Now global geopolitical risks are increasing, cyber attacks have accelerated. One beneficiary of the expanding threat? Cyber â€‹â€‹security shares.
While both and both increased at the start of 2019 around 11% and reached more than 14% in the same period, the ISF Cyber â€‹â€‹Security ETF (NYSE 🙂 of PureFunds increased by 16.4% . During the same period, the First Trust NASDAQ CEA Cyber â€‹â€‹Security Fund (NASDAQ 🙂 benefited even more – it increased by 17.9%. Both funds outperform the broader market and each trades just below its highest point ever.
As a result of the demand for balloons for cybersecurity solutions, companies in this space are well positioned to benefit from the benefits in the long term. Given their dominance in the sector, these three stocks can offer the best growth in the long term:
1. Palo Alto Networks: Cream of the Crop
Palo Alto Networks (NYSE), headquartered in Santa Clara, California, is widely regarded as the most important company within the cybersecurity industry. The main product is a platform that includes advanced firewalls and cloud-based offers that extend these firewalls to cover other aspects of security. The company serves more than 50,000 organizations in more than 150 countries, including 85 companies listed on the Fortune 100.
The shares of Palo Alto, which reached its highest level ever of $ 260.63 on 27 February, have risen by 24.4% since 1 January. The stock closed at $ 234.34 from last night.
The company announced a major on February 26 and announced plans to buy back $ 1 billion in shares. It also introduced its new automated security product, Cortex, which Palo Alto Networks praised as "the only open and integrated, AI-based continuous security platform in the industry."
Jefferies analyst John DiFucci, who already had a buy-rating on the shares, increased his price target from $ 249 to $ 296. He called Cortex a "product that extends beyond a typical endpoint detection and reaction product" in the integrated network and cloud data arena.
2. Zscaler: Cloud-Based Cybersecurity Specialist
So far, the shares of Zscaler Inc. (NASDAQ 🙂 so far on a tear, jumping nearly 47%. Investors have become increasingly optimistic about the cloud-based information security specialist
The San Jose-based company offers automated forensic threats and dynamic malware protection against advanced cyber threats such as spear phishing. The share has risen about 75% since the company became public in March 2018. Stocks are currently trading at $ 57,53 from the end of yesterday, only 6.5% below the highest ever peak of $ 61.53, hit on March 4th.
In his most recent profit report on February 28, Zscaler for his fiscal second quarter. It also led to a better-than-expected expectation pattern thanks to the strong growth of the Private Access service, enabling organizations to provide secure access to internal applications and services.
Wedbush analyst Daniel Ives, who has an outperform rating on the stock, increased his price target to $ 68 from $ 53. He also said that the party has just started:
"Zscaler delivered a Picasso-like quarter, marked by 65% â€‹â€‹overall growth in revenues and 74% year-on-year growth in bills, which crushed Street expectations because the company was more profitable than the street expected . "
Taking all these elements into account, Zscaler seems to move quickly to the name in cyber security in the cloud.
3. CyberArk software: the best supplier of PAS solutions
Cyberark Software (NASDAQ 🙂 is headquartered in Petah Tikva, Israel with US offices in Newton, MA. The cybersecurity company offers Privileged Account Security (PAS), which means that the company's technology helps manage all privileged accounts within an organization through automatic password management, access control, dual control, video recording and various other functions.
The stock, currently trading at $ 106.92 just below a high point ever of $ 113.07 touched on March 1, has so far gained approximately 44% this year.
CyberArk & # 39; s, released on February 14, were much better than expected and beating on both the top and bottom lines. The company also issued guidelines for the first quarter, because CyberArk benefits from the growing acceptance of Priviled Access Management (PAM).
"Our innovation has strengthened our leadership position as the global provider of industry solutions to ensure privileged access from on-premise to the cloud," said Udi Mokady, chairman of the company's board of directors afterwards of the conference. ]
Given the long-term potential of PAS and PAM and its strong position in that market, CyberArk seems well placed to remain a leading cybersecurity game in the near future