Best Cybersecurity Stocks 2023

Cyber Security ETFs seek to provide investors with access to companies whose primary revenue is through cybersecurity technology and services. While some may be highly specialized and focus entirely on the software, hardware and services related to cybersecurity, some funds will have a broader reach into the technology sector’s aerospace and defense aspects. Once new clients are brought in using its identity products, the company is then able to cross-sell its other products to gain additional share of its client’s cybersecurity spending wallet. Demand for cybersecurity products and services remains steady, even in a rough economic climate. If you want to invest in cybersecurity companies but aren’t currently looking to invest in a single stock, you could opt for ETFs, mutual funds, and robo-advisor portfolios. Cisco Systems is a hardware manufacturer that provides network security products and services for businesses, governments, telecom, and other sectors.

• Companies with quarterly EPS or revenue growth of over 1,000% were excluded as outliers.
• At the end of 2020, 45% of its revenue was from the Americas, 43% from Europe and 12% from Asia-Pacific, the Middle East and Africa.
• And with global spending on cloud computing expected to exceed $1 trillion annually this decade, Zscaler is well-positioned to profit from a massive secular growth trend.
• These new cyberattacks are flying under the radar due to the complexity of their techniques.
• Today, the company offers an array of products for cloud security, endpoint security and security analytics.
• The company reported fourth-quarter 2022 revenues of $1.28 billion, up 33.1% from $963.6 million in the prior-year quarter.

Infrastructure monitoring involves using specialized tools and software that collect data from various sources within an IT infrastructure, such as logs, network traffic and system performance metrics. This data is analyzed in real-time, and alerts are generated when anomalous or suspicious activities are detected. Infrastructure monitoring tools also provide dashboards and reports that enable security teams to identify security threats and respond to them quickly. Identity management systems typically include authentication mechanisms, such as passwords, biometric identification or multi-factor authentication, to verify the identity of users before granting access to resources.

Infrastructure Monitoring

Cybersecurity has long-term tailwinds, and our Factor Grades and Quant Ratings can help you make vital tactical investment decisions. Finding knowledgeable investment resources is a great way to be a successful investor in volatile markets. Starlink is Elon Musk’s high-speed broadband satellite-internet service that uses many constellation satellites in low Earth orbit to provide coverage everywhere, focusing on remote and underserved areas.

This tends to lower the costs and complexity while improving the overall results. In addition, Rapid7 (RPD) and Qualys specialize in vulnerability management services. When the bear market eases, investors might consider the Global X Cybersecurity https://forexhistory.info/ ETF (BUG) for a more broad exposure to the sector. Billings, a key sales growth metric, disappointed for TENB stock and CHKP stock. Both computer security firms and hackers are expected to make use of generative AI tools.

Companies that relied on upsells during the last earnings season are the hardest hit

As we see the numbers and realize the growth potential and need in the cybersecurity sector, we have one more stock recommendation. We consider NLOK one of the best cybersecurity companies despite having only a buy recommendation and C- growth grade. It is a long-established brand that should increase sales given its Avast acquisition.

Investing in cybersecurity companies can help support the development of innovative technologies that protect against cyber threats and safeguard sensitive data. Cybersecurity ETFs are another great option and can be purchased with your favorite cybersecurity stocks. For all of your investments, stay focused on the long-term potential of these fast-growing companies, since individual stock prices can be highly volatile from month-to-month and year-to-year. Technology that helps the digital world to stay safe is rapidly evolving and proliferating, and cybersecurity companies will reap the financial benefits accordingly. A long-time leader in data analytics, Splunk (SPLK 0.8%) provides software that helps companies sift through logs of information, monitor digital activity, and orchestrate responses to data breaches. Although its platform predates cloud technology, the company has been migrating customers to newer cloud-based versions of its software.

Global X Cybersecurity ETF

In addition, some security vendors are shifting to software-based subscription business models from selling hardware appliances. Trellix, the name given to the merged entity of FireEye and McAfee Enterprise, has appeared on 15 of our top security products lists. As Trellix made XDR its primary focus, it spun off much of McAfee’s cloud business as Skyhigh Security to focus on SASE use cases.

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 https://day-trading.info/ 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. The IBD Computer Software-Security group ranks No. 42 out of 197 industry groups that IBD tracks.

Top cybersecurity stocks in 2023

While cybersecurity has pros and cons, its growth potential and importance make it a compelling investment opportunity. Conduct thorough research and consult with a financial advisor before deciding. Once you have identified potential cybersecurity companies, you can analyze them to determine their financial health, competitive positioning and growth potential.

While not without occasional missteps and performance issues, Microsoft’s rise in the security market has been good news, especially in a world that’s still very much Windows-centric. Rapid7, Inc. is a cybersecurity solutions company focused on cloud-native solutions focused on software developments that utilize the cloud to develop and run scalable applications for cybersecurity risk management. Despite market volatility, technology like cloud computing should experience tailwinds. The focus on digital transformation is seeing a secular shift to cloud computing and software as a service (SaaS), benefiting cybersecurity, as depicted below. The main purpose of cybersecurity is to protect all organizational assets from both external and internal threats as well as from disruptions caused by natural disasters.

The company’s fourth quarter earnings reached $202.3 million, a 10% increase from 2016’s fourth quarter. VpnMentor contains reviews that follow the strict reviewing standards, including ethical standards, that we have adopted. Such standards require that each review will take into consideration the independent, honest and professional examination of https://bigbostrade.com/ the reviewer. That being said, we may earn a commission when a user completes an action using our links, at no additional cost to them. On listicle pages, we rank vendors based on a system that prioritizes the reviewer’s examination of each service, but also considers feedback received from our readers and our commercial agreements with providers.