Cyber security stocks: In A Bleak Market For Growth Stocks, Cybersecurity Could Be A Future Bright Spot

A 106% surge in revenue resulted in an adjusted EPS of 16 cents, bringing in a much-needed windfall of profits. CEO George Kurtz commented on its staggering results, with annual recurring revenue increasing by 54% year-over-year. Kurtz was impressed by the record number of customers providing at least $1 million to expand its ARR, further positioning the firm for incredible numbers ahead. The ETFdb Ratings are transparent, quant-based evaluations of ETFs relative to other products in the same ETFdb.com Category. As such, it should be noted that this page may include ETFs from multiple ETFdb.com Categories.

Palo Alto Networks is also one of a handful of tech companies that has successfully made the pivot towards emphasizing profitability in this evolving macro environment. Management is doing an excellent job accelerating its efforts to drive incremental operating leverage. They have previously committed to 50 to 100 basis points of operating margin expansion and 100 to 150 basis points of adjusted cash flow margin expansion from fiscal 2022 through 2024. Cybersecurity isn’t completely immune to the weaker macro environment, but it should be one of — if not the — most resilient areas of enterprise spending.

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A data storage company that specializes in block chain technology. They are working on a new token that can be a great opportunity. In the fiscal third quarter , CHKP’s total revenues increased 8.2% year-over-year to $577.60 million. The company’s non-GAAP operating income and non-GAAP net income increased marginally year-over-year to $262.70 million and $221 million, respectively. Also, its non-GAAP EPS came in at $1.77, representing a 7.3% year-over-year improvement. Cybersecurity resilience emerges as a top priority for 96% of executives surveyed, as 62% of organizations say security incidents impacted their business operations.

Fortinet also saw strong growth in software-defined wide-area networking and operational technology. Spending on cybersecurity has grown due to the COVID-19 pandemic because remote work has rapidly expanded. These companies serve various customers, including individuals, the government, and businesses. However, another angle on this discussion regards how different types of IT spending can toggle up and down at different times. From the evidence that we can see, it is clear that the threat environment as it relates to cybersecurity is quite high.

This could bode well for companies that provide software, hardware, and services that help secure computer systems and networks. This threat may also make companies and governments more serious about protecting their networks and digital infrastructure, translating into higher demand for cybersecurity companies as time goes on. Cybersecurity companies provide services to protect electronic information from theft or damage. Businesses in the cybersecurity industry utilize both software and hardware to ensure that computing devices and data are not misused. The industry serves a broad array of customers including individuals, businesses, and government, among others.

These include 63% of the Fortune 500 and 68% of the Global 2000. The Qualys platform manages over 2 trillion security events per year and handles more than 6 billion IP scans and audits. There are also more than 20 apps, such as for integrated IT, security protections and compliance. Analysts’ average price targets courtesy of S&P Global Market Intelligence. Not all of the companies are solely involved in cyber defence, but it gives exposure to the industry. Trade Blackberry shares in a live account, or practise trading first in a demo.

But if the company continues to handily beat expectations, then the stock will prove to be much a much better value than what it has appeared. Additionally, as the leader in cybersecurity, it’s consistent 20% grow is more defensible than other areas of tech, which are experiencing problems from economic weakness. The company continues to deliver quarter after quarter of rising revenue.

The 7 Hottest Cybersecurity Stocks to Own for 2023 and Beyond

To determine the best cybersecurity stocks to buy now, we studied industry analysis reports and identified key players operating in the space. We studied these companies in detail and reviewed their product pipelines and business models. We then selected companies with robust product pipelines, strong fundamentals, and positive market sentiment. Along with each stock, we have included analyst ratings, the hedge fund sentiment, and salient features that make them viable investment options to consider. These stocks are ranked according to their popularity among elite money managers. American security firm Proofpoint was established in 2002 and is ranked among the top cyber security companies stock.

