Dec 21, 2020 11:56AM EST
Looking For The Top Cybersecurity Stocks To Buy Now? 1 Up 500%+ Since March
It has been a phenomenal year for the top cybersecurity stocks in the stock market so far. In fact, it may have just gotten better for some. Just last Thursday, it was revealed that various U.S. federal agencies and organizations around the globe were hacked. In what some consider the most severe hack in U.S. history, it is understandable that everyone would be wary about their online security now. The U.S. Cybersecurity and Infrastructure Security Agency says that “the intrusion had compromised federal agencies as well as critical infrastructure in a sophisticated attack that was hard to detect and will be difficult to undo.”
The fallout from this cyberattack saw cybersecurity company SolarWinds’ (SWI Stock Report) shares dive by over 20% since the news broke. The opposite happened to the stock of cybersecurity company FireEye (FEYE Stock Report) who spotted the breach. If anything, it shows the world that cyberattacks can happen to anyone. With such an industry-shaking event happening, investors may be wondering if any other cybersecurity stocks stand to benefit from this. With more companies being concerned about the safety of their online assets, cybersecurity stocks could be seeing another tailwind approaching fast as the market opens today.
Regardless, new investors hoping to jump on to the trend will soon realize that there are a plethora of companies in the industry to invest in. Navigating the cybersecurity industry can be a tricky affair because of this. To help with that, here is a list of the top cybersecurity stocks to watch this week.
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Best Cybersecurity Stocks To Watch This Week: CrowdStrike Holdings Inc
Right off the bat, we have cybersecurity superstar CrowdStrike (CRWD Stock Report). It is no surprise that the company has had a stellar year so far. The company offers endpoint security, threat intelligence, and cyber-attack response services. With such a well-suited portfolio for these troubling times, investors appear to be very interested in its stock offering. CRWD stock soared nearly 10% to $203.75 a share last Friday. It is making new highs again this morning, reaching $207.36 as of 9.40 a.m. ET on Monday.
Financially, it has been doing extremely well. In its recent quarter fiscal posted earlier this month, CrowdStrike saw an 87% jump in total revenue year-over-year. This was followed by an impressive leap of 81% in annual recurring revenue in the same period. CEO George Kurtz mentions that the company’s robust growth emphasizes its leading role in the Security Cloud industry. Taking in all of this, investors are definitely impressed. But, there’s more where that came from.
Understandably, the company’s reputation as a cybersecurity titan in the industry would naturally make for an attractive choice to investors now. On top of that, the aforementioned SolarWinds has turned to CrowdStrike to fortify its systems after the major hack. SolarWinds said, “Our top priority has been to take all steps necessary to ensure that our and our customers’ environments are secure.” As a result, CrowdStrike could stand to benefit in the long term as it is portrayed as the saving grace for the U.S. on the cybersecurity front. Given all of this, I would not be surprised if investors are watching CRWD stock closely going into 2021. Will you be doing the same?
Best Cybersecurity Stocks To Watch This Week: Palo Alto Networks Inc
Following that, we have Palo Alto (PANW Stock Report). It is a California-based multinational cybersecurity company that provides advanced firewall and cloud-based offerings to clients. The company does so via its proprietary platform, Cortex. Notably, PANW stocks are up by over 160% since the March lows. Investors may be curious as to what the company has been doing right so far.
In terms of financials, the company appears to be thriving. Palo Alto reported a 23% year-over-year rise in total revenue in its recent quarter fiscal posted in November. Additionally, it also ended the quarter with $2.14 billion in cash on hand. Given that the company has been on a spree of acquisitions this year, investors could be convinced of its comfortable financial position. As with most cybersecurity stocks, it jumped on Friday’s trading session last week. The real question remains, how will Palo Alto compare to its competitors moving forward?
Well in recent news, the company appears to be kicking into high gear. On December 15, Palo Alto completed its acquisition of attack surface management (ASM) leader Expanse. Expanse’s expertise in ASM provides a greater level of visibility and security through the continuous scanning of exposed assets for Palo Alto clients. This integration would extend Cortex’s capabilities and provide for more coverage against cybersecurity attacks. This is a great play by the company as it could attract potential clients looking to upgrade their cybersecurity measures. Coincidentally, there could be a rise in those kinds of clients now. Because of the company’s string of acquisitions and stellar financial performance this year, it could be on investors’ radars. Given all of this, will you be adding PANW stock to your 2021 watchlist?[Read More] Top 5 Things To Watch In The Stock Market This Week
Best Cybersecurity Stocks To Watch This Week: NortonLifeLock Inc
Lastly, we have Norton (NLOK Stock Report). The Arizona-based security-software company has a wide array of cybersecurity offerings stemming from its Norton Security product line. Norton also offers a selection of comprehensive plans for customers. NLOK stocks have had a good month so far with its share prices seeing gains of over 14%. Let’s take a closer look into what the company has been up to in that time.
Firstly, it acquired consumer security software company Avira early in December. This producer of anti-virus software is no small name having partnered with the likes of Facebook (FB Stock Report) and IBM (IBM Stock Report) in the past. Having also acquired Avira’s 30 million customers at the time, it was indeed a good move by Norton. Second, it appears that Norton has leveraged this acquisition with its recent collaboration with Paytm announced earlier last week. Paytm is an Indian e-commerce payment system and financial technology company. Through this deal, Paytm users will have access to Norton’s security software through a variety of packages. Norton mentions that Paytm’s “ large and growing pan-India reach” will provide a solid means of penetrating the Indian consumer market. Undoubtedly, this is amazing news for both Norton and its investors.
In its recent quarter fiscal posted in November, the company reported total revenue of $626 million for the quarter. Coupled with its $1.01 billion in cash on hand, it appears Norton is making the most of its current resources. Should things go as planned in India, could this be the beginning of NLOK stocks’ rise to glory in 2021? You tell me.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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