A 106% surge in revenue resulted in an adjusted EPS of 16 cents, bringing in a much-needed windfall of profits. Online retailers need security solutions to build trust with their customers. With employees in many industries working through the cloud, companies are looking for new solutions to keep their networks safe. As the need for identity security grows for both B2B and B2C businesses, Ping has plenty of opportunity for ongoing growth. Their products are cloud based and can integrate with a wide range of applications.

It also completed a stock split in 2022, initiating a 5-for-1 split in June 2022. For investors looking for a good balance of both sales and profitability growth, Fortinet is one of the best security stocks on the market. Another legacy security software provider, Fortinet (FTNT 0.14%) is also one of the largest cybersecurity companies in the world by revenue and market cap. Like its peer Palo Alto Networks, it has maintained double-digit percentage growth and is highly profitable. But, unlike Palo Alto Networks’ acquisition spree, Fortinet has invested in its organic development of cloud security to remain competitive.

Fortinet, Inc. (NASDAQ: FTNT)

After its earnings report in late August, the stock has been on a tear, gaining almost 54%. ZS stock is up 57% in the last 12 months and is up 100% since closing at a low of $160.92 in mid-May. However, forex trading strategies recent upgrades may not be factoring into the company’s stock price. However, as we near the end of the year, ZS stock is within approximately 12% of its 52-week high set in mid-November.

  • The benefit is that it provides customers with in-depth visibility into all traffic and applications for greater monitoring of potential risks and threats.
  • However, for corporations and institutions, bringing together a growing and shifting set of products creates some significant challenges, causing a change in behavior.
  • As cyber threats continue to grow, individuals and organizations increasingly invest in cybersecurity solutions to protect sensitive data and prevent cyber attacks.
  • A handful of stocks are in adjacent industries, such as aerospace and defense, where security services feature prominently.
  • EBay, Marriott, Wells Fargo, and Target are just a few of the many global companies that have had data breaches in the last decade.
  • However since being named one of Daniel Ives at Wedbush Securities’ top two cybersecurity picks for 2022 on Dec.20, 2021, the stock has shot up 4%.

The company has more than 10,000 customers, including 70% of the Forbes Global 100. The Qualys platform manages over 2 trillion security events per year and handles more than 6 billion IP scans and audits. There are also more than 20 apps, such as for integrated IT, security protections and compliance. Qualys (QLYS, $124.31) is a provider of a comprehensive suite of cloud-based security and compliance solutions. It manages all IT assets for any endpoint, whether on-premises, cloud or mobile. The system also helps to not only discover breaches, but to provide effective remediation actions.

Contributing Author: Retail and Technology Stocks

Nearly 800 customers had ARR (annual recurring revenues) of over $1 million, up by 115 during the past year. A strong identity system is certainly a must-have for security and CyberArk’s solution has the kinds of functions that enterprises need. The move to a hybrid workforce means there is demand for securing external systems and applications. Over the years, Fortinet has invested heavily in its AI solutions, including using sophisticated algorithms to process more than 100 billion cyber events every day.

Nano One Announces Collaboration Agreement with Sumitomo Metal Mining and a C$16.9 Million Strategic Investment

They specialize in endpoint security, which is highly sought after right now. Palo Alto is trading at a low level relative to the financial growth they have experienced this year. They are known for their advanced firewall technology, but are quickly expanding. Both individuals and large corporations see the importance of protecting their digital information.

As more devices and software tools connect from outside of the traditional firewall perimeter, the importance of security monitoring tools such as VM, VMDR and XDR has increased. In many ways, vulnerability management is the foundation of cybersecurity as it provides the dashboard for monitoring all potential security gaps. QLYS’ software can provide critical data about which assets are exposed to specific threats and can increasingly help IT departments prioritize and remediate these vulnerabilities. Cybersecurity ETFs are another great option and can be purchased with your favorite cybersecurity stocks.

Ransomware attack on Colonial Pipeline Co. highlights an obvious area for growth in the technology sector

Using standard types of financial analysis, including looking at revenue and profit growth, levered free cash flow, debt levels and ratios like current ratio, quick ratio or cash ratio. In addition, given the changes in the industry, it’s important to find companies that have well-regarded technology and innovation. Look to trade publications, stories in business publications and customer reviews to find strengths and weaknesses. Corporate America has hiked tech spending on security aiming to protect intellectual property as well as consumer privacy. In addition, Zscaler is the biggest provider of cloud-based web security gateways that inspect customers’ data traffic for malware.

With Palo Alto Networks’ massive scale, the company is able to invest about $1 billion in research and development (R&D) each year. The R&D investments mean that the company has released a large number of updates, upgrades and new systems. This assumes that an organization will be compromised and that cybersecurity systems need to be more comprehensive, such as with response and recovery to breaches. In the latest quarter, Qualys posted revenues of $130.8 million, up 19% year-over-year, and net income of $28.3 million.

Palo Alto Networks (PANW)

Banking, manufacturing, professional services, and government are the industries expected to increase spending the most. Software is expected to be the largest and fast-growing technology group in 2023, with endpoint security the leading Bill williams trader software category. The first cybersecurity company on this list is global technology firm Broadcom, which has built a large portfolio of embedded and mainframe security solutions, as well as payment authentication software.

CACI International is another good example of a cybersecurity stock that offers excellent value. Their products are designed not only to protect internal employee activity, but also to offer secure customer-facing web services. Although this could be a small risk in the short term, Crowdstrike’s innovative technology means their market share is likely to continue growing. Crowdstrike stock currently has a high price tag relative to its revenue growth. Their firewalls now go beyond hardware as they’re building a cloud security platform.

Chris Markoch is a freelance financial copywriter who has been covering the market for seven years. And if recent purchases are any indication, Microsoft isn’t shy about generating growth web3 stocks through acquisition. In July 2021, Microsoft acquired RiskIQ for approximately $500 million. To be completely transparent, Absolute leaves something to be desired financially.

That’s why when considering stocks to add in the new year, cybersecurity stocks deserve consideration. I invite you to keep reading about seven cybersecurity stocks that are on track for a stellar 2022. Many of the stocks in this sector have high P/E ratios, and prices can be volatile and verysensitive to quarterly growth.

Further, cybersecurity stocks span a wide-range of products and services. In addition, some security vendors are shifting to software-based subscription business models from selling hardware appliances. The cybersecurity space has been marked by a preference of customers for point solution expertise as opposed to a winner take all solution. Historically, cybersecurity was best served by firewalls, which provided a ring fence around assets that were physically located on a network.