Based on need alone, the world of cybersecurity should be a booming industry in its own right. 86% of organizations around the globe have suffered from some type of data breach.
Did you know the average data breach can cost a company $4.24 million to clean up from and recover?
So despite a somewhat volatile market of late, it’s why cyber security stocks have remained strong for the most part.
Companies know they can’t function without technology that manages their business and important data. The focus on cyber security garnered new light as companies sent workers home to work from their kitchen tables during the height of the pandemic.
This heightened and growing demand placed on the importance of cybersecurity makes cybersecurity investing an interesting arena to consider. Read on to learn more about the most interesting cyber security stocks to watch right now.
A10 Networks Inc (ATEN)
A10 Networks Inc provides software and hardware solutions through secure applications. The company offers security solutions for:
- On-premises environments
- Multi-cloud environments
- Edge-cloud environments
Users can secure their applications, users, and infrastructure using these secure applications. The A10 Networks software and hardware solutions protect against Internet, web, and network threats.
The company got a nice boost from 2021 income taxes. They released the Q3 2021 earnings and reported a solid and steady growth from the previous quarter. 2021 income reports show $250 million in revenue.
You know when you place your luggage on the turnstile and hope it makes it to where you’re going at the same time you do. Or you send a package and pray it isn’t lost in transit.
Akamai is in the business of making sure the data you, or a company, sends gets to its proper delivery location. This company runs a content delivery network (CDN) to move data safely on the Internet from place to place.
Akamai is the leader in developing something called edge computing technology. It takes data away from traffic-filled data centers and instead gets the data to the end-user.
Also making Akamai desirable is their recent acquisition of Israel-based Guardicore to help customers handle ransomware attacks.
CACI International Inc
CACI International is an information technology company. They provide software as a service (SaaS) for:
- Cloud-powered solutions
- Mobile and network security
- Other digital solutions
They are a primary provider for defense, civilian, and intelligence agencies for the US government.
The company recently completed its acquisition of SA Photonics Inc. The company is a provider of multi-domain photonics technologies.
Also worth noting is their recent task order to the tune of $258 million for US Department of Defense business systems.
The company has held a steady buy rating amongst investors for many months now.
CheckPoint Software (CHKP)
CheckPoint Software is an interesting company to consider for cybersecurity investing because it’s, well, pretty uninteresting. It’s a smaller company compared to many others on this list.
It had a recent dip in value, like many of this list. Yet, it also just recently hit an all-time high on the market.
Shares continue to trade at a much higher value than expected based on their earnings with steady interest and activity in the company.
CrowdStrike remains one of the best cyber security stocks around. This company is a cloud-native software company making them lucrative as more and more people continue to work away from the office.
Their products work to protect devices such as laptops, PCs, servers, and any other device connected to a network with endpoint security.
CrowdStrike’s product uses artificial intelligence. Its software does machine learning to look for and eliminate security breaches and threats.
CrowdStrike continues to offer security for individual users and businesses. It also has a variety of integration agreements with other tech companies.
This company has consistently shown strong sales numbers. It doesn’t look to slow down anytime soon. This makes CrowdStrike a solid investment choice in the cybersecurity realm.
Fortinet remains one of the best cyber security stocks to buy. They are one of the largest cybersecurity companies in the world and consistently a leader in revenue production.
Their books show them to be highly profitable, with double-digit profits consistently.
One aspect that’s made Fortinet stand out amongst its peers is its organic investment in the development of cloud security to remain competitive in the market.
If your business needs or knows anything about the need for a firewall in its technology system, you know of Fortinet. It remains best in class for hardware, also fueling its revenue stream.
Leidos Holdings Inc (LDOS)
Leidos Holdings, Inc. is another company using artificial intelligence. They have their software perform machine learning analytics to provide cybersecurity solutions.
The company is a technology, engineering, and science solutions software provider to defend mission-critical networks.
Leidos was just awarded a contract with the National Institute of Allergy and Infectious Diseases (NIAID), estimated to be worth $545 million across all task areas. It’s a seven-year contract to provide biomedical preclinical and development capabilities.
Mimecast is in the business of protecting email and corporate information by using next-generation cloud security and risk management services.
They offer proprietary cloud-based services to protect email and corporate systems from business and data security risks.
Their board recently showed support for being acquired by the global private equity firm Permira after which time they will become a privately held company.
After the acquisition, no shares will be available on public markets. So, now is the time to invest in Mimecast before you can’t anymore.
Norton LifeLock is a software and cybersecurity company. While some cyber security companies have faltered of late, that’s not the case for NortonLock. It was able to pay its stockholders dividends this year.
NortonLifeLock earnings have exceeded projections, and experts expect the same again this year.
One thing investors are watching is the amount of debt carried by Norton. It well exceeds their cash and equivalents. Still, despite this, many investors are still keen on Norton for its strong and steady sales.
Okta specializes in identity and access management. They work beyond traditional security norms using their zero-trust architecture. Each time a user wants to access data or a network, they must verify their identity.
As user use continues to soar for both mobile devices and cloud-based services, identity management services are in high demand too.
Okta has shown a keen understanding of the complexities that cloud-based networks and all who are stakeholders in them might need and want to keep things secure.
While many cyber security companies are working on identity security, Okta continues to lead the charge.
Palo Alto Networks (PANW)
Palo Alto Networks is a legacy cyber security company that has worked to remain relevant amongst the changes in the security world.
They’re best known for their work with firewalls and protecting businesses’ physical locations and data centers.
Palo Alto has worked to remain relevant by acquiring over a dozen other companies that specialize in cloud-based security. The company projects double-digit growth into the foreseeable future because of this spree of acquisitions to keep them relevant.
SentinelOne did its IPO in June of 2021 and had the largest cybersecurity public offering ever. This landmark IPO gave them a market capitalization of more than $10 billion.
SentinelOne operates a cloud-based endpoint security platform, making them a competitor of CrowdStrike. Their product has been recognized for its ability to detect and resolve cybersecurity threats.
SentinelOne is one company that benefited during the pandemic. They almost doubled sales because of cybersecurity demand during this period.
Splunk is a company that offers software that specializes in data analytics. Their product helps companies handle data, including:
- Sort logs of information
- Monitor digital activity
- Orchestrate responses to data breaches
The company was around before the new wave of cloud-based technology. Yet, they’ve managed to stay relevant by converting their customer base to newer versions of cloud-based software featuring their technology.
They’ve recently worked hard to be recognized as a leader in IT technology management. This makes them an interesting stock watch because of their high projected sales numbers, as a result of this new focus.
Finally, another of the top cyber security stocks is ZScaler. Their cloud-based security works in conjunction with endpoint security to protect data and keep it secure.
They started as a SaaS provider. Since then, they’ve recently added new internet security and end-user monitoring products.
This is making them an interesting option in the stock market since these additions have given them healthy sales growth.
Watch These Cyber Security Stocks This Year
There are many needs from businesses in the world of cybersecurity. It’s making cyber security stocks remain mostly steady in the present waffling market.
Even if these stocks take a short-term dip, look for the arena of cybersecurity companies to remain strong well into the future.
If you’re looking for more investing opportunities, we can help. Contact us today to learn more about the best cyber security stocks to consider.