cyber security stocks: Cybersecurity stocks: how to trade the cybersecurity industry

In the fourth quarter, the company’s revenues jumped by 48% year-over-year to $637.4 million and cash flows were $273.3 million, up from $159.7 million from the year prior. For the fourth quarter, CYBR revenues increased by 12% to $169.2 million. However, the subscription business saw an 86% spike in revenue to $88.5 million. In other words, the company’s cloud strategy is getting lots of traction.

And just in case you think hackers can’t get to you, it’s already happened. Worse, according to Cybersecurity Ventures, global cybercrime costs will grow about 15% a year, reaching $10.5 trillion by 2025 (up from $3 trillion in 2015). That alone is a good reason for investors to look at some of the hottest cybersecurity stocks on the market. For those with a longer-term outlook on the sector, investing is the most common route. Gauging from the performance of some companies’ earnings results in the past couple of years, investors can expect strong numbers from some cybersecurity firms.

Cybersecurity stocks: how to trade the cybersecurity industry

The cybersecurity industry is experiencing rapid growth due to the increasing number of cyber-attacks and data breaches. As hackers become increasingly sophisticated in their attacks and technology becomes more pervasive, the need for effective cybersecurity solutions has grown. Companies and organizations of all sizes, from small businesses to large corporations, are investing heavily in cybersecurity solutions to protect their data and networks.

In the latest quarter, Qualys posted revenues of $130.8 million, up 19% year-over-year, and net income of $28.3 million. The company has more than 10,000 customers, including 70% of the Forbes Global 100. Distributed ledger technology is a decentralized ledger network that uses the resources of many nodes to ensure data security and transparency. Cybersecurity stocks, represented by the First Trust Nasdaq Cybersecurity ETF , have underperformed the broader market over the past year.

Trade Blackberry shares in a live account, or practise trading first in a demo. However, that didn’t stop the company’s shares from falling over 45% throughout the last year. In 2022, when Russia invaded Ukraine, the geopolitical tensions created enough fear of nation-backed cybercrime that U.S. President Biden publicly encouraged companies to tighten their cyber defences and invest in the sector. In the latest major release of its cloud software, there were more than 150 new features.

BB uses machine learning to design solutions, which means its capabilities are continuously evolving as threats to the industry change. Consider that the Net Promoter Score – which shows whether a customer will recommend a product – for ZS is at 80. This is more than two times the average for SaaS (software-as-a-service) companies. In the fourth quarter, revenues jumped by 39% to $1.25 billion and the net income came to $269 million. Nearly 800 customers had ARR of over $1 million, up by 115 during the past year. “I’ve spoken to dozens of customers and partners in the last few months, and they all face similar challenges,” said Udi Mokady, founder and CEO of CyberArk, on the latest earnings call.

How to invest in cybersecurity stocks

These provide for not only strong security but improved network performance. We’ve compiled a list of the nine of the best cybersecurity stocks to buy as growth in the industry ramps up. “Attacks continue to rise in frequency and are getting sophisticated,” said Tejas Dessai, AVP and research analyst at Global X. With a boost in global security spending expected this year, these cybersecurity stocks are worth a closer look. Follow Reinhardt Krause on updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.

Historically, cybersecurity was best served by firewalls, which provided a ring fence around assets that were physically located on a network. As more devices and software tools connect from outside of the traditional firewall perimeter, the importance of security monitoring tools such as VM, VMDR and XDR has increased. In many ways, vulnerability management is the foundation of cybersecurity as it provides the dashboard for monitoring all potential security gaps.

Here are some of the most popular stocks for those interested in cybersecurity trades. Zscaler has been increasing its sales throughout the last few years, posting impressive revenue growth, but remains unprofitable. Investors do seem to be turning away from such high-growth-low-profit stocks at the moment, which saw Zscaler stocks sold off by 65% throughout 2022. However, the company has had to make tough transitions, such as migrating to the cloud. The company has developed systems to detect patterns and provide insights – in massive data sets – for advanced network threats and risk assessments. It manages all IT assets for any endpoint, whether on-premises, cloud or mobile.

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As a result, Palo Alto Networks has given its security operation a serious makeover. Management says its acquisition spree is over for now, and it predicts double-digit percentage revenue growth in the years ahead. This steady growth and market leadership has helped make its stock one of the best performers among cybersecurity companies in 2022. Fortinet is another one of the big players in cybersecurity, with strong growth. In the company’s third quarter, revenue was up 33% year-over-year to $1.15 billion.

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It shouldn’t be surprising that global spending on cybersecurity is expected to exceed $170 billion in 2022 (up about 13% from 2021) and will likely continue to be a high-growth industry for years. Cybersecurity stocks are a red-hot niche of the tech industry, so knowing how to invest in them can yield some big returns in the decade ahead. Zero Trust cybersecurity models focus on internal threats, such as hackers stealing someone’s security credentials. Security firms verify the identity of network users and limit access to applications.

Global X Cybersecurity ETF

According to the Identity Theft Resource Center, the number of data breaches set a new record in 2021, with the number of incidents jumping 68% from 2020 and up 23% from the previous high in 2017. Data breaches were up another 14% year-over-year during the first quarter of 2022. Corporate America has hiked tech spending on security aiming to protect intellectual property as well as consumer privacy. Still, some computer security firms could get a boost from new federal government initiatives.

CIBR has provided a total return of -17.7% over the past 12 months, below the Russell 1000’s total return of -12.5%. A life-long gamer and tech enthusiast, he has a particular affinity for analyzing technology stocks. Muslim holds a bachelor’s of science degree in applied accounting from Oxford Brookes University. 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. Fortinet price target raised to $75 from $67 at BMO Capital BMO Capital analyst Keith Bachman raised the firm’s price target on Fortinet to $75 from $67 but keeps…

It’s only a matter of time before we’re hit with another massive cyberattack, and that’s why we’re looking at some of the hottest cybersecurity stocks to own today. SentinelOne is a relatively new cybersecurity stock, only going public via an initial public offering in June 2021. It operates a cloud-based endpoint security platform – directly competing with CrowdStrike – which means it detects and resolves cyber threats. Another reason OKTA is on this list of the best cybersecurity stocks is that the company has over 17,600 customers. In fact, one of the latest is OpenAI, which is the creator of the hugely successful ChatGPT app. The solutions include firewalls, intrusion prevention systems, data leak prevention, virtual private networks and secure web gateways.

Thoma Bravo on Oct. 11 agreed to buy ForgeRock for $23.25 a share in an all-cash deal valued at about $2.3 billion. The deal represented a 53% premium to ForgeRock’s closing share price on Oct. 10. However, even though numbers weren’t up to par, analysts at Morgan Stanley believe the pullback is a buying opportunity. “With forward estimates appropriately level set, we think this pullback provides an attractive entry point to accumulate shares in a premier SaaS security franchise,” said the firm, as quoted by CNBC. Analysts at Evercore ISI just raised its price target on PANW to $215 from $207, with an outperform rating. BMO Capital also just raised its target to $225 from $218, with an outperform rating on the stock, too.

In the longer term, more consolidated solutions for this risk may emerge. Many of the stocks in this sector have high P/E ratios, and prices can be volatile and very sensitive to quarterly growth. Moreover, with inflation in the U.S. soaring, there is a possibility of continued rate increases by the Federal Reserve, which also could hurt these stocks in the near term.

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. Some of the leading names in cybersecurity include Check Point Software Technologies Ltd. and NortonLifeLock Inc.