CIBR has provided a total return of -17.7% over the past 12 months, below the Rushttps://forex-world.net/ 1000’s total return of -12.5%. The fund managed $1.1 billion of assets in mid-2022 and has an expense ratio of 0.5%. The Global X Cybersecurity ETF is also more concentrated, with only 25 stocks in its portfolio. Since its inception, the fund has outperformed its competitors on this list.

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Another thing often discussed regards the cost of customer acquisition. If the business is working, one can always turn down that spending in the future—hopefully with more customers—and have a more profitable business. Tenable.io manages and measures cyber exposure across a range of traditional IT assets, such as networking infrastructure, desktops and on-premises servers. SecurityCenter is built to manage and measure cyber exposure across traditional IT assets and can be run on premises, in the cloud or in a hybrid environment. It serves various industries such as finance, health care, retail, energy and others. The company has a presence in the Americas, Europe, the Middle East, Africa and Asia-Pacific.

The cyber security stocks segment made BlackBerry $106 million in Q3 2023, compared to $128 million in the same period the year before and far lower than expectations of $164 million. This caused Blackberry shares to drop despite otherwise posting positive earnings – giving an insight into how much significance investors place on Blackberry’s cybersecurity arm. Blackberry is probably most well-known as a smartphone manufacturing company, so a lot of people aren’t even aware that it’s a leading cybersecurity software firm too. But it’s exactly this diversified nature that many believe puts Blackberry in a good position. Scaler started out as a software-as-a-service product for cloud computing protection, but is now more focused on end-user monitoring products, which have risen in popularity with the working-from-home trend. Zscaler is another cloud security company, which enables organisations to provide employees with access to internal apps and services securely.

The stock has gained 10.4% over the past three months to close the last trading session at $51.99. Operating income rose 45.3% from the prior-year quarter to $324.90 million. Non-GAAP net income attributable to FTNT and non-GAAP net income per share attributable to FTNT came in at $262.70 million and $0.33, up 58.3% and 65% from the prior-year period, respectively. However, it’s essential to do your research before investing to ensure you know what you’re buying and the potential risks. This is a distributed IT architecture where client data is processed as close to the originating source as possible. Since there is an increasing amount of information traveling across the internet, CDNs are becoming more important.

• Fortinet released an analysis of the attack detailing that the complexity of it suggests an advanced hacking group.
• Demand for cybersecurity products and services remains steady, even in a rough economic climate.
• The fund managed $1.1 billion of assets in mid-2022 and has an expense ratio of 0.5%.
• Chris Markoch is a freelance financial copywriter who has been covering the market for over five years.

Check Point Software’s Value Score ranking is based on several traditional valuation metrics. The company has a rank of 84 for the price-to-sales (P/S) ratio, 10 for shareholder yield and 52 for the price-to-free-cash-flow (P/FCF) ratio. The company has a price-to-sales ratio of 6.77, a price-to-free-cash-flow ratio of 17.5 and an 8.1% shareholder yield.

Check Point Software Technologies Ltd. is a pure-play cybersecurity vendor. The company offers solutions for network, endpoint, cloud and mobile security in addition to security management. It develops, markets and supports a range of products and services for information technology security. These product offerings are grouped into functional packages to address specific security issues.

For example, once FTNT software is installed, customers will continue to pay for ongoing software and services. The company has also been investing in employee endpoint protection, which is essential for remote employees. Daiwa Capital Markets analyst Stephen Bersey also upgraded CRWD to a buy rating with a price target of $181 a share. A key factor to the success of the go-to-market strategy has been partnerships with Managed Security Service Providers .

“Attacks continue to rise in frequency and are getting sophisticated,” said Tejas Dessai, AVP and research analyst at Global X. It’s worth noting that the cybersecurity industry is extremely dynamic due to constantly changing threats. This means the ‘best’ companies to trade today might not be the best tomorrow as companies will need to work quickly to have a competitive advantage. That makes it important to do your research and due diligence, and not rush into positions. Cybersecurity stocks are the shares of companies involved in protecting online systems against criminal activity – such as ransomware, phishing and other kinds of cyberattacks.