Cybersecurity issues are only getting worse, creating opportunities for some of the best cybersecurity stocks. Unfortunately, many of us, including businesses and governments around the world, still aren’t prepared. And it’s not as if the CrowdStrike (NASDAQ:CRWD) issue helped much. Even with fixes in circulation, there’s an issue, as CNBC said:
“As organizations scramble to patch vulnerabilities caused by CrowdStrike’s massive IT outage on July 19, hackers are exploiting the situation by impersonating CrowdStrike in phishing campaigns, posing as legitimate support sources for affected businesses to gain unauthorized access to corporate networks.”
Not helping, human error remains the most “common infiltration method,” CNBC added.
Until such issues are taken care of, you may want to invest in some of the best cybersecurity stocks. Let’s evaluate three of them:
Check Point Software (CHKP)
Check Point Software (NASDAQ:CHKP) is a buy on weakness.
After rallying from a low of $147.50 to $185, CHKP did pull back to $175 thanks to broad market weakness. But I’d use that drop as an opportunity to buy. For one, the company’s earnings per share was up 8% year-over-year to $2.17. Revenue was up about 7% to $627 million. Security subscriptions jumped 14% to $271.7 million.
“Check Point delivered an outstanding second quarter as customers continued to embrace the AI-driven, cloud-delivered Infinity Platform to achieve the highest levels of security,” added Gil Shwed, founder and CEO.
Better, after buying back about 2.1 million shares, the company just authorized a $2 billion expansion of that program. Plus, it will be authorized to buy back shares up to $325 million in each quarter moving forward.
Again, I’d use the recent weakness in CHKP as an opportunity to buy.
Zscaler (ZS)
Another one of the best cybersecurity stocks to buy is Zscaler (NASDAQ:ZS).
After pulling back from about $210 to a low of $156.61, the stock appears to have caught double bottom support dating back to late May. It’s also over-extended on RSI, MACD and Williams’ %R. From its last traded price of $167, I’d like to see it initially retest $180.
Helping, analysts at Raymond James just initiated coverage of ZS with a market perform rating, noting, “We acknowledge Zscaler’s leading position in one of the fastest growing segments of cybersecurity, SASE, and this has resulted in an elite financial profile.”
The firm also believes the company’s total addressable market could nearly double from $22 billion to $41 billion by 2028 thanks to the technologies ZS offers. That includes its flagship product, Zscaler Internet Access and Zscaler Private Access.
In addition, as I noted on July 17, the company just unveiled multiple innovations to its “AI Data Protection Platform that leverages the world’s largest security cloud and the power of AI.”
iShares Cybersecurity and Tech ETF (IHAK)
Or, if you want to diversify at a lower cost, there’s the iShares Cybersecurity and Tech ETF (NYSEARCA:IHAK). With an expense ratio of 0.47%, the oversold ETF trades at $44 and offers access to 34 cybersecurity and tech holdings.
With exposure to cyber security and technology, including cyber security hardware, software, products and services, some of its top holdings include SentinelOne (NYSE:S), Check Point, CACI International (NYSE:CACI), Juniper Networks (NYSE:JNPR) and Akamai Technologies (NASDAQ:AKAM).
On the date of publication, Ian Cooper did not have (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.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.
