Top Cybersecurity Stocks Have Been Crushed: Merrill Lynch Has 3 to Buy Right Now

Investing

Published: January 15, 2016 10:25 am

Last Updated: January 13, 2020 2:59 pm

Cybersecurity was red hot in 2014 and the first half of last year. However, since last summer the stocks has been absolutely emasculated, and they may be providing aggressive investors an outstanding entry point. In addition, the falling prices also have heated up mergers and acquisitions chatter. In fact, just this week rumors started to swirl that CyberArk Software Ltd. (NASDAQ: CYBR) was in discussions with an industry leader about being acquired.

Cybersecurity is one of the six key themes being highlighted at Merrill Lynch this year. We screened the Merrill Lynch research data base for the companies it feels are best positioned not only for 2016, but for years to come. We found three and all are rated Buy.

Check Point Software Technologies

This remains one of the top tech stocks to buy on Wall Street for a security presence, and it is said to be the one in talks with CyberArk. Check Point Software Technologies Ltd. (NASDAQ: CHKP) is one of the best in helping customers protect against advanced persistent threats. It is considered a worldwide leader in securing the Internet, providing customers with uncompromised protection against all types of threats, reducing security complexity and lowering the total cost of ownership. Check Point first pioneered the industry with FireWall-1 and its patented stateful inspection technology.

The company’s revenue growth rate has accelerated almost every quarter over the past year and a half. Many on Wall Street think that Check Point should see year-over-year accelerating growth in product licenses, particularly as the security firewall refresh appears to be in the beginning stages. Acquiring CyberArk could add a fresh product offering to the company’s already industry leading portfolio.