The 3 Best Cybersecurity Stocks to Buy in April 2024

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  • Here are some of the top cybersecurity stocks and the reasons why you should grab them. 
  • CrowdStrike (NASDAQ: CRWD): Macquarie says CRWD is one of the top cybersecurity firms best positioned to benefit from an increase in spending after the healthcare cyberattacks.
  • SentinelOne (NYSE: S): Bank of America just said, “We remain positive on SentinelOne’s competitive positioning.”
  • Global X Cybersecurity ETF (NASDAQ: BUG): It always pays to diversify at a lower cost.
Best Cybersecurity Stocks to Buy in April - The 3 Best Cybersecurity Stocks to Buy in April 2024

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We’re all sitting ducks with cyberattacks, which is creating big investment opportunities for some of the best cybersecurity stocks to buy in April.

Datacenters are still under threat of a ransomware attack despite years upon years of attacks. That includes businesses, governments, hospitals, schools, and even you. 

The attack on Change Healthcare upended patients, doctors, and pharmacists with widespread outages in systems used for billing and insurance. Disruptions to copay assistance and coupon card processing at pharmacies, in particular, have highlighted key vulnerabilities in a system on which people’s lives depend,” added NBC News.

This year, steel giant ThyssenKrupp (OTCMKTS:TKAMY) said hackers breached systems in its automotive division. All of which forced it to shut down IT systems. Thousands of AT&T (NYSE:T) customers were left without service for hours following an attack. 

The U.S. government isn’t even prepared. According to BusinessInsurance.com, “Many federal agencies are not fully prepared to respond to cybersecurity incidents, the U.S. General Accountability Office said. The report says that while 23 federal agencies’ chief financial officers have made progress in cybersecurity incident response preparedness, 20 have not met requirements.”

Worse, it’s only a matter of time before we’re hit with another massive cyberattack. Unfortunately, it’s no longer a question of if we’ll get hit again. But when – which creates even more opportunity in some of the best cybersecurity stocks to buy in April.

CrowdStrike (CRWD)

A sign with the Crowdstrike (CRWD) company logo
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Since bottoming out around $100 in early 2023, CrowdStrike (NASDAQ:CRWD) has been in a solid uptrend, last trading at $319.09. 

Helping, analysts over at Macquarie says CRWD is one of the top cybersecurity firms best positioned to benefit from an increase in spending after the healthcare cyberattacks. With an outperform rating and a price target of $370, the firm added, “We believe CrowdStrike’s best-of-breed endpoint security platform is ideally positioned to mitigate ransomware attacks.”

Even better, JP Morgan believes CRWD could see a market cap of $100 billion. All as the company continues to outperform its peers thanks to its “data-centric, AI cloud native, single agent architecture and efficient go-to-market strategy,” as quoted by Seeking Alpha. The firm has an overweight rating on the stock with a price target of $371 from $350.

Earnings haven’t been too shabby either. In its most recent quarter, the company saw adjusted EPS of 95 cents on revenue of $ 845.3 million. Analysts were only looking for 82 cents on $839.96 million. CrowdStrike expects to see adjusted EPS of 89 to 90 cents. It also expects to see revenues of $902.2 million to $905.8 million in the first quarter. Analysts were expecting adjusted earnings of 82 cents and $898.8 million revenues.

SentinelOne (S)

The logo for SentinelOne (S) is seen on on an office building.
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Another one of the best cybersecurity stocks to buy in April is SentinelOne (NYSE:S), which gapped from about $28 to $22.54, where it’s currently consolidating. Near term, I’m looking for it to refill that gap, and potentially retest $31.

While the stock pulled back after the company posted total annual recurring revenue of $724 million, which was slightly below expectations. 

It also posted new annual recurring revenue of $61 million, which was also below estimates. Guidance was also conservative, with the company expecting to see first quarter revenues of $181 million, which is below expectations for $181.5 million. 

However, analysts are out in defense of the stock.

Bank of America, for example, says, “We remain positive on SentinelOne’s competitive positioning and its near-term pathway to profitability and [free cash flow] generation. The demand remains healthy, per management, and SentinelOne remains focused on customer acquisition, upsell opportunities and achieving profitability/positive free cash flow,” as quoted by Seeking Alpha. The firm also has a buy rating on the stock with a price target of $35.

Even better, analysts at WestPark and BTIG just reiterated buy ratings on the stock, too.

Global X Cybersecurity ETF (BUG)

The logo for Global X is seen on a white background.

Or, we can diversify at a low cost with the Global X Cybersecurity ETF (NASDAQ:BUG).

At less than $30, with an expense ratio of 0.50%, the ETF holds 26 stocks, which “stand to potentially benefit from the increased adoption of cybersecurity technology, such as those whose principal business is in the development and management of security protocols preventing intrusion and attacks to systems, networks, applications, computers, and mobile devices,” says Global X.

Over the last several months, the BUG ETF exploded from about $22.50 to about $31.75. From here, we could see a potential test of $40, near-term, as the cyber situation intensifies. At the moment, the BUG ETF is consolidating just under $30, but could easily see higher highs. Some of the ETFs top holdings include Fortinet (NASDAQ:FTNT), Palo Alto (NASDAQ:PANW), Okta Inc. (NASDAQ:OKTA), and Rapid7 Inc. (NASDAQ:RPD) to name a few. What’s nice about an ETF is that it offers a good deal of exposure at less cost. 

On the date of publication, Ian Cooper did not hold (either directly or indirectly) any positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Ian Cooper, a contributor to InvestorPlace.com, has been analyzing stocks and options for web-based advisories since 1999.


Article printed from InvestorPlace Media, https://investorplace.com/2024/04/the-3-best-cybersecurity-stocks-to-buy-in-april-2024/.

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