Join 20,000+ Traders & Investors by getting our FREE weekly Sunday Cheat Sheet email. Get key market news and events before everyone else. Click Here to See if you Qualify.
The rise in cyber threats and the increasing digitization of businesses create a growing demand for robust cybersecurity solutions. As more organizations prioritize data protection, the cybersecurity industry is poised for significant growth. Recent high-profile cyberattacks have highlighted the criticality of cybersecurity, leading to increased awareness and investment. Investing in cybersecurity stocks allows investors to capitalize on the sector’s expanding market and long-term growth prospects. Here are six stocks in the cybersecurity space that investors should look at:
Invest in These 6 Cybersecurity Stocks to Protect Your Finances
- Cisco Systems
- Crowdstrike Holdings
- Check Point Software
- Profitable Stock Traders are Using This Tool to “Hack” the Markets
- 10 Industries That Will Make The Most Millionaires In The Next 5 Years
- 8 Cryptos Set to Shoot to the Moon in 2023 – One Small Investment, One Giant Leap for Your Wallet
- 10 Stocks in Bill Gates Stock Portfolio Smart Investors are Buying
- Top 28 Best Stock Market And Investing YouTube Channels Right Now
- Top 6 Personality Traits Of Highly Successful Investors And Traders
Cisco Systems designs develops, and sells cutting-edge networking hardware, software, and telecommunications equipment, to businesses worldwide. Despite its remarkable accomplishments and undeniable market dominance, Wall Street has often underestimated Cisco. For instance, the numbers from its latest quarter showed that revenue surged by an impressive 14% yearly to $14.6 billion, surpassing market analysts’ expectations by $210 million. You might assume that such stellar growth rates would send Cisco’s stock price soaring, but reality tells a different tale. Despite the remarkable financial performance, the stock experienced a modest uptick after the report and currently languishes more than 20% below its all-time high in December 2021. Cisco might not be the skyrocketing star in your portfolio, but its undervalued nature and generous dividend yield are formidable shields against market volatility. With a dividend yield of over 3%, you can count on a steady stream of passive income.
CrowdStrike unveiled its Q1 2023 financial results in May, triggering a significant market reaction. Following the earnings release, the stock plummeted by over 10% in after-hours trading. However, by June 16, the stock had rebounded to its pre-earnings price, showcasing its resilience. Notably, CrowdStrike’s stock has experienced an impressive 52% year-to-date increase. The temporary dip can be attributed to the guidance provided, which was mainly in line with market expectations and did not surpass them significantly. Considering the stock’s recent surge, some traders may have opted to sell to secure their profits. Nonetheless, CrowdStrike’s Q1 revenue reached a commendable $692.58 million, marking a remarkable 42% year-over-year growth and surpassing the consensus by $16.35 million or 2.4%. Over the past four years, CrowdStrike has witnessed a tenfold increase in its customer base. Revenue growth has been equally impressive, with annual recurring revenue surging from $71 million to $2.74 billion within six years. The secret behind CrowdStrike’s triumph lies in its innovative platform approach. The company continuously expands its platform with new modules and entices customers to adopt them. 62% of customers are utilizing five or more products, while 40% have incorporated six or more, and an impressive 23% are leveraging seven or more products from CrowdStrike’s portfolio. This one has to stay on your radar.
SentinelOne is the poster child of a volatile stock. Since its IPO in July 2021, the stock has hit a high of $66.40 before an almighty fall. It closed June 16, 2023, at $16.65, over 50% below its issue price of $35. SentinelOne sets itself apart from other cybersecurity companies with its Singularity extended detection and response (XDR) platform, leveraging AI algorithms to automate threat detection for faster, more accurate, and scalable results. Over the past three years, the company has witnessed remarkable growth in revenue, customers, and annual recurring revenue (ARR). It consistently attracts larger customers, maintains a dollar-based net revenue retention rate above 100%, and improves year after year. Although SentinelOne’s Q1 fiscal 2024 revenue surged by 70% YoY to $133 million, it fell short of analysts’ expectations by $3 million. Additionally, conservative guidance for the next quarter caused a 38% decline in the stock. The coming quarter is projected to see a 38% YoY revenue growth, compared to 124% in the same period last year. While the stock may continue to experience turbulence, patient investors can seize the opportunity to acquire it at an attractive price.
