Apps & Software

Citigroup Ponders 7 Top Software Stocks to Buy in This Correction

CrowdStrike

Coverage of CrowdStrike Holdings Inc. (NASDAQ: CRWD) was started with a Buy rating. Citigroup noted that the disaggregation of the corporate network and cyberattack surface, cloud adoption and connected device growth puts CrowdStrike in a leading position to gain more revenues. This occurs as the firm’s model shifts from tactical (protect and prevent) to strategic (detect and respond).

CrowdStrike stock has a 52-week range of $150.02 to $298.48, and it most recently closed at $158.59. Shares are down 22% year to date.

Palo Alto Networks

Citigroup initiated coverage of Palo Alto Networks Inc. (NASDAQ: PANW) with a Buy rating. The firm said that mixed growth and execution trends, leadership transitions and margin contraction have contributed to Palo Alto’s mixed returns and relative underperformance over the past three years.

The stock last closed at $475.47, and it has a 52-week trading range of $311.56 to $572.67. Palo Alto Networks stock is down nearly 15% year to date.

SailPoint Technologies

SailPoint Technologies Holdings Inc. (NYSE: SAIL) was initiated with a Sell rating as a result of slowing customer growth, a chief financial officer role still in transition and limited visibility into the rate and magnitude of margin. Citigroup takes an overall cautious view of the stock.

Shares recently closed at $36.65, and they have a 52-week trading range of $36.45 to $64.19. SailPoint Technologies stock is down 24% year to date.

Zscaler

Coverage of Zscaler Inc. (NASDAQ: ZS) was started with a Buy rating. Citigroup was quick to note that this is the most expensive stock in the cybersecurity universe, on a relative and growth-adjusted basis. The company has seen seven straight quarters of growth acceleration, along with a lower “Microsoft threat” discount relative to cloud native security peers, which has earned the company a deserved premium according to Citigroup.

Zscaler stock has a 52-week range of $157.03 to $376.11, and it most recently closed at $228.88. Shares are down nearly 29% year to date.

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