- Cybersecurity stocks have been on a roller coaster ride this year. It is difficult to determine which ones are good investments and which ones are not with the volatile market. But, below are five cybersecurity stocks poised for growth in the market.
- Cloudflare (NYSE:NET): The company has up to 25 million internet properties, and the number continues to grow daily.
- Palantir (NYSE:PLTR): Analysts and investors have been critical of the software company due to its unbalanced reliance on U.S. government contracts, but this will now change as it concentrates on commercial clients.
- Crowdstrike (NASDAQ:CRWD): The company reported an increase in revenue for the fourth quarter of 66% from the previous year.
- Palo Alto Networks (NASDAQ:PANW): Palo Alto Networks is now one of the leading cybersecurity providers to businesses. They have been around for a while and remain competitive even as they continue to grow.
- Fortinet (NASDAQ:FTNT): Fortinet has a better reputation for security than other hardware manufacturers. Organizations that need servers or data centers trust them because they’ve shown they can offer top-notch protection, which is crucial in today’s world.
Many investors are looking for safe havens in the market, and some of them have found cybersecurity stocks as a good investment option. These stocks are promising and provide high growth, excellent profits, and a strong balance sheet.
This article will discuss five cybersecurity stocks with great potential for success in a growing market. The global cybersecurity market grows yearly, with over $345 billion expected to be collected by 2026 for businesses and consumers alike.
Therefore, this is a market segment you cannot afford to ignore.
|PANW||Palo Alto Networks||$582.33|
Cybersecurity Stocks: Cloudflare (NET)
Cloudflare is a global CDN and DDoS mitigation service provider. It provides email and web hosting services for companies who want to take advantage of their features but don’t want to run their servers or build their infrastructure.
Cloudflare’s DNS service helps speed up website load times by caching frequently accessed websites so that users can access them faster. Cloudflare has data centers across the globe in places like North America, Europe, and Asia, with different regions handling traffic. The company boasts 25 million internet properties, and the number is growing daily.
In 2021, revenues grew by 52%, while large customer growth was 71%. Cloudflare’s CEO said that “we achieved 50% or greater, compounded growth” last year. They did this five years in a row. In offering a bullish take on the stock, InvestorPlace’s Chris Markoch said that it’s better to take a long-term view if you want to invest in this one.
Palantir is a software company that provides data analysis, predictive policing, and other government and commercial applications.
It has provided services to many U.S. law enforcement agencies, including the Federal Bureau of Investigation (FBI), Drug Enforcement Agency (DEA), Central Intelligence Agency (CIA), Immigration and Customs Enforcement (ICE), as well as state police forces.
Palantir debuted with much fanfare, and that’s why their stock shot up. However, the software company could not hold onto its initial momentum. Shares are down substantially from their 52-week high, so it could be good to purchase now rather than wait for more optimism to return and shares to rise again.
In addition, the company is great for investors on the lookout for growth stocks. For the full year, total revenue was $1.54 billion in 2021 — up 41% from the prior year. In 2021, Palantir’s commercial revenue was up 34% over the previous year, and in total, it reached $645 million. Commercial success is a critical metric for the company since investors want it to diversify its customer base, which U.S.-based government agencies currently dominate.
Cybersecurity Stocks: CrowdStrike (CRWD)
CrowdStrike is a cybersecurity company with a focus on threat intelligence. They use AI to generate threat intelligence that security teams can detect, investigate, and respond to cyber threats.
CrowdStrike provides a range of services such as endpoint protection, threat intelligence, managed security services, and managed security consulting. The company also offers a cloud-based platform that allows customers to manage their security operations from anywhere.
CrowdStrike uses AI technology through its Security Operations Center (SOC) to detect and investigate cyber threats in real-time.
CrowdStrike’s SOC also uses an automated process called Threat Intelligence Feeds (TI Feeds) to provide threat intelligence for customers and partners across the globe. This ensures that CrowdStrike can offer real-time protection against emerging threats at scale.
Although the stock has not done well in the last six months, it is a proven performer with several quarters of success behind it. In reporting its fourth quarter and fiscal year 2022 results, the company revealed its total revenue was $1.45 billion, a 66% increase compared to the year-ago period.
Palo Alto Networks (PANW)
Palo Alto Networks is a cybersecurity company that provides solutions for protecting networks and applications. The company has been steadily expanding its product, with its offerings looking to integrate security, networking, and cloud services with its many features.
The company emerged as a leader in security after its initial release. It quickly became the leading global provider of firewall and intrusion prevention solutions. With Palo Alto Networks, businesses can protect their most important assets, such as customer data, intellectual property, and mission-critical resources. The company’s solutions have remained very popular. However, Palo Alto Networks elaborates on its initial offerings and has evolved into something greater.
Cloud-based systems let the company focus on its highly profitable platform, enabling it to acquire smaller businesses. The company is focusing more and more on this type of infrastructure. Palo Alto Networks is now a leading cloud provider of cybersecurity; this legacy company has been around for a while and remains competitive in the field.
Cybersecurity Stocks: Fortinet (FTNT)
Fortinet provides security solutions to enable organizations to connect, manage, and protect their digital assets safely. Their products include firewalls, intrusion prevention systems, anti-malware, web application firewalls, etc.
A leading cybersecurity corporation, the company has grown in tandem with what a growing industry like cybersecurity needs. They’ve committed to becoming one of the largest companies in the world, with continuing rates of double-digit growth.
This company is experienced in cybersecurity and provides firewall services to many organizations. They can generate more revenue because they have the best hardware that others turn to when building servers or data centers, and many organizations trust them. Its success is also evident in its stock price, which has grown 695% in the last five years.
On the publication date, Faizan Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.