Are you looking for cyber security companies stocks to trade? There are quite a few you can look into. Working from home doesn’t seem to be going away any time soon. We’ve learned we don’t need to be in an office to be productive. And it’s changed how we work. Which means we need a secure network.
With every high-profile digital security breach, like that of the Colonial Pipeline, agreeing to pay $4.4 million in ransom to the criminals who shut down their operations, two things are the result.
This result will push more hackers to find vulnerabilities in companies‘ networks and systems to gain in similar ways. The need for cybersecurity will increase. And the value of effective cybersecurity companies goes up.
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Cyber Security Stocks Introduction
The primary purpose of cybersecurity is to protect electronic data from damage or theft. This security is accomplished through procedures, hardware, and software.
Cybersecurity securities companies stocks will focus mainly on the hardware and software side of this process to ensure the safety of private users, a company’s, or even governmental data.
The three largest cybersecurity companies by revenue are Norton LifeLock, McAfee, and Palo Alto Networks, none of which made our lists. If you want to invest in cybersecurity companies and wish to diversify easily, there are three ETFs in the sector:
- First Trust NASDAQ Cybersecurity ETF (CIBR)
- Global X Cybersecurity ETF (BUG)
- iShares Cybersecurity and Tech ETF (IHAK)
ETFMG Prime Cyber Security ETF (HACK).
The Nasdaq CTA Cybersecurity Index (NQCYBR) tracks the industry and is up 38% over the past year (as of May 21, 2021), with the S&P up 44% for the same period.
We’ve broken our list of cybersecurity stocks into Growth, Value, and Momentum stocks; stocks overlap in more than one category. These companies are all major players in cybersecurity but may be broader network solutions companies. The NQCYBR has a broader range of stocks that make up its composition.
Best Cyber Security Stocks
1. CACI International (NYSE: CACI)
CACI International also leads the value list (see more information about CACI in growth stocks). Over the past year, their price has only increased from 230 to 247 per share.
2. Ribbon Comm. (NYSE: RBBN)
Ribbon Communications Inc.is also a network solutions provider focusing on companies in the communications services sector. It offers policy and routing servers, cloud, mobility solutions, media and signaling gateways, and more. Ribbon Coms reported a net income of $124 million for Q4 2020. And a net loss of $150 million in Q4 2019. This turnaround is primarily due to a 51.6% year-over-year (YOY) increase in quarterly revenue. A significant portion of this revenue increase is due to its acquisition of ECI Telecom Group, Ltd. That deal concluded on March 3, 2020
3. Check Point Soft. (NASDAQ: CHKP)
Check Point Software Technologies Ltd. develops and manufactures software and hardware products focused on cyber and IT security. Beyond management solutions, they protect networks, gateways, data, and endpoints. For Q4 2020, Check Point’s income fell 0.6% YOY. But their revenues increased by 3.7%. Check Point stated in their Q4 results that they’re seeing growth in cloud networking and remote access security during the quarter.
CACI International Inc. ($CACI) TipRanks Stock Forecast Report 3/24
Cyber Security Growth Company Stocks
The following cyber securities companies’ stocks have the greatest change in YOY EPS. This metric change indicates that the company produces money that can be invested or returned to shareholders.
1. CACI International Inc. (NYSE: CACI)
CACI International is not just a cybersecurity play but a world-class information technology products, solutions, and services company. They provide information assurance, security, systems integration, reengineering, electronic commerce, and related services. They can design robust cybersecurity infrastructure by looking at a full company’s IT systems.
2. Fortinet Inc. (NASDAQ: FTNT)
Fortinet is a focused network IT security company that offers solutions to the cybersecurity needs of various enterprises, service providers, and government organizations. Their systems utilize multiple security technologies, including antivirus, antispam, firewall, VPN, intrusion prevention, and more. Fortinet saw its net income climb by 24.1% YOY for Q4 2020. At the same time, its revenues grew by 21.0% YOY. This is due to increased billings.
3. Booz Allen Hamilton (NYSE: BAH)
Booz Allen Hamilton Holding Corp. is another technology and management consulting company similar to CACI. The company provides the highest level of analytics, digital, engineering, and cyber solutions, among other services. It serves customers that include the US Government and multinational corporations worldwide.
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Best Momentum Cyber Security Stocks
The following cybersecurity stocks have seen the best returns over the past year. This metric can be good if you believe money will continue to follow.
1. CrowdStrike (NASDAQ: CRWD)
CrowdStrike Holdings Inc.is a holding company with subsidiaries offering a robust cybersecurity platform. They provide a range of products. This includes antivirus and endpoint detection. As well as response, device control, vulnerability management, and threat intelligence. CrowdStrike’s stock price has gone from approximately $80 to 210/share(up 162%) in the past year. On March 5, CrowdStrike completed its acquisition of Humio; this brings to CS a high-performance cloud log management and observability technology capability. The acquisition was for approximately $352 million in cash and $40 million in stock and options. The CS stock price at the time of this deal was $183/share
2. Zscaler Inc. (NASDAQ: ZS)
Zscaler Inc. is a company providing security software and related services. They have a cloud-based web and mobile security platform designed to address cloud application visibility, threat protection, and other networking challenges. Zscaler’s stock price has gone from 75 to 170.32/share in the past year. Their most recent quarter, which ended January 31, saw Zscaler reporting a net loss of $67.5 million compared to its prior-year net loss of $29.2 million. However, it did see a 55.1% YOY growth in its revenues. The company attributed part of its increased revenue growth to accelerating its digital transformation strategy in its earnings results.
3. Cloudflare Inc. (NYSE: NET)
Cloudflare Inc. is an application software company. They offer solutions for cybersecurity, analysis, domain registration, load balancing, and video streaming. Cloudflare’s stock price has gone from 28 to 74.91/share in the past year after a first-quarter earnings announcement where the CEO stated they now have over 4 million customers, with large customers accounting for more than half their revenue.
Final Thoughts
We hope this list of cyber security companies stocks can help you with your investing decisions. Remember, never put more than you can lose at risk, and good luck with your trades!
