After Huge Sell-Offs, 3 Top Cybersecurity Stocks Roaring Back

Technology

Published: April 1, 2016 8:25 am

Last Updated: January 13, 2020 11:17 am

In 2014 the absolute hottest sub-sector of technology was cybersecurity, and with good reason. In what seemed like a weekly occurrence, everybody from the U.S. government to major big-box retailers to you name it were getting hacked and valuable information was being compromised. The surge in cyber-crime also put a huge bid under the top stocks in the arena, and some hot initial public offerings also lifted things.

The unfortunate thing for many investors, as is often the case, is they got in late, and when the stocks finally rolled over big time, starting last summer, the carnage was horrific. Like all Wall Street phenomena, what happened is that the street became very enthusiastic toward the companies that were growing revenue, but still losing money hand-over-fist. Then the short sellers circled, and that was all she wrote.

We recently screened the Merrill Lynch tech research database to see which companies they liked, and true to form they have stayed with three of the companies that are not only making money, but are also growing their business. All three are rated Buy at Merrill Lynch and have substantial upside potential.

Check Point Software

This remains one of the top tech stocks to buy on Wall Street for a security presence. Check Point Software Technologies Ltd. (NASDAQ: CHKP) is one of the best in helping customers protect against advanced persistent threats (APTs). 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.