Also notable in this sector is the ETFMG Prime Cyber Security ETF (HACK -0.41%). Holding 57 stocks, the ETF invests in many relatively small companies in the cybersecurity industry. The fund manages $1.4 billion of assets and also has an expense ratio of 0.6%. With $4.8 billion of assets under management in early 2023, First Trust NASDAQ CEA Cybersecurity ETF (CIBR -0.07%) is the largest of its kind. The ETF is composed of 35 stocks in the cybersecurity industry and has an annual expense ratio of 0.6% (or $6 in annual fees for every $1,000 invested), making it an affordable option.

Another recent pure-play cybersecurity startup to debut on the stock market is SentinelOne. SentinelOne’s initial public offering (IPO) in June 2021, the largest ever for a cybersecurity company, raised $1.2 billion in cash and valued the company at $10 billion. The stock has fallen below its IPO price due to SentinelOne’s slowed revenue growth and a difficult year for the stock market in 2022. It competes with CrowdStrike since it runs a cloud-based endpoint security platform.

They might continue to change as the industry evolves, but demand for cybersecurity skills remains strong. Today’s IT climate requires knowledge of large security platforms, detection and response technologies, and even sometimes distributed systems. RSA remains an independent company within STG’s security portfolio, which also includes Trellix and Skyhigh Security.

• The stock is up 8.09% since the results and currently trades at $135.02.
• Nevertheless, not all cybersecurity companies have seen growth recently.
• Additionally, it is simple to deploy to the millions of people who work from home and the trillions of online devices.
• To further demonstrate its commitment to the industry, GuardForce integrated eight of these subsidiaries, showcasing competitive intentions to other players in the sector.
• The company’s product offering has recently expanded beyond network security to include cloud security and tools to help automate security operations.

Within those two decades, the company has specialized in the security and tracking industry. Although SPCB falls under the penny stock category, it’s worth noting that it has been in operation for over 20 years. SuperCom is a global provider of secure and trusted Public Safety, IoT, and M2M solutions. It’s headquartered in Israel and has offices in Europe, North America, and Asia. No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research.

Current Analyst Ratings

Cloud security also involves establishing clear security policies and procedures for cloud use and ensuring that all users of cloud services understand their responsibilities for maintaining security. In addition, cloud security often requires compliance with industry regulations and standards, such as HIPAA, GDPR and PCI DSS. These 10 simple stocks can help beginning investors build long-term wealth without knowing options, technicals, or other advanced strategies. Here are the 10 top cybersecurity companies that are publicly traded, according to the latest data from eSecurity Planet. It allows users to have secure and reliable access to cloud applications.

Corporate America has hiked tech spending on security aiming to protect intellectual property as well as consumer privacy. Further, Congress has finally passed legislation funding infrastructure projects, which is expected to include funding for federal, state and local cybersecurity infrastructure. Some cybersecurity firms aim to use artificial intelligence to get an edge on hackers. Thoma Bravo on Oct. 11 agreed to buy ForgeRock for $23.25 a share in an all-cash deal valued at about $2.3 billion. The deal represented a 53% premium to ForgeRock’s closing share price on Oct. 10.

We then sourced the hedge fund sentiment for each stock using Insider Monkey’s database of over 900 elite hedge funds. We narrowed down our selection to stocks that were the most popular among hedge funds and ranked them in ascending order of the number of hedge funds that have positions in them. Along with each stock, we have included the hedge fund sentiment, analyst ratings, and top shareholders.

Okta’s platform has the benefit for extension into new market categories, such as with SIEM (Security Information and Event Management). Analysts’ average price targets courtesy of S&P Global Market Intelligence. While Paul Meeks thinks that these sectors are not completely immune to a recession, he thinks that they are not going to suffer as much as other areas within tech. Still, some computer security firms could get a boost from new federal government initiatives. “Multi-product platforms have gained momentum and are closer to solving the challenge of staying innovative in subsegments historically defined by boom and bust product cycles,” said Borges. This form of ledger technology is what’s behind cryptocurrencies and other tech trends.

Cybersecurity Stocks Headlines

Additionally, the technology secures workloads for the public cloud and private cloud. And there is also a system for protecting IoT (Internet-of-Things) devices. Founded 20 years ago, Splunk (SPLK, $89.26) is a pioneer of analyzing log data, which is information generated from IT systems like ERPs (enterprise resource planning). This has proven useful in detecting cybersecurity vulnerabilities in real-time. During the fourth quarter, revenues jumped by 33% year-over-year to $510 million and cash flows came to $76 million. Besides these technologies, Fortinet also has offerings like encryption applications, universal zero trust network access, and security for LANs (Local Area Networks) and WLANs (wide-area networks).

The Canadian cybersecurity sector is an attractive growth market, and the biggest players by market cap may be a place for interested investors to begin. In the fiscal second quarter ended Jan. 31, Zscaler reported revenues of $387.6 million, up 52% on a year-over-year basis. The company’s cash flows were $89.5 million and it had $1.9 billion in the bank. And as a result, S will likely keep showing up on these lists of the best cybersecurity stocks to buy for years to come. A key factor to the success of the go-to-market strategy has been partnerships with Managed Security Service Providers (MSSPs).

