While it certainly seems like technology is the big winner this year, in truth just 10 stocks have driven 95% of the gains in the venerable S&P 500. Most of the tech stocks driving those gains are getting pushed higher by the tsunami of interest in artificial intelligence (AI). Though AI will have a huge impact on life as we know it (some think the technology could replace search engines), one of the biggest issues for consumers, corporations and the government will continue to be cybersecurity.
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Cybersecurity is one tech silo that is always in demand. Every year, hackers and cyberspace criminals get more sophisticated and force corporations and government agencies to make sure they have the best possible security for their data. The companies that dominate cybersecurity software remain among the best tech ideas now with AI.
We screened our 24/7 Wall St. cybersecurity stock universe looking for companies with Buy ratings and strong positions in the industry. Six top stocks continue to stand out, and they look to remain on top in a field that is constantly evolving.
It is important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.
CrowdStrike
This cybersecurity giant’s stock is still way below its 52-week high and is still offering an outstanding entry point in front of next week’s earnings. CrowdStrike Holdings Inc. (NASDAQ: CRWD) provides cloud-delivered protection across endpoints and cloud workloads, identity and data. The company offers threat intelligence, managed security services, IT operations management, threat hunting, Zero Trust identity protection and log management.
CrowdStrike primarily sells subscriptions to its Falcon platform and cloud modules through its direct sales team that leverages its network of channel partners.
Still down a stunning 30% from highs printed early last year, shares of this preeminent company offer investors one of the best ways to participate in the huge growth proposition cybersecurity offers.
Macquarie has a $175 price target on CrowdStrike stock. The consensus target is lower at $170.51 but still well above Thursday’s closing share price of $149.61.
24/7 Wall St.CyberArk Software
This company has less than a $6 billion market cap, which may make it a prime takeover target. CyberArk Software Ltd. (NASDAQ: CYBR) develops, markets and sells software-based security solutions and services in the United States, Europe, the Middle East and elsewhere.
The company’s solutions include the following:
- Privileged Access Manager offers risk-based credential security and session management to protect against attacks involving privileged access.
- Vendor Privileged Access Manager combines Privileged Access Manager and Remote Access to provide fast, easy and secure privileged access to third-party vendors.
- Endpoint Privilege Manager is a software as a service (SaaS) solution that secures privileges on the endpoint.
- Cloud Entitlements Manager is a SaaS solution that reduces risk that arises from excessive privileges by implementing least privilege across cloud environments.
Furthermore, CyberArk’s robust Identity and Access Management as a Services offers adaptive multi-factor authentication (MFA), single sign-on, secure Web sessions, application gateway, identity lifecycle management and directory services, as well as customer identity services providing authentication and authorization services, MFA, directory and user management to enable organizations to provide their customers with easy and secure access to websites and applications.
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Additional offerings include Secrets Manager Credential Providers, to provide and manage the credentials used by third-party solutions, and Secrets Manager Conjur for cloud-native applications.
D.A. Davidson’s target price is $185, while CyberArk Software stock has a consensus target of $179.63. Thursday’s close was at $155.06.
Fortinet
This stock has done well but still offers a reasonably attractive entry point. Fortinet Inc. (NASDAQ: FTNT) provides broad, integrated and automated cybersecurity solutions in the Americas, Europe and elsewhere.
The company’s products and services include the following:
- FortiGate hardware and software licenses provide various security and networking functions, including firewall, intrusion prevention, anti-malware, virtual private network, application control, web filtering, anti-spam and wide area network acceleration.
- The FortiSwitch product family offers secure switching solutions for connecting customers to their end devices.
- The FortiAP product family provides secure wireless networking solutions.
- FortiExtender is a hardware appliance.
- The FortiAnalyzer product family offers centralized network logging, analyzing and reporting solutions.
- The FortiManager product family provides centralized network logging, analyzing and reporting solutions.
- The FortiWeb product family provides web application firewall solutions.
- The FortiMail product family includes secure email gateway solutions.
- FortiSandbox technology delivers proactive detection and mitigation services.
- FortiClient provides endpoint protection with pattern-based anti-malware, behavior-based exploit protection, web-filtering and an application firewall.
- FortiAuthenticator is a zero trust access solution.
- FortiGate VM is a network firewall virtual appliance.
- The FortiToken product family is for multi-factor authentication to safeguard systems, assets and data.
- FortiEDR/XDR is an endpoint protection solution that provides both machine-learning anti-malware protection and remediation.
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