Top Cybersecurity Stocks for Q4 2022

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When the bear market eases, investors might consider the Global X Cybersecurity ETF for a more broad exposure to the sector. It has also developed the lower cost Cloud MVX and MVX Smart Grid intelligent threat detection solutions for large enterprises and mid-market businesses. NortonLifeLock Inc.’s stock is expected to fall by the second half of January, if not sooner, because the company should report its third-quarter earnings results in the first week of February. Based on expected annual earnings of $1.68 for 2018 and the peer group average forward P/E of 28.85, NortonLifeLock’s shares are expected to be worth $48.47 next year, which represents a 71.58% upside. • Reviews Guidelines The reviews published on vpnMentor are written by experts that examine the products according to our strict reviewing standards.

Popular Stocks

These are the cybersecurity stocks with the lowest 12-month trailingprice-to-earnings (P/E)ratio. Because profits can be returned to shareholders in the form of dividends and buybacks, a low P/E ratio shows you’re paying less for each dollar of profit generated. Here are the top three cybersecurity stocks with the best value, the fastest growth, and the most momentum. Note that the companies on our list are primarily pure-play cybersecurity companies, while CIBR includes a wider variety of related stocks in its portfolio. You may think the time is right to move into cybersecurity stocks amid the latest data breach involving ride-sharing service Uber Technologies .

Elsewhere in technology, ad-supported businesses like Snap and Facebook have gotten pummeled, while online commerce companies Shopify and Affirm warned of a return to pre-Covid spending patterns. Even Apple CEO Tim Cook said the iPhone marker sees “pockets of softness” as fears of an economic slowdown percolate. And two weeks ago, Cisco said its security business grew faster than all other segments, surpassing analysts’ estimates by about $100 million. Investors heard similar commentary last week from Palo Alto Networks, which reported a profit for the first time in a decade. The data center security company’s stock soared 12%, its best performance since its IPO in 2012.

First, you can invest or trade in individual stocks like Cloudflare, Norton, and Fortinet, among others. Tenable is also a potential takeover candidate in a sector that is consolidating. NortonLifeLock, a powerhouse on the consumer side of cybersecurity, is awaiting regulatory approvals to complete its merger with Avast, a firm based in the Czech Republic that focuses on protecting small businesses. Norton has a solid franchise and provides good balance to faster-growing, more-expensive companies in the sector. In the cyber world, hackers always have the upper hand, but defenders are catching up. The companies that deploy the software, hardware, intelligence and training to thwart attacks have gotten better at what they do.

Business Security Systems: The Best of the Best

The company raised the full-year ending July revenue guidance from a mid-point of $5.46 billion to $5.49 billion, representing a YoY increase of 29% at the mid-point. Gartner has also reported from a CIO survey that cyber and information security is the top priority of planned investments for companies for 2022 with 66% planning to increase investments. Fastly is a relatively small company with a market cap of around $6.2 billion.

• • Reviews Guidelines The reviews published on vpnMentor are written by experts that examine the products according to our strict reviewing standards.
• So the industry now has a new term for the infrastructure that supports distributed workers and branch offices.
• There are many different types of cybersecurity businesses, and they all have different ways of providing security.
• Moreover, CRWD said it expects third-quarter non-GAAP earnings of $0.30 to $0.32 per share on revenue of $569.1 million to $575.9 million.

In particular, cybersecurity stocks are the shares​ of companies that engage in protecting data and systems belonging to individuals and organisations from unauthorised access. If a corporation is the target, the cost of recovery might run into millions of dollars. Therefore, rather than sitting back and waiting for an assault, many businesses are investing in security. Some experts predict that cloud security will post the biggest increase in 2022.

Cybersecurity Stocks to Buy and Hold for the Long Haul

Like QLYS, FTNT has been a relative outperformer with a 9% gain over the past year. While most tech stocks have been mired in a brutal bear market, FTNT has consolidated in a tight range, indicating that institutions are using adverse market conditions to accumulate shares. “And two weeks ago, Cisco said its security business grew faster than all other segments, surpassing analysts’ estimates by about $100 million. While there are increasing concerns about the health of the consumer and some economists say the U.S. economy is in a recession, companies can’t skimp on cybersecurity spending. That risk isn’t worth the “reward,” and it amounts to be penny-wise/dollar-foolish. Recent earnings reports from some well-known cybersecurity companies confirm as much.

Even more important, each recently earned a Buy rating from our coveted POWR Ratings system where the A rated stocks have gained +31.10% a year. All 9 picks have strong fundamentals and are experiencing tremendous momentum. They also contain a winning blend of growth and value attributes that generates a catalyst for serious outperformance.