Cybersecurity Stocks With the Most Momentum

Google-parent Alphabet (GOOGL) last year acquired cybersecurity firm Mandiant in an all-cash $5.4 billion deal. A newcomer to the cybersecurity ETF space, the Global X Cybersecurity ETF (BUG -0.29%) launched at the end of 2019. The fund managed $727 million of assets in early 2023 and has an expense ratio of 0.51%. The Global X Cybersecurity ETF is also more concentrated, with only 23 stocks in its portfolio. The fund has outperformed its competitors on this list for most of the time since inception.

Now also a leading cloud security provider, this legacy business is highly competitive in the cybersecurity industry. Shares trade for a relative value compared to its younger, high-flying, cloud-native rivals. SentinelOne (S -1.49%) is another recent pure-play cybersecurity company to be publicly listed. Its initial public offering (IPO) in June 2021 raised $1.2 billion in cash and valued the company at $10 billion, making SentinelOne’s IPO the largest ever for a cybersecurity company.

If you know which cybersecurity companies to invest in, they can yield good returns in the coming years. It is projected to grow as hybrid work environments become the norm and things like data breaches become more frequent. CrowdStrike Holdings https://g-markets.net/helpful-articles/trading-the-inverted-hammer-candle/ is a cloud-based company that provides endpoint security. There is a slew of top companies in the cybersecurity market, namely Palo Alto Networks, Fortinet, Cisco, CrowdStrike Holdings, IBM, Cyberark Software, Trend Micro, and Okta.

Is cybersecurity a good investment?

Identity management is a process that involves the management of the digital identities of users in an organization. It is an essential component of cybersecurity that focuses on establishing and maintaining secure access to systems, applications and data. Identity management involves creating, managing and deleting user identities and assigning access rights and privileges to those identities. BlackBerry recently published a report on cyber threats, highlighting the security issues facing small businesses and public cloud platforms.

These organizations are becoming critical in helping customers manage the complexities of cybersecurity. They also generally have large customer bases and focus on best-of-breed technologies. During the fourth quarter, revenues soared by 92% to $126.1 million and the customer base rose by 50% to over 10,000. The number of customers with ARR (Annual Recurring Revenue) of more than $100,000 grew by 74% to 905. Founded in 2013, SentinelOne (S, $14.80) is a pioneer in using AI for cybersecurity. The platform is called Singularity XDR and it has various autonomous capabilities.

Deloitte has recognized IronNet Inc as one of the top 50 fastest-growing cybersecurity firms, and Fast Company has ranked it among the top 100 most innovative companies. It offers a comprehensive range of services, including perimeter security, remote monitoring, access control, and surveillance. Like the U.S., Canada is home to a lot of pure-play cyber stocks, as well as some diversified listings. Here are some of the most popular stocks for those interested in cybersecurity trades.

These stocks, usually priced below $5 per share, represent smaller companies in the cybersecurity industry, offering the potential for significant returns as they capitalize on the rising need for their services. However, GuardForce’s astute management observed that the growing interest in cybersecurity stocks wasn’t providing the company with sufficient traction. CrowdStrike Holdings (CRWD) is an endpoint security company, which provides protection for devices that connect to a network, such as laptops and PCs, as well as servers. CrowdStrike also has integration agreements with other tech companies to protect data across entire IT infrastructures.

Fortinet provides end-to-end cybersecurity infrastructure products and services, such as firewalls, antivirus tools, intrusion prevention and endpoint security. The company’s cybersecurity platform can address critical security challenges and can protect data across digital infrastructure systems, whether in networked, application, multi-cloud or edge environments. IBM’s security division offers customers an advanced and integrated portfolio of enterprise security products and services. IBM X-Force helps businesses and organizations integrate security solutions into their everyday functions, and provides help with risk assessment, incident detection and threat response.

Nearly 800 customers had ARR (annual recurring revenues) of over $1 million, up by 115 during the past year. However, the company has had to make tough transitions, such as migrating to the cloud. “I’ve spoken to dozens of customers and partners in the last few months, and they all face similar challenges,” said Udi Mokady, founder and CEO of CyberArk, on the latest earnings call. While there are big competitors in the identity market, including blue chip stock Microsoft (MSFT), Okta has the advantage of being neutral.

To get intraday penny stocks update (every 5-10 minutes), please signup for a free account. And lastly, CyberArk offers an investment program, employee recognition program, and tuition reimbursement. Cisco (4.4 stars from Glassdoor) and Microsoft (4.3) are two standouts to consider. Fortinet offers benefits like unlimited PTO, a health savings account, and a 401(k) to employees. Fortinet is known for its firewalls but excels elsewhere as well, including in SIEM and EDR. He spent five years as a staff reporter at The Wall Street Journal, and has also written for The Washington Post and Toronto Star newspapers, as well as financial websites such as The Motley Fool and Investopedia.