3 Cybersecurity Stocks Set to Shine as Remote Work Drives the Necessity of Safety
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3 Cybersecurity Stocks Set to Shine as Remote Work Drives the Necessity of Safety

2018 has been an exceptionally volatile year for cybersecurity stocks. However, recent developments have shown that this field is not going away anytime soon as remote work and virtualization increase the need for security.

The “small cap cybersecurity stocks” are the three companies that are set to shine as remote work drives the necessity of safety. These companies have a market capitalization below $1 billion and have a low risk for investors looking for long-term growth.

Over the last 18 months, the Covid-19 epidemic has prompted several businesses to adopt more remote operating methods. Firms have had to adjust swiftly to social distancing norms while still being operational. With companies attempting to maintain their work-from-home operations in the age of the ‘new normal,’ the cybersecurity sector is confronted with new difficulties and possibilities. 

Multiple firms’ cybersecurity initiatives, such as the safeguarding of digitally stored IP, trade secrets, and customer data, have been a weak point. One significant example of this challenge was the difficulties that Canadian Nortel Networks had as a consequence of cyber-attacks aimed at stealing trade secrets. 

Many passwords belonging to key officials at Nortel Networks were stolen and exploited to gather secret information about the firm.

McKinsey & Company, Inc.

As we can see from McKinsey & Company’s blueprint for successful cybersecurity firms, industry leaders will need to ramp up their support for distributed companies to deliver remote cybersecurity operating models. 

“According global accountancy group HLB’s 2020 Cyber Security Report, over 50% of organizations experienced security breaches and cyber-attacks in 2020,” said Milad Shojaei, a trainee legal advisor at the Ministry of Justice, and strategy & engagement director at Legal Futures Associate Casedo. “Shockingly, only 42% reported that they were prepared for moving to remote practice, with the majority under threat as a result of Covid.”

With this in mind, rising cybersecurity companies will get a lot of attention as more organizations attempt to beef up their defenses against assaults. This is expected to lead to some unusual stock price changes among public cybersecurity firms. Let’s take a closer look at some of the stocks that might benefit from the increased awareness of the necessity of internet safety in this new era: 

CrowdStrike is a game developed by CrowdStrike (NASDAQ: CRWD)

3 Cybersecurity Stocks Set to Shine as Remote Work Drives the Necessity of Safety

CrowdStrike has seen considerable growth since its IPO in mid-2019, notably as companies scrambled to stay safe in the aftermath of the Covid-19 epidemic. CrowdStrike shares have risen 294.79 percent since the company’s IPO, and 540 percent since the March 13th stock market meltdown in 2020. 

CRWD stock is now trading roughly 10% below its late August high, and with favorable market mood and excellent fundamentals, the company should be poised for significant gains as 2021 develops. 

CrowdStrike’s sales increased by 70% year over year to $1.34 billion in the second quarter of 2021, setting a new high. The company added $150.6 million to its normal revenue for the quarter, bringing total sales to $337.7 billion, up 70% from the previous year. 

“Partly, the investing community is becoming more interested in CRWD shares since the company’s growth is not projected to slow down,” says Maxim Manturov, head of investment research at Freedom Finance Europe. “For the whole financial year, the business forecasts sales of between $1.39 billion and $1.41 billion, up over 60% from the previous year.” CrowdStrike consistently improves its products and services via cloud-based AI and continuous AI analytics.”

“The firm is a market leader in a vast and expanding sector, with a total addressable market of $36.5 billion expected to rise to $43.6 billion by 2023, implying a CAGR of 9%.” CrowdStrike already has over half of the Fortune 500 businesses as customers, as well as 63 Fortune 100 organizations. As a consequence of its location, it should be able to improve revenues and other essential financial metrics. “The average target price is $315, with a 20% potential upside,” Manturov remarked. 

Radware is a software company based in the United Kingdom (NASDAQ: RDWR)

3 Cybersecurity Stocks Set to Shine as Remote Work Drives the Necessity of Safety

Radware may be a bit older than some of the newer cybersecurity companies, but the business, which was created in 1996, has shown tremendous momentum in recent years – and has risen to new all-time highs in 2021, going beyond $30 for the first time since 2000. 

Radware is a cybersecurity and application business based in the United States and Israel that protects data centers, apps, the public cloud, and delivery applications. 

Significantly, the company’s net income increased by over 500 percent year over year in the second quarter of 2021, demonstrating that it has adapted extraordinarily successfully to shifting client needs in the era of the new normal. In fact, Radware has quadrupled its new client reservations, demonstrating that this cybersecurity veteran has lots of room to grow. 

Palo Alto Networks is a networking company based in Palo Alto (NYSE: PANW)

3 Cybersecurity Stocks Set to Shine as Remote Work Drives the Necessity of Safety

Palo Alto Networks is a California-based cybersecurity company that specializes on network and cloud security as well as endpoint protection.

Palo Alto Networks has over 82,000 business clients across 150 companies, and its stock has risen dramatically in recent years, presently trading at an 837.29 percent premium to its New York Stock Exchange debut.

Palo Alto reported a net income of $139 million in the third quarter of 2021, up from $114.6 million the previous quarter.

In Q2 2021, 64 hedge funds had holdings in Palo Alto, up from 61 in the previous quarter. Viking Global is the company’s biggest stakeholder, owning $807.8 million worth of stock. 

Because of the rapid pace of digital change, cybersecurity companies are expected to improve their solutions to better enable remote work. This hospitable atmosphere for businesses may provide stock-buying opportunities, allowing investor portfolios to increase.

The “best stocks to buy on dip today” is a stock market term that describes the practice of buying into a stock at its lowest point in order to make money off of it’s subsequent increase.

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