Should these cybersecurity stocks have a place on your watchlist?
Trending Cybersecurity Stocks To Watch This Week
Cybersecurity stocks have been on the radars of stock market investors over the past few years. This is especially true this year as there has been a slew of major cyberattacks across the board in the U.S. Well, this is only natural given that companies have been increasing their digital presence. Hence, the demand for cybersecurity services are at an all-time high. It would be ludicrous for any sizable company to not have protection against cyberattacks in today’s world.
Yesterday, we saw Microsoft (NASDAQ: MSFT) announce that former Amazon (NASDAQ: AMZN) cloud computing executive Charlie Bell has begun his new role working on cybersecurity issues at Microsoft. Mr. Bell will be focusing on advancing cybersecurity capabilities that will benefit the tech sector and the broader economy. Large corporations such as these companies put a significant amount of emphasis on cybersecurity as they could not afford to have any potential breaches or leaks. Given these considerations, cybersecurity stocks sure seem like an industry with room for growth. So, do you have a list of the top cybersecurity stocks in the stock market today?
Cybersecurity Stocks To Watch Right Now
- Zscaler Inc (NASDAQ: ZS)
- Crowdstrike Holdings Inc (NASDAQ: CRWD)
- F5 Networks, Inc (NASDAQ: FFIV)
- Palo Alto Networks Inc (NYSE: PANW)
Zscaler is a company that focuses on providing a cloud security platform designed on a zero-trust architecture. Its architecture allows users and devices to safely access authorized applications and services in the cloud using the Internet. Zscaler’s security and user experience solutions are purpose-built on a multi-tenant, distributed cloud exchange that secures access for users and devices to applications and services, regardless of location.
Last month, the company reported its fiscal fourth-quarter earnings report. Safe to say, it was an outstanding quarter for the company as it was able to seal a record number of large deals across diverse sectors. This drove its revenue growth by 57% and billings growth by 70% year-over-year. As more enterprises turn away from legacy castle-and-moat security, there has been increasing adoption of Zscaler’s cybersecurity solutions to accelerate their secure digital transformation.
Despite its impressive financials last quarter, Zscaler is not resting on its laurels just yet. The company partnered with Siemens to work on integrated Zero Trust Security Solutions last month. This will enable customers to securely access Operational Technology systems and applications in the production network from the workplace. These new capabilities will allow users to remotely manage and control quality assurance or diagnoses issues. Given all these, would you add ZS stock to your watchlist?
Source: TD Ameritrade TOS
Following that, we will be looking at CrowdStrike. Essentially, the company is a provider of cloud-delivered solutions for endpoint and cloud workload protection. Its Falcon platform comprises two integrated technologies, lightweight agent and threat graph. The platform offers a set of cloud-delivered technologies that provides a wide range of products including antivirus, endpoint detection, and many more.
In September, the company announced the availability and FedRAMP authorization of CrowdStrike Falcon Forensics. Hosted within GovCloud, Falcon Forensics speeds up response time and remediation of critical security incidents for agencies by providing increased visibility and automated analysis of attacker activity. This is something most companies and agencies appreciate in the modern world today. The speed of response is absolutely crucial to help agencies prevent security incidents from turning into breaches.
Historically, government agencies have struggled with disparate tools and time-consuming efforts when collecting and consolidating forensic data. This delays their ability to provide the critical analysis that is required to get ahead of fast-moving threats. Hence, Falcon Forensics will play a significant role in simplifying threat hunting and hopefully lead to better decision-making. With this development in place, would you consider CRWD stock a top cybersecurity stock to watch?
Source: TD Ameritrade TOS
Another top cybersecurity stock on many investors’ radar would be F5 Networks. The multi-cloud application services provider enables its customers to develop, deploy, secure and govern applications in any architecture. These range from on-premises to the public cloud. For the most part, the company’s target customers are large enterprise businesses, Governments, public sector institutions, and service providers. FFIV stock has risen more than 50% over the past year.
Last Monday, F5 Networks finally completed the acquisition of Threat Stack. With Threat Stack’s cloud security capabilities integrated into F5’s applications and API protection solutions, it will enhance visibility across application infrastructure and workloads to deliver more actionable security insights for customers. Hence, the company will be able to address customers’ needs more effectively while easing the burden on their security teams.
On the financial front, F5 Networks has also been performing relatively well. During its third quarter, the company posted GAAP revenue of $652 million, an increase of 12% year-over-year. Meanwhile, its GAAP net income was $90 million, compared to $70 million in the prior year’s quarter. Overall, it appears that F5 Networks is growing in the right direction. With the company announcing its fiscal fourth-quarter earnings on October 26, would you invest in FFIV stock ahead of time?
Source: TD Ameritrade TOS
Palo Alto Networks
To sum up the list, we have the cybersecurity service provider, Palo Alto Networks. Similar to those mentioned above, the company’s core products consist of cloud-focused digital security solutions. These include but are not limited to advanced cloud-based firewalls, threat detection and prevention, and network security. If you had invested in PANW stock a year ago, you would’ve almost doubled your money by now.
Recently, the company announced that it has signed an agreement with Ingram Micro Inc. The agreement allows Ingram Micro to distribute the Palo Alto Networks Okyo™ Garde cybersecurity solution to its value-added resellers and technology solution providers. The Okyo Garde is a new cybersecurity offering that combines hardware, software, and security services into one simple subscription. It is tailored for small businesses and workplaces that include the office and home.
Small businesses are no exception to cyberattacks. Hence, Okyo™ Garde is designed to give small businesses without dedicated IT support the ease of managing their service through a mobile app. With all said and done, Palo Alto Networks seems to be firing on all cylinders as it continuously releases new innovations. So, do you think PANW stock is a good investment now?
Source: TD Ameritrade TOS
Originally Posted on October 12, 2021 – 4 Top Cybersecurity Stocks To Watch In October 2021
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