Cybersecurity Stocks: The Top 5 for 2022 Investments

As the fear of cyberattacks escalates due to worldwide unrest, investors are asking about the best cybersecurity stocks to buy in 2022.
As the fear of cyberattacks escalates due to worldwide unrest, investors are asking about the best cybersecurity stocks to buy in 2022.

As the fear of cyberattacks escalates due to worldwide unrest, investors are asking about the best cybersecurity stocks to buy in 2022.

Companies are on high alert for Russian hackers. This, in turn, has boosted cybersecurity stocks recently. The conflict in Ukraine has spread beyond its borders. Therefore, as a form of retaliation, there is an expectation of increasing cyber-attacks.

With this in mind, security experts are issuing warnings about a new type of malware that might cause data loss. Companies all over the world are looking for greater security as Russia’s sanctions take effect.

Regardless of what they decide to do, cybersecurity will be a good investment. With cyber-attacks on the rise and more people and businesses at risk, it pays to be on the side of defense. Innovations in cybersecurity are showing great promise in the fight against cyber threats.

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. It’s time to learn about the best cybersecurity stocks to buy if you want to profit from the rising market.

1. Zscaler: Protects Critical Data

  • 35.6 billion dollars in market capitalization
  • 1 Year Revenue Growth: 63%
  • Specialty: Cloud and App Security

Zscaler assists businesses in protecting critical data and apps from cyber-attacks. The Zero Trust Exchange platform from the security firm helps businesses decrease risk while offering quick cloud access. Internet access, digital experience, private access, and cloud protection are the platform’s four main benefits.

The platform handles 160 billion transactions every day across 185 countries. Not only that, but the firm has over 80 industry partners, including Amazon and Microsoft. ZS shares dipped after earnings despite excellent revenue growth due to a weaker-than-expected forecast.

2. CrowdStrike: Guard’s Amazon Web Sevices and Google Cloud

  • $46.12 billion in market capitalization
  • 1 Year Revenue Growth: 64%
  • Specialty: Endpoint and Cloud Security

CrowdStrike is another great cybersecurity stock to invest in because of its industry-leading security. Falcon, the company’s platform, is used to safeguard Amazon Web Services and Google Cloud.

Falcon now has 21 cloud modules that cover identity to the cloud and everything in between. Most importantly, CrowdStrike has a recurring revenue of over $1.5 billion and a client retention rate of over 97 percent. Furthermore, the company is growing by adding more products.

The company’s TAM was $25 billion at the time of its IPO in 2019. It has already doubled in size to $55 billion dollars and is expected to quadruple again by 2025.

3. Palo Alto Networks: The Three Platform Approach to Cybersecurity

  • $57.88 billion in market capitalization
  • 1 Year Revenue Growth: 30%
  • Specialty: Network and Cloud Security

Palo Alto Networks, another prominent internet security supplier, is well-known for its extensive product line. In addition, it mostly serves major enterprises, having 1,077 millionaire accounts in the second quarter.

Furthermore, the digital security organization employs a three-platform approach. Network, Security Automation, and Cloud Security are the three approaches. Stata, Primsa Cloud, and Cortex are the platforms. So far, the strategy is bringing in strong billings (+32%) and revenue (+30%) growth.

Finally, Palo Alto anticipates the momentum to continue in Q3, with revenue/billings growth of 24-27 percent.

4. Check Point Software: The Most Knowledgeable about Cybersecurity

  • $19.29 billion in market capitalization
  • 1 Year Revenue Growth: 6%
  • Specialty: Network and Cloud Security

Check Point is more knowledgeable about online security than the majority of companies. The Israel-based corporation was founded in 1993. Today it is one of the world’s largest cybersecurity firms.

The company is still expanding on all fronts. It has double-digit growth across both platforms. Check Point also has a diverse client base, with Europe, the Middle East and Africa accounting for 49% of revenue. In comparison, the Americas account for 40% of the total, while Asia accounts for 10%.

Most importantly, the cyber security organization is taking substantial steps to expand. Its recent acquisition of Spectral, for example, will enhance its cloud capabilities.

5.  Fortinet: Worldwide, Expanding, and Strong

  • $54.9 billion in market capitalization
  • 1 Year Revenue Growth: 29%
  • Specialty: Network and Cloud Security

Another worldwide cybersecurity company, Fortinet, is expanding beyond its hardware offerings. The company is currently attempting to get a foothold in the cloud computing sector. Existing customers will find it simple to update and add cloud services as a result of the move.

Palo Alto’s major firewall security competition, Fortinet, appears to be winning the war in certain areas. Despite the fact that Palo Alto earns more revenue, Fortinet has a larger operating margin, resulting in higher returns.

Furthermore, despite stronger revenue growth from competitors such as CrowdStrike and Zscaler, Fortinet’s margins remain industry-leading.

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