Apps & Software

Goldman Sachs Sees Cybersecurity Demand Exploding: 5 Red-Hot Stocks to Buy Now

Palo Alto Networks

This continues to be one of the most dominant players in the industry. Palo Alto Networks Inc. (NASDAQ: PANW) provides cybersecurity platform solutions worldwide. The company provides firewall appliances and software; Panorama, a security management solution for the control of appliances and software deployed on an end-customer’s network as a virtual or a physical appliance; and virtual system upgrades, which are available as extensions to the virtual system capacity that ships with physical appliances.

Palo Alto Networks also offers subscription services covering the areas of threat prevention, uniform resource locator filtering, malware and persistent threat, laptop and mobile device protection and firewall, as well as cyberattacks, threat intelligence and data loss prevention. In addition, the company provides professional services, including architecture design and planning, configuration and firewall migration, as well as online and in-classroom education training services and support services.

The company sells its products and services through its channel partners, as well as directly to medium to large enterprises, service provider, and government entities operating in various industries, including education, energy, financial services, government entities, health care, internet and media, manufacturing, public sector and telecommunications.

The Goldman Sachs price target is $535, and the consensus target for Palo Alto Networks is $479.51. The shares closed at $476.12 on Monday.

Ping Identity

This company is at the forefront of cybersecurity and the stock has awesome growth potential. Ping Identity Holding Corp. (NYSE: PING) is a leader in identity access and management. Its products safeguard enterprise applications and data by providing controls around user authentication, access and more.

Ping’s single-sign-on technology helps streamline user workflow by providing a single password for multiple applications to reduce log-ins. Additional product features include consumer identity management, Internet of Things and application programming interface management. Ping differentiates with a history of complex deployments across hybrid networks.

Ping’s core solution is at the heart of one of the biggest trends in security software: the dissolving network perimeter and security based on identity rather than physical location inside a corporate network perimeter. While demographic tailwinds were already favorable as the incremental workforce prefers work-from-anywhere (not inside the corporate perimeter) and on any device (not just corporate-issued PCs), this trend is expected to accelerate in a post-pandemic world as the remaining workforce is becoming conditioned to this.

The $32 Goldman Sachs price target compares to a $32.50 consensus target and the $25.26 closing share price for Ping Identity stock on Monday.