Expedia Inc’s (NASDAQ:EXPE) subsidiary, Orbitz (orbitz.com) was recently hit by a security breach. Hackers reportedly had access to customer’s information from 880K payment cards used on its consumer platform as well as its partner’s platform where Orbitz is used as a booking engine.
Reportedly, cyber attackers could access card user’s names, phone numbers, emails, date of birth and billing addresses in the breach that might have taken place between Jan 1, 2016 and Jun 22, 2016 on consumer’s platform and between Jan 1, 2016 and Dec 22, 2017 on the partner’s platform.
However, the travel booking site confirmed that the social security numbers of U.S. customers have not been affected.
The breach has affected its partner American Express as well which reported that the incident could include the information of customers who booked during that specific time period.
Since Mar 20 (when the incident was reported) Expedia shares have declined 3%. In the past year, shares have lost 16.2%, as compared with 61.4% rally of the industry it belongs to.
Currently, Expedia carries a Zacks Rank #5 (Strong Sell).
Cyber Crime in Focus
The latest cyberattack proves that most of the organizations across the world lack proper cyber security measures. Both Travel and hotel industry are correlated and are grappling with challenges pertaining to cyber-crimes.
The latest breach in the travel industry follows a similar kind of hack that happened with InterContinental Hotels Group and Hyatt Hotels Corp last year.
Equifax, an information services provider, which helps customers in making better credit and marketing decisions, also faced data breach last year.
These incidents have clearly underscored the fact that a customer’s payment card information is highly prone to hacking.
Further, ransomware attacks are fast hitting the headlines post the WannaCry and Petya attacks that happened in May and June 2017, respectively.
Cybersecurity Stocks on Growth Trajectory
The alarming rise of cyber-crime across the world has benefited the cyber security stocks courtesy of growing demand for security products.
Per a market research firm, Markets and Markets’ report, the cybersecurity market is expected to grow at a CAGR of 11% between 2017 and 2022 and to reach $231.94 billion by 2022.
Out of the innumerable players in the industry, we have picked four stocks which have the potential to make the most out of this opportunity. They are: Imperva Inc (NASDAQ:IMPV), Qualys Inc (NASDAQ:QLYS), Mantech International Corp (NASDAQ:MANT) and Fortinet Inc (NASDAQ:FTNT).
Cyber-Security Stocks in Focus Post Expedia-Orbitz Hack: Imperva Inc (IMPV)
Imperva Inc (NASDAQ:IMPV) is a developer of protection software and services for business applications and databases and offers innovative technology to give full audit accountability and separation of duties to meet regulatory compliance. The company sports a Zacks Rank #1 (Strong Buy).
Moreover, the company topped the Zacks Consensus Estimate in the trailing four quarters by delivering an average positive earnings surprise of 193.84%.
Currently, Imperva’s long-term earnings growth rate is pegged at 25%.
Qualys flaunts a Zacks Rank #1 and its long-term earnings growth rate is 17%.
ManTech sports a Zacks Rank #1 and its long-term earnings growth rate is 8%.
Fortinet carries a Zacks Rank #2 (Buy). Long-term earnings growth rate is currently 16.75%.
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