Cyber threats are escalating in both prevalence and sophistication.
So, the imperative for advanced protection in the realm of cybersecurity stocks, has never been greater. With the digital landscape undergoing relentless attacks, cybersecurity stands out as a critical bulwark and a lucrative long-term investment sphere. As McKinsey & Co. illuminates, we’re eyeing a staggering $2 trillion market in cybersecurity, underscoring its prominence in the tech sector.
Notably, some cybersecurity firms are basking in the glow of surging revenues and impressive profit margins. Others are actively navigating these challenges to minimize losses and pivot to profitability effectively. Given the soaring demand for cybersecurity solutions, all are poised to flourish. After all, a single cyber breach can result millions in losses, spanning lost data to formidable legal battles.
Moreover, with global reliance on protection tools against cyber malice gaining momentum, now’s the time to scout for the top cybersecurity stocks poised for a rally. Let’s look at three stocks that merit your attention today.
Check Point Software (CHKP)
In the bustling tech sector, Israel’s Check Point Software (NASDAQ:CHKP) emerges as a unique cybersecurity leader for evolving enterprise threats. It is keenly focus on holistic defense, evident from the strategic $490M acquisition of Perimeter 81. This deal reinforces its commitment to safeguarding both cloud and on-premise assets, especially for remote users.
Moreover, Check Point’s Q2 numbers for 2023 paint a narrative of growth. It shows a formidable rise in subscription revenue championed by stalwarts such as CloudGuard, ThreatCloud AI, and Harmony E-mail. Additionally, a robust 11% year-over-year (YOY) growth and the management’s buoyant outlook for the latter half can’t be ignored.
Furthermore, with a forward price to earnings ratio of 17, notably 25.5% lower than the sector median, Check Point offers a compelling value proposition. Also, its commitment to shareholders shines through in its recent decision to repurchase a substantial 2.6 million shares. The investment totaled a remarkable $325 million, making it a provider of incredible value.
Fortinet (NASDAQ:FTNT) briefly cast a shadow over an otherwise sunny investment landscape. Its unexpected guidance cut led to a steep 20% drop, yet a silver lining for savvy investors lies beneath this. Its prowess lies in an extensive suite of security solutions. This spans from resilient firewalls and SD-WAN to state-of-the-art zero-trust access solutions and cloud security.
Moreover, in the trailing twelve months, it has notched total revenue and free cash flow soaring beyond 25% and 54%, respectively. While recent fluctuations may have raised a few eyebrows, the outlook for 2023 shines brightly, with predictions pointing towards a robust 24% revenue bump in sales.
Gen Digital (GEN)
Gen Digital (NASDAQ:GEN) might initially sound like a whisper amidst tech giants. Its stellar portfolio of Norton, Avast, and LifeLock elevates its stature to a resonant roar.
This powerhouse was birthed from the strategic merger of Norton LifeLock and Avast in September 2022. The union turbocharged Gen Digital, with a staggering 65 million premium subscribers under its belt and a global reach spread across 150 nations.
Moreover, its financial results are nothing short of impressive. A steadfast commitment to a $3 annual earnings per share finds validation in its sixteenth straight quarter of growth. The real eye-catcher is the robust 43% YOY surge in operating income and the artful maneuvering of merger efficiencies. They pushed margins to a commendable 57.6%.
Furthermore, with anticipated non-GAAP earnings per share between $1.95 to $2.02 for 2024, GEN stock stands out as an enticing pick, especially at a forward price-to-earnings ratio of 10.
On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the biedexmarkets.com.com Publishing Guidelines