Palo Alto Networks (PANW​)

Also, Okta is expanding into new security markets to take on CyberArk Software and SailPoint. Kristina is an experienced tech writer and researcher with a keen interest in cybersecurity for businesses and the general public. Swift adoption of Check Point’s data center appliances and consistent enhancements in data center product lines provide abundant top-of-the-line support. The company’s focus on boosting mobile capabilities also enables it to tap into new market sectors. Check Point Software Technologies is a worldwide provider of technology security solutions. As the demand for this industry balloons in a changing world, let’s look at five stocks that look promising for 2018, and which would work great as part of a cybersecurity ETF (Exchange-Traded Fund).

• It is possible to invest in cybersecurity stocks by acquiring shares of cybersecurity companies and holding them for a long period of time in the hope of making a profit.
• Nevertheless, we want to note that we are experts in privacy and security, not stocks and finance.
• Another worldwide cybersecurity company, Fortinet, is expanding beyond its hardware offerings.
• Falcon now has 21 cloud modules that cover identity to the cloud and everything in between.

Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We provide a platform for our authors to report on investments fairly, accurately, and from the investor’s point of view. We also respect individual opinions––they represent the unvarnished thinking of our people and exacting analysis discount brokerage firm definition of our research processes. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive. Cybersecurity industry is a fast-growing, high-margin industry, and the stocks are attractive right now.

Cybersecurity Stocks: The Top 5 for 2022 Investments

Other popular cybersecurity ETFs are ProShares Ultra Nasdaq Cybersecurity and WisdomTree Cybersecurity Fund. Among exchange-traded funds, consider Global X Cybersecurity , with an expense ratio of 0.5%. In 2020, its first full year, it returned 70.8%, and it gained another 13% in 2021. Palo Alto, Fortinet, CrowdStrike, Tenable, NortonLifeLock and Qualys are holdings, so the ETF provides a handy way to buy some of my favorites.

Microsoft spent over $500 million to acquire RiskIQ and CloudKnow Security in 2021. That may have some quibbling over the company’s dividend, but MSFT stock is a growth stock at its core. This is reflected in the company’s revenue, which continues to increase on a sequential and year-over-year basis. The biggest difference is that Zscaler is a niche player that focuses on allowing all users on a network to safely browse the internet and access applications no matter what device they’re on or where they are. According to Cybersecurity Ventures, the total damage of cybercrime in 2021 was over $6 trillion. Morningstar put together a list of stocks with one- and three-year betas of 0.8 or lower.

It’s time to learn about the best cybersecurity stocks to buy if you want to profit from the rising market. Another larger cybersecurity company, Fortinet, offers a wide range of tools, including intrusion-prevention and anti-malware software. Shares have risen nearly 20% since the war in Ukraine began, and the stock’s price-earnings ratio is 68, based on analysts’ forecasts for earnings for the year ahead. The company benefited from the rapid growth in the work-from-home environment.

Such standards require that each review will be based on an independent, honest and professional examination of the reviewer. That being said, we may earn a commission when a user completes an action using our links, which will however not affect the review but might affect the rankings. The latter are determined on the basis of customer satisfaction of previous sales and compensation received. The stock is down 4.38% since the results and currently trades at $252.11. Some of the companies included in our Cyber Security share basket include established names such as Cisco, NortonLifeLock, Okta, Splunk, SecureWorks and Palo Alto Networks. You can also practise trading on our share baskets with a demo account before transferring to a live account, with £10,000 worth of virtual funds.

Rapid7 reported revenues of $151.6 million, up 34% year on year, beating analyst expectations by 3.94%. It was a mixed quarter for the company, with a decline in gross margin but optimistic guidance for the next quarter. Following an impressive rally off the July lows, growth stocks, including plenty of technology names, limped into the end of August.

Blockchain Stocks This form of ledger technology is what’s behind cryptocurrencies and other tech trends. Tech Stocks From AI to streaming companies and more, get ideas for building tech into your portfolio. These market performance figures what is a python developer and all statistics in the tables below are as of Sept. 19, 2022. IBD Videos Get market updates, educational videos, webinars, and stock analysis. Analysts say a new wave of startups seems to be taking share from industry incumbents.

Experts project that by 2027, the segment will command a valuation of $16.6 billion, representing a CAGR of 23.5% from 2023 estimates. According to Fortune Business Insights, the network security segment’s valuation alone is expected to rise to $53.11 billion by 2029, representing a compound annual growth rate of 13% from 2022. Data analytics is a fast-growing segment of IT management, and Splunk is a central part of many organizations’ security and monitoring efforts. The company expects its annualized recurring revenue to grow at a double-digit rate over the next couple of years. Customer relationship management is a reference to how companies, especially technology firms, interact directly with their customers. Free Online Investing Workshop Join us for the Virtual Trading Summit and learn the fundamentals of smart investing!