- A10 Networks (ATEN) – A10 Cloud’s infrastructure is designed to integrate with the existing IT infrastructure of potential customers, making it easier for it to migrate its workloads to the cloud.
- CACI International (CACI) – CACI International is a global leader in developing technology solutions for the defense and intelligence communities.
- Crowdstrike (CRWD) – Although the company may be in the red, it acts cleverly by acquiring a cybersecurity service.
- Microsoft (MSFT) – Microsoft has been marketing its acquisitions of RiskIQ and CloudKnox Security to increase its cybersecurity credentials.
- Alphabet (GOOGL, GOOG) – Earlier this year, Google acquired Siemplify for a reported $500 million to boost its cybersecurity offerings.
- Fortinet (FTNT) – Fortinet is one of the most profitable companies in its field.
- Splunk (SPLK) – Splunk is a software platform that provides real-time information on any digital activity, including data logs and user interactions.
Cybersecurity companies are also becoming more diversified by offering solutions in several different verticals, such as cyber defense and cyber intelligence. The market is expected to continue its upward momentum as long as these companies innovate and deliver on their promises. It’s always smart to invest in cybersecurity stocks that are rising in value.
In addition, since the start of the year, cybersecurity stocks have seen significant pressure, just like other tech stocks. The combination of interest rates hikes, the Russian war in Ukraine, and other factors have led to a market sell-off.
For risk-tolerant investors, it offers them the rare opportunity to take advantage of these stocks at a low point in their price trajectory.
Cybersecurity Stocks to Buy: A10 Networks (ATEN)
A10 Networks (NYSE:ATEN) offers on-premises, multi-cloud, and edge cloud environments. A10’s cloud architecture integrates with the existing IT infrastructure, making it easier for customers to migrate their workloads to the cloud.
At the same time, it allows companies and individuals to secure their work and ensure that they don’t fall prey to Web-based threats while also keeping their network infrastructure safe.
FY 2021 saw the company’s revenue total $250 million, up 10.9% year-over-year. GAAP net income for the year was $94.9 million, or a generous $1.19 per diluted share, compared with $17.8 million last year or 22 cents per share. Sales of security devices are up by a staggering 22.2% in the fourth quarter.
Shares of the cybersecurity stock have been down a lot in the last three months. They are trading at 11x trailing earnings per share, and many investors look at this as a steal.
Caci International (CACI)
Caci International (NYSE:CACI) is a global leader in developing technology solutions for the defense and intelligence communities. It has grown its business by leveraging its software-as-a-service (SaaS) expertise and mobile and network security.
Cloud-powered solutions are a growing trend among organizations that want to gain more control over their data, especially those looking for ways to reduce costs. Therefore, the company is riding high on these secular tailwinds.
In the fourth quarter and the full year of 2021, good results were delivered by the company. Annual revenues grew $6 billion, or 6% from last year. Annual net income of $457.4 million, with a diluted EPS of $18.30. The company’s annual cash flow was $537.1 million, a 22% increase from last year.
CACI has been rising significantly in the last few years but is recently not among the top performers. However, it’s still relatively undervalued and still worth considering.
The stock is trading at 15.9x forward P/E, making it expensive. However, the premium is deserved considering its latest performance.
CrowdStrike (NASDAQ:CRWD) is a cybersecurity firm that uses endpoint security, cloud security, managed security services, and threat intelligence to protect organizations from cyber threats.
CrowdStrike’s endpoint protection software offers complete visibility and control of what’s happening on your network. It provides real-time protection against unknown threats as well as known malware.
CrowdStrike also offers identity protection. This feature allows users to secure their identities if a data breach or attack compromises them.
Although the company may be in the red, it acts cleverly by acquiring a cybersecurity service. Crowdstrike is not only trying to save money by seeking out better systems and services but also, with acquisitions like these, it is becoming very attractive to other businesses.
CrowdStrike arguably has the potential for growth which is not reflected in its current share price. Shares are down 14.30% in the last six months.
Cybersecurity Stocks to Buy: Microsoft (MSFT)
Microsoft (NASDAQ:MSFT) is a diversified company that has its fingers in many different pies. It is a software company, an IT services provider, and a gaming company.
Microsoft has been around for decades, and it has seen many changes in the industry and the world. It has been able to adapt to the times and stay relevant throughout its existence.
According to Forbes, the Microsoft brand is one of the most trusted brands globally, and it is one of the top five most valuable brands worldwide.
However, Microsoft does not immediately come to mind when you talk about cybersecurity. The company is growing significantly, and in the last year, it has surpassed $15 billion. This is a 45% jump from the previous year (or 12 months).
Microsoft has been marketing its RiskIQ and CloudKnox Security acquisitions to increase its cybersecurity credentials. The company has also been integrating more security tools into its cloud-based Office 365 software that can help to protect your business from the damaging effects of cyber attacks.
Microsoft is a company that has been around for many years, with a portfolio that has benefited investors and consumers alike. In the past few years, Microsoft has focused on several sectors, making it an all-weather stock. Based on Microsoft’s current valuation, investors are expecting continued innovation and growth. This is a much more favorable expectation than the P/E ratio would suggest.
Alphabet (GOOGL, GOOG)
Google has a diversified portfolio of products and services. It has made a name for itself in the search engine field. But it is also diversifying its portfolio to include other areas such as AI, advertising and cloud computing.
Google is one of the leading companies in AI and machine learning. Its algorithms are constantly getting better and more accurate. Google’s Assistant is a pivotal step for the company. With voice recognition technology, users can have a conversation with their devices. Plus, it will be able to answer certain queries more efficiently and give you information as soon as you need it.
Like Microsoft, Google does not get much recognition for its cybersecurity initiatives. Earlier this year, Google purchased Israeli cybersecurity company Siemplify for a reported $500 million. That will help the company build on an already impressive product portfolio.
Google’s stock is a great investment for early investors. The company is on the rise since 1998 and has achieved an impressive market capitalization of over $1 trillion. Importantly, Alphabet is gearing up for a 20-for-1 stock split scheduled on July 15. We have covered the split extensively over the last few weeks, so check out the coverage if you want to know more about how to play this.
Fortinet (NASDAQ:FTNT) is a prominent global cybersecurity company with offices and clients worldwide. It provides security services organized to make sure companies and their networks are safe. Its most popular product, FortiGate, can be installed on any network for seamless security surveillance and protection.
As one of the first companies to develop an enterprise-grade security solution, Fortinet offers its customers an integrated suite of security solutions. These include firewalls, intrusion prevention systems (IPS), network access control (NAC) devices, web application firewalls (WAF), email security appliances, and next-generation firewall services.
The right security company can provide you with great growth in both sales and profit. Fortinet is one of the most profitable companies in its field, so it is the right fit for an investor looking to gain exposure to this sector.
Cybersecurity Stocks to Buy: Splunk (SPLK)
Splunk (NASDAQ:SPLK) is a software platform that provides real-time information on any digital activity, including data logs and user interactions. It helps organizations monitor digital activity and identify patterns and anomalies to orchestrate responses to data breaches.
Splunk is a popular digital monitoring tool organizations use for organization-wide operations like customer service calls or financial transactions. They use Splunk’s AI capabilities to detect anomalies in the data they collect, which helps them find out what is going on with its customers and employees.
Data analytics is becoming a key field in the overall IT management of a company. Companies use data analytics to increase their efficiency by focusing on what they do best – making decisions based on facts and information from their data sources. It lends itself naturally to the field of cybersecurity.
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.