5 High-Performing Cyber Security Stocks to Look Out for in 2022

Cybersecurity companies trading on the OTCBB market are not included in this list. We sell different types of products and services to both investment professionals and individual investors. These products and services are usually sold through license agreements or subscriptions. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters. The network effect occurs when the value of a company’s service increases for both new and existing users as more people use the service.

Critical infrastructure security – These are firms that help to protect important infrastructure like the electricity grid. The selling wasn’t confined to the equities market, with crude oil, gold and Bitcoin all suffering steep losses. Casino stocks were a pocket of strength after Macau said it will ease COVID-related travel restrictions in November. Nearly five years later, the Russians have invaded Ukraine and war is raging. Experts had been expecting more cyber devastation, but so far Russia has not knocked out Ukraine’s power grid or other important infrastructure. We’d like to share more about how we work and what drives our day-to-day business.

Fortinet (FTNT)

These are the cybersecurity stocks that had the highest total return over the past 12 months. Follow Reinhardt Krause on updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing. Their tools detect malware on laptops, mobile phones and other devices that access corporate networks. The coronavirus emergency and shift to remote work has accelerated the growth of cloud-based network security.

According to Global Market Insights, the cybersecurity market is expected to reach $400 billion by 2027 from $170 billion in 2020, representing a compound annual growth rate of 15% during this period. The report mentions that rapid technological advancement is driving the shift to cloud-based solutions. The increasing use of the digital world increases cybercrime, which increases enterprises’ spending on cybersecurity. The market has indiscriminately penalized tech stocks across the board and cybersecurity stocks are simply caught in the cross fire. Q1 earnings proved that cybersecurity stocks are insulated from supply chain issues and remain a number one priority across corporate budgets. Early in 2022, many of the more established cybersecurity stocks not only held up in face of the broad market downdraft but also outperformed following the Russian invasion of Ukraine.

Cybersecurity Stocks Report Mixed Earnings

The technology sell-off has been putting pressure on stocks since November, but cybersecurity stocks held their ground better than others, with the share price up 18.2% since earnings, on average. 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.

As well, it beats out the cybersecurity industry’s median net margin of 2.3%. In addition, Fortinet offers managed intrusion prevention systems, which is a compelling subsegment within the broader cybersecurity space. In particular, CACI has the advantage of providing services for both U.S. government agencies and major blue chips.

Spotting Winners: Rapid7 (NASDAQ:RPD) And Cybersecurity Stocks In Q4

Zscaler has a free cash flow margin of 15% and management expects this to expand to a free cash flow margin of 20% for the full-year ending July 2022. Many cybersecurity stocks are still unprofitable, but what they’re selling is an absolute necessity going forward. So far this year, CACI is up 6% in the market, making it one of the 4 easy steps to be a master at technical analysis to buy in terms of comparative stability. According to the Council on Foreign Relations, the thinktank has identified 34 separate countries that deploy state-backed cyber operations. While Russia weighs heavily in terms of potential threats, it’s not the only power to worry about. Nations like China, Iran and North Korea aren’t exactly friendly to the U.S., thus cynically bolstering the narrative for the best cybersecurity stocks to buy.

The company has bought several cloud-native businesses in the past few years. However, Palo Alto says that it’s done making purchases for the time being. If you’re considering stocks to buy and hold for the long haul, quality matters, and Microsoft fits that description. One reason for that is the company’s ability to generate free cash flow .

Absolute Software (ABST)

While most people don’t know what Cloudflare is, many of them have used their services. The company provides DNS solutions that are used by most websites like DoorDash, LabCorp, IBM, LendingTree, and Zendesk. Its total revenue has grown from $84 million in 2016 to more than $431 million in 2021. Among more focused opportunities, turn first to the largest such stock, Palo Alto Networks , with a market capitalization of $60 billion. Since NotPetya, revenues have tripled, and the company’s share price has more than quadrupled. However, Okta’s stock has been under enormous pressure over the past year.

The company is trading around $102.94, and has only gone as low as $80.78 over the past 52 weeks. The Equifax Inc. breach had enormous implications for the approximately 145 million people whose data was compromised. Consequently, the company is in the throes of a significant internal overhall. Market data provided is at least 10-minutes delayed and hosted by Barchart Solutions. Year-to-date, QLYS has declined -10.86%, versus a -12.61% rise in the benchmark S&P 500 index during the same period. With this in mind, security experts are issuing warnings about a new type of malware that might cause data loss.

“I just think that we saw macro conditions where budgets seemed to be tightening, meaning they had to make a decision about when they wanted something to happen.” SentinelOne – Strong Buy, based on 11 analyst ratings, 9 Buy, 2 Hold, and 0 Sell. CyberArk Software – Strong Buy, based on 15 analyst ratings, 14 Buy, 1 Hold, and 0 Sell. Varonis Systems – Strong Buy, based on 13 analyst ratings, 10 Buy, 3 Hold, and 0 Sell.

• David Sekera does not own shares in any of the securities mentioned above.
• 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.
• Early in 2022, many of the more established cybersecurity stocks not only held up in face of the broad market downdraft but also outperformed following the Russian invasion of Ukraine.
• Some experts predict that cloud security will post the biggest increase in 2022.
• Cybersecurity Stocks is a list of cybersecurity stocks for trading on NASDAQ, AMEX and NYSE.

