Apps & Software

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

SentinelOne

This is perhaps a lesser-known stock in the industry, but it offers a very attractive entry point. SentinelOne Inc. (NYSE: S) operates as a cybersecurity provider in the United States. Its Singularity Platform delivers artificial intelligence-powered autonomous threat prevention, detection and response capabilities across an organization’s endpoints and cloud workloads, enabling seamless and automatic protection against a spectrum of cyber threats.

The company recently reported its first earnings as a publicly traded stock, with revenue growth of 121%  above expectations and adjusted profit in line with views. Annual recurring revenue (ARR) increased 127%, including the acquisition of Scalyr, the company said. The number of customers with ARR over $100,000 grew 140% year over year.

Goldman Sachs has set an $82 price target. The consensus target is $76.46, and the last SentinelOne stock trade on Monday was reported at $61.00.

Tenable

This company went public in 2018 and may be the hidden gem in the Goldman Sachs universe. Tenable Holdings Inc. (NASDAQ: TENB) engages in the development of security software solutions. It offers Cyber Exposure, which is a discipline for managing and measuring cybersecurity risk in the digital era. Its products include Tenable.io, Tenable.sc and Nessus Professional. The firm delivers solutions in the field of application security, cloud security, compliance, energy, finance, health care, and retail.

Over 27,000 organizations around the globe rely on Tenable to understand and reduce cyber risk. As the creator of Nessus, Tenable extended its expertise in vulnerabilities to deliver the world’s first platform to see and secure any digital asset on any computing platform. Tenable customers include more than half of the Fortune 500, more than 25% of the Global 2000 and large government agencies.

The Goldman Sachs price target on Tenable stock is $61. The $60.38 consensus target is slightly lower, and Monday’s closing trade was at $48.22 a share.


While the whirlwind around the top stocks in the industry has changed over the years as the pace of massive hacker attacks has grown, the need for corporate America and government is increasing every year. These top stocks offer investors solid ways to play the segment in a multitude of areas.