Investing in the Future: Top 5 Cybersecurity Stocks to Watch in 2021
The world has gone digital, and so has crime. Cybersecurity threats have become a prevalent concern as data breaches, hacks, and cyberattacks become more frequent and sophisticated. With the ever-increasing demand for online security services, the cybersecurity industry is expected to skyrocket in the coming years, making it an attractive option for investors.
In this article, we will look at the top 5 cybersecurity stocks to watch in 2021, based on factors such as market performance, growth potential, and financial stability.
1. CrowdStrike (CRWD)
First on our list is CrowdStrike, a leading cybersecurity company that provides cloud-based endpoint protection. The company utilizes advanced AI and machine learning technology to detect, prevent, and respond to a wide range of cyber threats. In 2020, CrowdStrike’s revenue surged by 84% YoY, indicating its continued growth potential.
Furthermore, CrowdStrike’s innovative approach to endpoint security has gained recognition, resulting in several high-profile partnerships, including cloud infrastructure providers Amazon Web Services (AWS) and Microsoft. With a market cap of over $50 billion and an impressive list of clients, CrowdStrike is definitely a cybersecurity stock to watch in 2021.
2. Palo Alto Networks (PANW)
Palo Alto Networks is another popular cybersecurity company that specializes in network security solutions. The company offers a comprehensive suite of products, including firewalls, endpoint protection, and cloud security services. Its cutting-edge technology has earned it recognition from peers and several industry awards.
In recent years, Palo Alto Networks has shown consistent revenue growth, with its fiscal year 2020 revenue amounting to $3.4 billion, indicating its stability and potential for long-term growth. Furthermore, the company has diversified its offerings by acquiring several companies, such as Twistlock and Zingbox, to expand its market share and strengthen its position.
3. Fortinet (FTNT)
Fortinet is a global provider of next-generation cybersecurity solutions in the form of network security appliances aimed at small and medium enterprises. The company’s products and services protect networks, applications, and data from cyber threats. This cybersecurity stock has shown steady growth over the years, with a 19% YoY increase in revenue recorded in 2020.
Fortinet’s acquisition of enSilo in 2019 to enhance its endpoint security capabilities has paid off, with its client base expanding to include government organizations and critical infrastructure. Its comprehensive threat intelligence is a competitive advantage that sets it apart in the cybersecurity industry.
4. Okta (OKTA)
Okta is a cloud-based identity and access management company that secures digital identities across various organizations. With the increasing need for secure remote work solutions, Okta’s offer is highly valuable. Its revenue in 2020 grew by over 40% YoY, affirming its sustained growth potential.
The company’s partnership with major cloud providers like AWS and Google Cloud has expanded its reach and diversified its offerings. Besides, Okta’s specialized services in identity governance and administration (IGA) and adaptive multi-factor authentication have won over customers in various industries.
5. Zscaler (ZS)
Zscaler is a cloud-based cybersecurity company that protects enterprise networks and apps from cyber threats. The company uses an integrated platform to provide secure access to the internet and cloud resources, enabling organizations to mitigate risk and improve visibility. Its revenue in 2020 was up 44% YoY, an indication of its growth potential.
Zscaler has earned recognition over the years, notably by Gartner Inc, which named it a leader in the 2020 Magic Quadrant for Secure Web Gateways. Its approach to cloud security aligns with the growing need for cloud-based cybersecurity solutions, making it a promising option for investors.
Conclusion
The cybersecurity industry is continuously growing, with the demand for online security solutions on the rise. The five cybersecurity stocks highlighted in this article offer investors exposure to an industry that is set to boom in the coming years. CrowdStrike, Palo Alto Networks, Fortinet, Okta, and Zscaler are unique in their offerings, financial stability, and steady growth potential, making them the top cybersecurity stocks to watch in 2021. Investing in these stocks could prove to be a worthy investment in the long run.
