Check Out These Top Cybersecurity Stocks As The Demand For For Cyber Defense Continues To Grow.
The bull thesis for some of the top cybersecurity stocks in the stock market today continues to grow. If anything, the world today is more exposed to cybercrimes than ever. As most would agree, this would likely see demand for cybersecurity services skyrocketing. For instance, Palo Alto Networks (NYSE: PANW) stock is soaring this morning. This came after the company posted better-than-expected results for its fiscal fourth quarter. Revenue came in 28% higher year-over-year to $1.2 billion. What’s more, the company also provided a strong financial outlook for the coming quarter.
Impressive numbers aside, some may be wondering how much the trend can continue in the aftermath of the pandemic. After all, the rise in the number of people working remotely has accelerated the growth of the cybersecurity industry. Certainly, some may have already returned to offices now. But many companies are in fact delaying their plan to bring employees back to office due to rising infection numbers.
Regardless, organizations continue to recognize the need to be vigilant of issues such as data breaches and ransomware attacks. Because of all this, top cybersecurity stocks by extension, are in the limelight. With that in mind, here are 4 cybersecurity stocks to consider investing in the stock market right now.
Best Cybersecurity Stocks To Watch Now
- CrowdStrike Holdings Inc. (NASDAQ: CRWD)
- Cloudflare Inc. (NYSE: NET)
- Tenable Holdings Inc. (NASDAQ: TENB)
- Fortinet Inc. (NASDAQ: FTNT)
CrowdStrike
CrowdStrike is one of the most reputable cybersecurity companies in the industry right now. Many investors are eyeing CrowdStrike stock in the stock market today. This came after the news that the stock will become part of the NASDAQ-100 index beginning August 26. As a result, index funds that track the index will be adding CRWD stock to their portfolios. What really allowed the company to stand out from its peers is the company’s Falcon platform. For those unfamiliar, Falcon is a cloud-based, AI-focused approach that offers a safer and often more cost-effective solution to its clients, relative to on-premise security options.
CrowdStrike is due to report earnings on August 31, after the market closes. From its first-quarter earnings, the company projected revenue of $188 million for the second quarter. The company also announced yesterday that it has been named a leader in IDC: MarketScape for U.S. Managed Detection & Response Services. This is another testament that its Falcon platform offers unparalleled services to its clients. With the current robust demand driven by rising needs for cybersecurity solutions, I won’t be surprised if CRWD stock can continue to climb in the long run.
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Cloudflare
Cloudflare continues to be one of the favorite cybersecurity stocks among investors. Some of the company’s potential growth drivers include serverless computing, internet of things (IoT), and 5G. These present massive opportunities for the company to tap into. With more businesses moving their operations to the cloud, Cloudflare could see explosive growth in this burgeoning cybersecurity industry. That’s because of its role in safeguarding and speeding up the internet. If anything, Cloudflare is ramping up to be able to take market share from cloud hosting companies rather than the other way around.
Earlier this month, Cloudflare reported its strongest quarter ever as a public company. Revenue came in 53% higher year-over-year. The company also added a record number of large customers (those paying over $100,000 annually), which it now has 1,088 at this level. Since its second-quarter report, there have also been notable upgrades from analysts. The company continues to be a leader in the fast-growing industry. Some may not expect NET stock to continue rising at the same pace that it had since the start of 2020. But if you have a long-time investment horizon, it’s worth taking a chance on NET stock.
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Tenable Holdings
Tenable is a cloud-focused threat detection platform with the industry’s broadest common vulnerabilities and exposures (CVE) coverage. The company’s Nessus software was a breakthrough product over a decade ago, providing real-time vulnerability analysis. For starters, the company offers Nessus Essentials, a free solution, and Nessus Professional, a paid license subscription. The free version is not a holistic security solution. But it can be used to scan a network for vulnerabilities and is also programmable.
From the company’s second-quarter fiscal results, revenue came in 23% higher year-over-year to $136.8 million. The company also generated an 18% increase in gross profit year-over-year. Nevertheless, it continues to record net losses while it scales its business. Its largest rise in costs occurred in sales and marketing, reflecting its focus on customer acquisition.
However, Wall Street is expecting Tenable to deliver a full-year profit of $0.27 per share, followed by 44% growth in 2022. The company’s revenue forecast of up to $531 million in 2021 is aligned with Wall Street’s estimates. Despite the earnings beat, Tenable stock is still down 20% year to date as compared to other cybersecurity stocks on this list. Considering its strong growth and potential, would now be a good time to invest in TENB stock?
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Fortinet
Fortinet is one of the most technologically advanced cybersecurity companies in the space with cutting-edge hardware and software solutions. The company established its credibility with some of the largest enterprises and government organizations around the world as its clients. And it is not resting on its laurels. In July, Fortinet added a new security service called FortiTrust. In detail, FortiTrust offers user-based licensing across all networks, endpoints, and clouds.
From the company’s second-quarter earnings results, the company handily topped expectations. Revenue came in 30% higher year-over-year to $801 million. The impressive quarter also saw $395 million of free cash flow. That was an increase of 83% from a year ago. Following the beat in financial results, Fortinet also upgraded its outlook for the full year 2021. Management now expects revenue to be in the range of $3.21 billion to $3.25 billion, implying full-year growth of 25% at the midpoint. With such growth prospects, would you consider FTNT stock a top cybersecurity stock to invest in now?
