some of the best cybersecurity stocks to buy in the stock market today.
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Best Cybersecurity Stocks To Watch In January 2021: Palo Alto Networks
First up, we have multinational cybersecurity company Palo Alto Networks (PANW Stock Report). Its core products include advanced firewalls and cloud-based offerings packaged on its proprietary platform. The cloud-based offerings in particular serve to extend its firewalls to cover numerous aspects of online security. PANW stocks are up by over 160% since the stock market sell-off in March. Investors may be curious to know what the company is doing to keep up its stellar performance so far.
Earlier this month, Palo Alto acquired attack surface management (ASM) company, Expanse. In detail, the deal was completed with a sum of $670 million in cash and stock. With the integration of Expanse’s ASM solutions and Palo Alto’s platform, we could be looking at a powerful alliance in the making. Given that this happened just before the news of the U.S. cyberattack broke, the timing seems to be in favor of the company. Investors of PANW stock would likely be anticipating what this acquisition will bring for the company moving forward.
From the company’s first-quarter fiscal reported last month, it recorded $946 million in total revenue for the quarter. Moreover, it also saw a 69% jump in cash on hand year-over-year. This adds up to over $2.1 billion. CEO Nikesh Arora summarized, “We delivered another consecutive strong quarter of solid results, with first-quarter billings of 21% year-over-year growth; both our firewall transformation and our Next-Generation Security services continue to make great progress, giving us the confidence to raise previously issued guidance for the year.” Should Palo Alto keep up its current momentum, do you think PANW stock will see new highs in 2021?
Best Cybersecurity Stocks To Watch In January 2021: Zscaler
Zscaler (ZS Stock Report) is a cloud security company that has been on many investors’ radars this year. With ZS stocks surging over 320% year-to-date, it’s not hard to see why. With the rise in the cloud industry, this is where Zscaler’s cloud security-as-a-service comes into play. Let us take a closer look at the numbers from the company’s recent quarter.
As expected, Zscaler reported steady growth throughout its first-quarter fiscal earlier this month. It saw a 52% year-over-year rise in total revenue for the quarter. The company cited its customers as a key contributor to this growth with a 64% surge in calculated billings over the same period. CEO Jay Chaudhry said, “Organizations are turning to the Zscaler™ Zero Trust Exchange platform for the right security architecture, which can be implemented easily and rapidly. Our visibility and business momentum remain strong, and we are pleased to increase our fiscal year guidance.” With a performance like that, it is understandable why investors are flocking to ZS stock.
To add to that, the company has also stepped up in the wake of the SolarWinds cyberattack. Last week, it launched a comprehensive security assessment program to help organizations navigate the recent hack. It is designed to assess the supply-chain attack, analyze how it affects a company, and inform adherence to Zscaler’s recommended best practices. This shows Zscaler’s capability to adapt to the latest issues in cybersecurity which is vital in a constantly evolving sector. Safe to say, there is a good chance investors are watching ZS stock closely. How about you?
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Best Cybersecurity Stocks To Watch In January 2021: Check Point Software Technologies
Last, on our list, Check Point (CHKP Stock Report) is an Israel-based multinational provider of hardware and software for IT security. Its products provide a wide range of coverage for clients. These include network, endpoint, cloud, mobile, and data security. CHKP stocks are up by over 12% this month likely due to the tailwinds from the SolarWinds hack. It hit a new all-time high on December 29 but has since taken a slight breather. Investors will be delighted to hear that Check Point is not resting on its laurels just yet.
On Tuesday, it was announced that Check Point would be partnering up with OMNIQ Corporation. OMNIQ is a provider of supply chain and artificial intelligence-based solutions. The collaboration will see the integration of Check Point’s security solutions with OMNIQ’s supply chain mobility solutions. Notably, this means that Check Point will be providing security for OMNIQ’s multi-industry customer base which includes Fortune 500 companies. This is a big development for Check Point. Should the company play its cards right with these big clients, investors of CHKP could be in for a treat.
In its third-quarter fiscal reported in October, Check Point raked in $509 million in total revenue. It ended the quarter with $248 million in cash on hand. CEO Gil Shwed said that revenues grew in all key areas of operation which contributed to the great performance throughout the quarter. It seems that Check Point is firing on all cylinders as we move into 2021. Would you be adding CHKP stock to your watchlist?