To see all exchange delays and terms of use please see Barchart’s disclaimer. Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies brokerage house meaning on content and your personal data. The rapid increase in alerts and attacks requiring remediation will require an increasing amount of automation. Are both down well over 50% for the year to date; however, we think the market is being overly pessimistic on the long-term prospects for both companies.

Companies all over the world are looking for greater security as Russia’s sanctions take effect. I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. On a personal note, Seeking Alpha has multiple staff in Ukraine, and our thoughts and heartfelt prayers are with them and their families during these trying times. Seeking Alpha supports those families and our many employees of Ukraine. It also raised guidance of adjusted income from operations from a midpoint of $300.5 million to $312.2 million.

These Are Three of the Best Digital Nomad Villages in 2022…

Meanwhile, analysts say Netskope, Illumio and Menlo Security are among cloud security startups that could launch IPOs. It’s IBD’s curated list of leading stocks that stand out on technical and fundamental metrics. The rise of cryptocurrency Bitcoin has been linked to a spike in ransomware attacks. In ransomware attacks, hackers take over computer systems, encrypt files and demand digital payment to restore access to critical data. Further, Congress has finally passed legislation funding infrastructure projects, which is expected to include funding for federal, state and local cybersecurity infrastructure.

• In July 2017, it announced that it had won the right to sell its secure messaging tools to the US Federal Government with an endorsement from the National Security Agency.
• We also reference original research from other reputable publishers where appropriate.
• QLYS is a pioneer and leading provider of cloud-based IT, security, and compliance solutions.
• Despite the fact that Palo Alto earns more revenue, Fortinet has a larger operating margin, resulting in higher returns.

CyberArk initiated with a Buy at MKM Partners MKM Partners analyst Catharine Trebnick initiated coverage of CyberArk with a Buy rating and $190 price target. MKM Partners starts Palo Alto Networks at Buy with $250 price target MKM Partners analyst Catharine Trebnick initiated coverage of Palo Alto Networks with a Buy rating and $250 price… MKM Partners starts CyberArk at Buy with $190 price target MKM Partners analyst Catharine Trebnick initiated coverage of CyberArk with a Buy rating and $190 price target as… Go to the Stock Comparison tool to compare more stocks on key indicators. FTNT stock was down 13% in the first half of 2022 but it bounced off its 52-week low.

Performance Comparison

Now also a leading cloud security provider, this legacy business is highly competitive in the cybersecurity industry. Shares trade for a relative value compared to its younger, high-flying, cloud-native rivals. Despite a slowdown, this small company still doubled sales year over year during the first few months of 2022. It operates a cloud-based endpoint security platform, which puts it in competition with CrowdStrike. Its ability to automatically detect and resolve cybersecurity threats is being well-received in the market.

Businesses know that they have to invest in cybersecurity or risk huge losses or outright failure. For example, ransomware attacks have been accelerating at an alarming rate and have become a driving force practical linux for network engineers for companies to ramp up spending on cybersecurity. Cybersecurity Ventures estimates that there were $20 billion of ransomware damages in 2021 and those damages could grow to $265 billion in 2031.

In addition, it mostly serves major enterprises, having 1,077 millionaire accounts in the second quarter. It has already doubled in size to $55 billion dollars and is expected to quadruple again by 2025. CrowdStrike stole the show this quarter with a beat on both top and bottom line; but it was the raised guidance line that stood out. Revenue accelerated by 61% YoY to $487.8 million and annual recurring revenue also accelerated by 61% YoY to $1.92 billion. We had stated on Fox Business News that a small cohort of companies emerged this past quarter to increase the top line while also reporting narrowing losses on the bottom line.

Next, Palo Alto Networks Inc. is an American multinational cybersecurity company with headquarters in Palo Alto, California. The company provides a range of network security products, including next-generation firewalls, advanced endpoint protection, and cloud security. Cybersecurity is a top priority in budgets and the results are showing up. We found a strong pattern with cybersecurity stocks sustaining growth rates and strong bottom lines this quarter. The cybersecurity sector overwhelmingly beat estimates compared to other sectors within tech and investors may want to take notice.

• There are a variety of cybersecurity ETFs you can trade on, including the Global X Cybersecurity ETF and the ETFMG Prime Cyber Security ETF.
• Both sales and earnings are critical factors in the success of a company.
• The key purpose of the platform is to prevent breaches, such as malware, by using cloud-delivered technologies.
• MarketBeat empowers individual investors to make better trading decisions by providing real-time financial data and objective market analysis.

On the balance sheet, the company features a cash-to-debt ratio of 10.1, well above the industry median of 3.7. Moving to the income statement, Qualys enjoys outstanding profitability ratios. For example, its net margin is 22.5%, beating out the sector median of 2.3%. With the world becoming increasingly tense, there may be no better time than now to consider adding the best cybersecurity stocks to buy to your portfolio. Primarily, amid the backdrop of Russia’s invasion of Ukraine, western powers are careening toward major direct conflicts with belligerent state actors.