The Best Buys in Cybersecurity
12/08/2017 5:00 am EST
After weeks of sifting through hundreds of cybersecurity stocks on the market, I finally narrowed my list down to the four absolute best to help you build a top-notch cybersecurity portfolio that’s bound to outperform the market and the rest of the industry, notes Brit Ryle, editor of The Wealth Advisory.
First, there’s L3 Technologies, Inc. (LLL). It’s a straight-up government contractor. And it provides more -than just cybersecurity solutions. It also makes those body scanners you have to deal with at the airport.
Next up is Symantec Corporation (SYMC). It’s very similar to Palo Alto but focuses more on the consumer and less on the government. You may be familiar with its flagship product, Norton.
Third is Science Applications International Corporation (SAIC). More than just a mouthful of a name, SAIC is another big-time government contractor. It works with the U.S. Military and the Department of Homeland Security (DHS).
Finally, Palo Alto Networks (PANW) gets the top spot in my cybersecurity portfolio? It gets a slice of every piece of the cybersecurity pie. Its customers include consumers, major corporations, and government entities.
Over 85 of the Fortune 100 and more than 63% of the Global 2000 rely on Palo Alto for their cybersecurity needs. And 12% of the company’s customers fall into the public sector — think local, state, and federal governments. Another 9% are from education, including some of the country’s biggest colleges and universities.
And the customers are spread across the globe with North America accounting for 23%, Europe and Africa making up 27%, and Asia Pacific bringing it home with 30%.
And the company is adding more and more new customers every quarter. In fact, it’s been adding more customers than the previous quarter since it’s been in existence.
And all of those new customers have led to massive revenue growth in subscription services over the past decade. And that growth has been outpacing the industry by leaps and bounds. This year, the company brought in $1.8 billion — a 28% increase over 2016.
All of this success has led to Palo Alto being named a market leader by Gartner for the past six years running and got it on the Fortune magazine’s 2017 list of the top 50 companies changing the world.
A West Point grad and former Army attack helicopter pilot runs Palo Alto Networks. He’s seen war. And he knows the next one will start in cyberspace.
Palo Alto chairman and CEO Mark D. McLaughlin knows that the U.S. is already behind the eight ball when it comes to cyber defense and cyber warfare. Our adversaries have a head start. But he’s been ramping up his company’s products and services for going on both the offensive and the defensive.
His company is the only one giving total protection within one package. Other companies offer piecemeal solutions that have to be mixed and matched. But Palo Alto offers complete peace of mind with its total coverage system.
Not only is Palo Alto offering the only full-package protection to everyone from you and me to the U.S. Military, but it’s also collaborating with some of the biggest names in web development and data networking. And these partnerships bring in big money. The kind of money that grows your top line by 71% each year.
When it comes to cybersecurity, Palo Alto is the best of the best. It has a massive and growing customer base. It’s providing security solutions to consumers, corporations, and governments.
It’s been growing revenue at a rapid clip since being founded. And it has the potential to keep growing them at an average of 20% or more a year for the next decade. That’s why it should be your first investment in a cybersecurity portfolio. Palo Alto Networks is a “buy” anywhere under $145. I have a 12-month price target of $200.