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The cybersecurity companies shown below are all listed on the NASDAQ and NYSE, and had market caps of less than US$400 billion at the time of publication. The list from eSecurity Planet features 20 privately held and publicly traded companies, as well as 22 honorable mentions across a range of stock exchanges. The firm employed criteria such as user reviews, product features and benefits, analyst reports, independent security tests and use cases to evaluate companies in the cybersecurity sector. Cybercrime is a growing concern, and it’s estimated that cyber criminals cost businesses US$10.3 billion in 2022. Here are the top three cybersecurity stocks with the best value, the fastest growth, and the most momentum. In a recent initiation on cybersecurity stocks, Goldman Sachs analyst Gabriela Borges pointed to long-term trends.
The stock is down 7.95% since the results and currently trades at $47.38. The stock is up 8.09% since the results and currently trades at $135.02. Zscaler achieved the strongest analyst estimates beat and highest full year guidance raise among its peers. The stock is https://g-markets.net/helpful-articles/how-to-be-a-profitable-forex-trader/ down 23.3% since the results and currently trades at $102.92. However, it’s essential to do your research before investing to ensure you know what you’re buying and the potential risks. IronNet has the biggest market cap on this list, with a whopping $35.06 million.
Companies that monitor cloud-based operations, as well as those that manage web content and apps, are also increasingly important to the online security of a company. CrowdStrike’s software uses machine learning (a type of artificial intelligence) to detect security breaches and hunt down threats. It’s also easy to deploy to the millions of people working from home and the billions of machines connected to the internet.
CrowdStrike
It uses self-learning artificial intelligence tools to fight against cyber-attacks in real time. Ontario-based Magnet Forensics is a data analytics company that aids government agencies involved in investigating cybercrimes. It has a host of products that help security agencies investigate fraud, prevent IP theft, track down cyber criminals and look into employee harassment. Although it is a Canada-based, and Toronto-listed company, it derives most of its revenue from U.S. markets.
Darktrace has denied the allegations and hired auditor EY to review its finances. Trade Blackberry shares in a live account, or practise trading first in a demo. So, it’s important to read up on the risks of CFDs, and how to mitigate them. In 2022, when Russia invaded Ukraine, the geopolitical tensions created enough fear of nation-backed cybercrime that U.S. President Biden publicly encouraged companies to tighten their cyber defences and invest in the sector. The industry has been on the rise ever since the creation of the internet, but it’s boomed since the Covid-19 pandemic began and remote work became essential.
The company’s software and hardware allows for sophisticated network security, secure access service edge (SASE) and cloud security. Qualys has been bolstering its AI capabilities, which should help with growth – and keep QLYS among the best cybersecurity stocks. In October, the company acquired the assets of Blue Hexagon, “an AI/ML innovator of Cloud Threat Detection and Response solutions,” according to the press release.
As more devices and software tools connect from outside of the traditional firewall perimeter, the importance of security monitoring tools such as VM, VMDR and XDR has increased. In many ways, vulnerability management is the foundation of cybersecurity as it provides the dashboard for monitoring all potential security gaps. QLYS’ software can provide critical data about which assets are exposed to specific threats and can increasingly help IT departments prioritize and remediate these vulnerabilities. Cybersecurity continues to be one of the fastest growing segments within software for good reason. Almost every company is slowly finding itself becoming a technology company and facing rising cybersecurity risks.
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Another cloud-native security vendor, Zscaler (ZS 1.04%), works in tandem with endpoint security services to help keep data secure. The company has been increasing its sales at a rapid pace and is another of the largest pure-play cybersecurity stocks as measured by market cap — even though the stock itself sold off 65% in 2022. But for those with a more short-term, speculative view, trading cybersecurity stocks could open up more opportunities. By taking a position on company shares and ETFs via derivative products – such as CFDs – you can try and predict which direction the market price will move in. And because you never take ownership of the underlying shares or units, you can take advantage of markets that are falling in price, as well as those that are rising.
- Many of the stocks in this sector have high P/E ratios, and prices can be volatile and verysensitive to quarterly growth.
- Shares in Zscaler advanced after it pre-announced preliminary fiscal third-quarter results.
- Strong independent security test results get our attention in a market that is starved for information.
- However, like any investment, there are pros and cons to investing in the cybersecurity industry.
- Get stock recommendations, portfolio guidance, and more from The Motley Fool’s premium services.
Both sales and earnings are critical factors in the success of a company. Companies with quarterly EPS or revenue growth of over 1,000% were excluded as outliers. Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing. Zero Trust cybersecurity models focus on internal threats, such as hackers stealing someone’s security credentials. Security firms verify the identity of network users and limit access to applications. Meanwhile, hackers often aim to compromise networks by targeting employees or management who have administrative access.
Global X Cybersecurity ETF (BUG)
That assessment may sound a little flip, but employee errors like clicking on malicious links and downloads continue to be the cause of most cyber attacks, and many devastating ones at that. That makes preventing employee error through measures like training and email gateways a critically important practice for reducing cyber attacks. 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.
The demand for cybersecurity solutions is expected to grow as technology advances and cybercrime becomes more sophisticated. However, like any investment, there are pros and cons to investing in the cybersecurity industry. Once you have identified potential cybersecurity companies, you can analyze them to determine their financial health, competitive positioning and growth potential. To assess the company’s financial health, you can look at key financial metrics such as revenue growth, profit margins and cash flow.
Top 7 Cloud Security Post…
BlackBerry says it secures more than 500 million endpoints, including over 195 million vehicles. 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.
To compile our list, we start with innovation and market leadership, hence our focus on our rigorously researched top security product lists. Consistent performance, revenue and growth are ranking factors, as a product without traction likely isn’t meeting a strong need. Strong independent security test results get our attention in a market that is starved for information. User reviews, product features, benefits and use cases, and analyst reports also play a role in our analysis. Venture capital funding will get our attention only if it’s backed by substantial revenues and growth. In volatile times, investing in a company with a $1.8 trillion market cap gives investors both growth and stability.
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. 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). With the Global X Cybersecurity ETF, investors get exposure to 27 cybersecurity stocks, making BUG a heavily concentrated fund. In fact, as of October, the fund’s top five holdings made up 39% of its overall portfolio. Additionally, 57% of the company’s holdings are software companies, which have advantages over companies that provide hardware solutions.
Companies that relied on upsells during the last earnings season are the hardest hit
Cloud security measures are necessary because data in the cloud can be vulnerable to a wide range of cyber threats, including data breaches, unauthorized access, data loss or leakage and malware attacks. Cyber security investment has become increasingly important for organizations across all industries as cyber threats continue to grow and evolve. With the rise of cloud computing, mobile devices and other emerging technologies, companies and individuals need more than traditional security solutions to protect against modern cyber threats.
It manages all IT assets for any endpoint, whether on-premises, cloud or mobile. The system also helps to not only discover breaches, but to provide effective remediation actions. According to a survey from Gartner, chief information officers say that cybersecurity is the highest priority. Get this delivered to your inbox, and more info about our products and services.
Akamai Technologies, Inc. (NASDAQ:AKAM)
And with global spending on cloud computing expected to exceed $1 trillion annually this decade, Zscaler is well-positioned to profit from a massive secular growth trend. The 9 cybersecurity stocks we track reported a slower Q4; on average, revenues beat analyst consensus estimates by 2.22%, while on average next quarter revenue guidance was 0.07% under consensus. Compared to most businesses, Check Point is more knowledgeable about online security.