If you’re considering what to invest in now and when to invest, cybersecurity stocks should be on the top of your list. As more businesses move online, cyber thieves pose an increasing threat. This is one reason why investors want to locate and invest in the finest cybersecurity stocks.
There are numerous cybersecurity firms that offer vital assistance and services to organizations that operate online and via electronic communication networks.
The following are some of the greatest cybersecurity stocks to consider this year. Zscaler (NASDAQ:ZS), Fortinet (NASDAQ:FTNT), and Palo Alto Networks (NASDAQ:PANW) are all cybersecurity firms that specialize in distinct areas of security. Essentially, they are all concerned with protecting data and systems from unauthorized users.
Because it is a popular stock sector, individual firm share prices may be more volatile than those of other blue-chip stocks.
Zscaler was created in 2007 and is now a publicly traded cybersecurity startup. It is presently traded on the Nasdaq exchange. This year, the cloud-based information security company has a market capitalization of more than $15 billion, with over 100 data centres worldwide serving customers in 185 countries.
The company’s services are also becoming more popular. Zscaler is used by over 450 firms on the Forbes 2,000 list and is an authorized partner for Microsoft Office 365. This figure is only expected to rise, as the world becomes increasingly vulnerable to cybercrime.
Zscaler generated more than $125 million in revenue during the last four quarters. Revenue increased by 60% year on year to $176.4 million in the most recent quarter. Nonetheless, the company’s net loss has been increasing, owing to its concentration on growth rather than profitability.
This means that they are constantly investing in marketing, growth, and acquisitions — a clear long-term strategy. This is reflected in the company’s share price, which is currently lower than its all-time high.
Fortinet is one of the oldest cybersecurity companies, having been in operation since 2000 and amassing a market capitalization of more than $45 billion. The company creates and offers a wide range of cybersecurity products and services. This comprises firewalls, anti-virus software, and endpoint security components, among other things.
Investors cheered the company’s recent results report, which showed a rise in revenue and raised future projections. The corporation has also pursued an ambitious expansion strategy, closing more than 65 transactions last year, including a $75 million investment in Linksys.
Fortinet has become a top cybersecurity stock for investors due to the company’s strengthening fundamentals and aggressive expansion plan.
The price has been on a rapid increase since 2016, with the price expected to accelerate during the 2020 pandemic. With prices this high, some investors may exercise caution. These types of market situations may be more suitable for traders attempting to trade momentum.
3. Palo Alto Networks
Palo Alto Networks, founded in 2005, is a multinational cybersecurity corporation. Revenues surpassed $3 billion last year, as the company served 70,000 businesses in over 150 countries. The company was ranked eighth on the Forbes Digital 100 list, and its clients include 85 of the Fortune 100.
The company’s primary product offerings are upon network security, advanced firewalls, cloud security, and endpoint protection, among other niches. Palo Alto Networks also runs Unit 42 — an advanced threat intelligence team dedicated to uncovering new cyber threats and collaborating with the FBI.
Palo Alto Networks has a proven track record of delivering consistent sales and shareholder returns. It’s a popular corporation for investors because it’s the longest-running player in the field. This is especially true given the enormous dividend and stock buybacks granted to investors in recent years.