In light of short-term fluctuations, I am looking at developments at two of our technology holdings ...
The 5 Best Cybersecurity Stocks
09/29/2017 5:00 am EST
Cybersecurity companies are popping up with the speed of light and some of them will most likely pay off handsomely. But it is tough to ferret out which of the speculative companies will be those who not only survive, but flourish, notes Nancy Zambell, editor of Wall Street's Best Daily.
But there are also many more established companies that have added cybersecurity to their roster of services and products—companies who have already proven their excellence by years of profits.
Cisco Systems (CSCO) is one of the giants, $160 billion in market cap. The company provides networking products related to the communications and information technology industry worldwide, both mobile and wired.
Cisco’s cybersecurity business accounts for only some $500 million in revenues, just a smidgen of its total sales, but it is responsible for pushing the company’s revenues into double-digit territory.
Palo Alto (PANW) has a market cap of almost $14 billion. PANW provides firewall protection to corporations and governments worldwide. The company beat analysts’ estimates by 13 cents in its latest quarter, and 22 Wall Street analysts are forecasting earnings increases for the next year.
CyberArk Software (CYBR) is an Israeli company that provides privileged account security systems to the U.S. and other countries. It has a market cap of $1.5 billion and is expected to grow at double-digit rates for the next five years.
FireEye (FEYE) was recently upgraded by Stephens & Co. and Morgan Stanley to ‘Overweight.’ This $3 billion market cap company provides vector-specific appliance and cloud-based solutions detect and block known and unknown cyberattacks.
Gigamon (GIMO) provides visibility and control of data-in-motion traversing enterprise, federal, and service provider networks (network test equipment) in the United States, rest of Americas, Europe, the Middle East, Africa, and the Asia Pacific.
Also one of the smaller ideas, GIMO has a market cap of $1.7 billion, and rumors abound that it is a takeover target. The shares were just upgraded by Dougherty to ‘Buy.’
While it’s very unfortunate—and costly—that cybercrime has escalated to this level, the bright side is that from adversity comes opportunity. And the opportunity is here for investors.
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