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Top Cyber Security ETFs

best cyber security stock

However, a rough go for the stock market in 2022 and slowing revenue growth at SentinelOne has sent the stock below its IPO price. However, a cyberattack in January 2022 affected two of its customers, helping to accelerate the decline of its stock during the bear market. Even so, Okta remains in growth mode as new customers adopt its software to manage identity and access security.

best cyber security stock

According to the International Data Corporation, worldwide spending on security services is expected to grow 12% to $219 billion in 2023. The research firm estimates spending on security products and services will continue to outperform growth in overall IT spending, driven by cloud deployments and expanding privacy legislation. Banking, manufacturing, https://forexhistory.info/ professional services, and government are the industries expected to increase spending the most. Software is expected to be the largest and fast-growing technology group in 2023, with endpoint security the leading software category. American security firm Proofpoint was established in 2002 and is ranked among the top cyber security companies stock.

Cloudflare, Inc. (NYSE:NET)

User reviews have been very positive, and equally positive employee reviews suggest that KnowBe4 may be one of the best places to work in the industry. Growth has slowed to around 35% in recent quarters, but Wall Street analysts expect that to double in the coming years. Security training, of course, including a product award, and its PhishER email security product made our small business security products list too. Compared to most businesses, Check Point is more knowledgeable about online security.

  • Other cybersecurity firms with a sizable government business include Tenable, Rapid7 and CyberArk (CYBR).
  • Fortinet offers benefits like unlimited PTO, a health savings account, and a 401(k) to employees.
  • We narrowed down our selection to stocks that were the most popular among hedge funds and ranked them in ascending order of the number of hedge funds that have positions in them.
  • Both sales and earnings are critical factors in the success of a company.

It’s also easy to deploy to the millions of people working from home and the billions of machines connected to the internet. Zscaler’s stock surged during the pandemic; as its products provide a secure gateway for VPNs and cloud workload security, the company benefited from the rapid growth in the work-from-home environment. We rated Zscaler with only 1 star as recently as last September, but now we think the stock has dropped too far to the downside, and our rating has moved to 4 stars. Zscaler’s cybersecurity solutions are sold through service providers, but the company has been moving to smaller enterprise customers by ramping up its salesforce—we think this provides a longer runway for high growth.

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Fortinet is known for its firewalls but excels elsewhere as well, including in SIEM and EDR. Fortinet is a current holding in the Stock Superstars Report portfolio. It has a Momentum Score of 81, which is considered very strong, and does not currently pay a dividend.

best cyber security stock

Still, investors can look at the stock and say it’s overvalued with a forward price–earnings (P/E) ratio of over 36 times. Analysts, on average, expect the company to grow its earnings per share  at an average, annual rate of approximately 19% over the next five years. Also, many fast-growing cybersecurity firms are in the endpoint market. Their tools detect malware on laptops, mobile phones and other devices that access corporate networks. Other cybersecurity firms with a sizable government business include Tenable, Rapid7 and CyberArk (CYBR).

Cloud Security

The importance of cybersecurity in today's digital age cannot be overstated. As pointed out in one of our articles, cyberattacks are increasing across the globe. A report by Nasdaq shows that cyberattacks rose globally throughout 2020, relative to the levels seen in 2019 and 2018. As businesses go digital, their vulnerability to cyberattacks is increasing, and cybersecurity spend is going up.

The big question is whether the banking crisis will slow venture capital investment in the sector. Microsoft, already a strong rival, aims to integrate artificial intelligence tools into its security platform. Called Microsoft Security Copilot, the platform uses a new AI assistant.

Top 42 Cybersecurity Companies To Know in 2023

It competes with CrowdStrike since it runs a cloud-based endpoint security platform. Market acceptance of its ability to identify and address cybersecurity risks is high. Still, this company comes in a leading position in the list of best cybersecurity stocks. Besides https://bigbostrade.com/ investment, if you are also looking for a long-term career as a Cybersecurity professional, begin your journey with the best Cybersecurity courses. Zscaler has seen outstanding success in recent years, with its revenue growth nothing short of impressive.