Just under two years ago, Zscaler had around 200 customers committing to over $1 million of annual contract spending. Fast forward to early 2023, and that number has surpassed 400. The company’s success is further validated by average order renewals at 125% of their previous value in Q3, demonstrating the value it provides to existing clients. While Zscaler has made progress in reducing operating losses, which stood at 16% of sales for the first three quarters of fiscal 2023 compared to 32% the previous year, economic uncertainties make those losses appear riskier. As enterprises exercise caution in spending, Zscaler is experiencing longer lead times for contract closures, affecting its fiscal fourth-quarter close rate despite a robust negotiation pipeline. However, cybersecurity remains a crucial service, and deal scrutiny has increased but has yet to impede growth significantly. Management anticipates sales growth of approximately 36% to reach $430 million, which is still commendable even without attributing it solely to the state of the economy. As businesses expand, it is natural for hypergrowth in revenue to moderate.
Check Point Software
Check Point Software, an American-Israeli enterprise, offers comprehensive hardware and software solutions for IT security, covering network security, endpoint security, cloud security, mobile security, data security, and security management. As cybercrimes continue to rise, companies increasingly recognize the importance of preventive measures. In this regard, CHKP stands out as a safe investment option. Despite some setbacks in the broader tech industry, including cybersecurity, Check Point maintains solid financial metrics, indicating operational efficiency and fiscal stability. Although Check Point’s revenue only grew 4% year over year to $566 million, falling short of the consensus estimate of $569 million, its subscription business experienced significant growth. It increased by 13% yearly to $228 million, outpacing the overall business growth rate. This demonstrates the company’s ability to capture opportunities and adapt to evolving market demands.
Cybersecurity firm Cloudflare’s stock movements from May 2023 can give you an idea of how cybersecurity stocks behave in stock markets. The company reported its Q1 2023 earnings in the last week of April. It said growth would slow down and reduce its full-year guidance, much like other stocks on this list. Markets reacted badly to the news, and Cloudflare stock tanked over 20% in a single day. However, since then, the stock has risen over 50%. And a key point for potential investors in Cloudflare is the growth of AI’s share in its revenue. Cloudflare CEO Matthew Prince pointed this out in the earnings call when he said AI growth surprised everyone. It’s showing growth north of 20% from both large and small customers.
Profitable Stock Traders are Using This Tool to “Hack” the Markets
This tool is helping traders beat the market compared to those who have no idea what is. Here are the Top 28 Stock Trading Discord Servers Right Now.
10 Industries That Will Make The Most Millionaires In The Next 5 Years
If you are not paying attention to these 10 industries, you are about to miss out on the next boom of millionaires. See the 10 Industries About to Make the Most Millionaires in the Next 5 Years.
8 Cryptos Set to Shoot to the Moon in 2023 – One Small Investment, One Giant Leap for Your Wallet
These are 8 cryptocurrencies you need to know about before you miss out on the next boom. 8 Cryptos Set to Shoot to the Moon in 2023 – One Small Investment, One Giant Leap for Your Wallet
10 Stocks in Bill Gates Stock Portfolio Smart Investors are Buying
We share the top 10 stocks that Bill Gates owns that smart investors are buying right now. 10 Stocks in Bill Gates Stock Portfolio Smart Investors are Buying
Top 28 Best Stock Market And Investing YouTube Channels Right Now
The best investors are always learning. YouTube is one of the best free resources to learn from experts. Here are the top 28. Top 28 Best Stock Market and Investing YouTube Channels Right Now
Top 6 Personality Traits Of Highly Successful Investors And Traders
From Warren Buffett to Ray Dalio. We breakdown the top 6 common traits the most successful investors and traders have. Top 6 Personality Traits Of Highly Successful Investors And Traders
This Options Discord Chat is The Real Deal
While the internet is scoured with trading chat rooms, many of which even charge upwards of thousands of dollars to join, this smaller options trading discord chatroom is the real deal and actually providing valuable trade setups, education, and community without the noise and spam of the larger more expensive rooms. With a incredibly low-cost monthly fee, Options Trading Club (click here to see their reviews) requires an application to join ensuring that every member is dedicated and serious about taking their trading to the next level. If you are looking for a change in your trading strategies, then click here to apply for a membership.