The shares of cybersecurity software have skyrocketed in recent months. Both the ETFMG Prime Cyber ??Security ETF (NYSE :), which rose 38.6% in 2020, and the First Trust NASDAQ Cybersecurity ETF (NASDAQ :), which climbed 48.1% last year, are each just below their highest point ever.
The industry will enjoy another year of blockbuster profits as the rampant rise in cyber attacks fuels the demand for innovative cybersecurity solutions.
The three stocks below may offer the best growth potential in the year ahead and are worth considering given their emerging cybersecurity dominance.
1. CrowdStrike
Crowdstrike (NASDAQ 🙂 set the market on fire last year}}, taking the cloud-based cybersecurity specialist's share of 325% increased.
The Sunnyvale The California-based company – whose technology is used to detect and prevent security breaches – has taken advantage of the growing demand from companies to make their IT networks more secure in the workplace. from-home environment during the coronavirus pandemic.
] CRWD stock, which hit a record high of $ 227.36 on December 23, closed at $ 211.24 last night and valued the cybersecurity company at about $ 46.4 billion.
Despite its high ratings, CrowdStrike is trading sky high. price-to-sale (P / S) ratio of nearly 61 – the stock still looks attractive going forward given the strong demand it has seen for its cloud-based cybersecurity tools.
The fast-growing technology company, which has nearly half of its Fortune 100 companies as customers, said it had a total of 8,416 customers at the end of its most, an 85% year-on-year increase.
The cybersecurity leader is expected to see even greater demand in the coming year as it appears to be one of the main beneficiaries of increased corporate cybersecurity spending amid the impact of the massive hack that occurred at the end of last year at the supplier of network management software SolarWinds.
2. Okta
Okta (NASDAQ :), which helps businesses manage and secure user authentication, is one of the fastest growing companies in the fast-growing cloud-based software industry. as-a-service (SaaS).
The San Francisco, California-based company – widely regarded as the leader in identity and access management – saw its stock increase nearly 123% in 2020 thanks to strong demand for its cybersecurity platform amidst the shift to remote working during the ongoing health crisis.
OKTA settled at $ 249.55 yesterday, ahead of its all-time high of $ 286.79 reached on December 23, giving the cybersecurity company a market cap of $ 33.1 billion.
] The identity and access management specialist is well positioned to continue its advance in 2021, as the projected increase in cybersecurity spending is likely to lead to increased use and adoption of its Okta Identity Cloud platform.
As of its, the company has counted m or more than 9,400 organizations worldwide as customers. Additionally, Okta now has more than 300 customers generating $ 500,000 in annual revenue, underscoring the growing demand from large enterprises for its cloud-based identity and access management software.
Okta should continue to enjoy a boost to its already existing tremendous financial performance over the next year, but its high price-to-sales ratio of 43 leaves little room for error.
3. Cloudflare
Cloudflare (NYSE :), which provides web security and infrastructure services, ended 2020 as one of the big winners of the year, with a share of the provider of cloud networks and security solutions that achieved 341%.
The San Francisco, California-based technology company benefited from {{erl-1152334 || the increasing demand for its cloud-based network and cybersecurity services due to the increase in internet traffic during the COVID-19 outbreak.
NET share, which rose to a record high of $ 88.75 on Dec. 22, ended last night at $ 73.61, earning the content delivery network and web security company a valuation of $ 23.4 billion.
Cloudflare's share is likely to continue its remarkable performance in 2021 due to the increasing demand for web security, content delivery and business network services and solutions in today's environment.
The network security company said it had more than 3. 2 million customers at the end of the third quarter, of which more than 100,000 are paying customers. Even more impressively, major clients who spend at least $ 100,000 annually rose to 736.
Despite its nosebleed rating levels – Cloudflare trades at a stellar price-to-sell ratio of 60 – we expect it to be one of the top-performing names in the fast-growing cloud and edge computing sector.