  • Microsoft may not be the first company that comes to mind when considering companies to purchase the  best cybersecurity stocks.
  • Cybersecurity companies offer products and services to companies in areas of network security, data security, cloud security, application security and increasingly endpoint security (i.e. secure remote access).
  • So the industry now has a new term for the infrastructure that supports distributed workers and branch offices.
  • Still, investors can look at the stock and say it’s overvalued with a forward price–earnings (P/E) ratio of over 36 times.
  • How that shakes out is anyone’s guess, but one that security customers of both companies will certainly be watching.

It provides a variety of cybersecurity services, including cloud protection, network sandboxing, and email protection. Several data protection systems, such as incident response, eDiscovery, and secure communication, are included in Proofpoint's security-as-a-service platform. Since its beginnings as an email security provider, the company's clientele now comprises large and mid-sized businesses. Another recent pure-play cybersecurity startup to debut on the stock market is SentinelOne. SentinelOne's initial public offering (IPO) in June 2021, the largest ever for a cybersecurity company, raised $1.2 billion in cash and valued the company at $10 billion. The stock has fallen below its IPO price due to SentinelOne's slowed revenue growth and a difficult year for the stock market in 2022.

This site is not intended for use in jurisdictions in which the trading or investments described are prohibited and should only be used by such persons and in such ways as are legally permitted. Your investment may not qualify for investor protection in your country or state of residence, so please conduct your own due diligence. This website is free for you to use but we may receive commission from the companies we feature on this site. Its solutions enable its customers to secure their workforces and student populations; and make their partner networks more collaborative.

3 Top Cybersecurity Stocks to Buy in April - The Motley Fool

3 Top Cybersecurity Stocks to Buy in April.

Posted: Wed, 05 Apr 2023 07:00:00 GMT [source]

Microsoft may not be the first company that comes to mind when considering companies to purchase the  best cybersecurity stocks. However, Microsoft is an attractive option if you want exposure to the industry in a way that allows you to sleep soundly regardless of what is occurring in the market. However, the cybersecurity division is responsible for a rising company earnings. The cloud-based Office 365 software can also incorporate all the business' security measures. Furthermore, the corporation expanded its cybersecurity industry through acquisitions using its sizeable war chest.

Its earnings per share came in at 29 cents, which bested analysts average estimate of 26 cents. Some cybersecurity firms aim to use artificial intelligence to get an edge on hackers. Earlier, Thoma Bravo acquired Ping Identity Holdings (PING) for $2.8 billion. Thoma Bravo also has acquired cybersecurity https://investmentsanalysis.info/ firms SailPoint Technology, Proofpoint, Sophos and Barracuda. The private equity firm has invested in cybersecurity startups, such as Illumio. "The maturation and proliferation of AI tech poses as both a headwind and tailwind to the cyber industry," Jefferies analyst Brent Thill said in a report.

Everest Appoints FBI Cyber Veteran Don Good as Chief Information Security Officer - Yahoo Finance

Everest Appoints FBI Cyber Veteran Don Good as Chief Information Security Officer.

Posted: Mon, 26 Jun 2023 20:15:00 GMT [source]

As a result, many legacy security vendors are now repositioning themselves as providers of next-generation security solutions that leverage emerging technologies such as artificial intelligence, machine learning and automation. This shift aims to enable them to remain relevant in an increasingly complex and dynamic security landscape. Legacy security vendors refer to companies that have been providing traditional security solutions for a long time, typically before the advent of cloud computing and the widespread use of mobile devices. Cloud security involves a combination of physical, administrative and technical controls that safeguard cloud infrastructure, network connections and data. Some standard cloud security measures include encryption, access controls, security monitoring and logging, intrusion detection and prevention systems and vulnerability management. Thanks to its diversified business model and experienced management, the company boasts one of the top margin profiles in the sector, with double-digit sales and earnings expansion over the past several years.

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