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4 Hot Cybersecurity Stocks to Buy for a Prosperous 2018
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A series of cyber attacks kept cybersecurity stocks rallying throughout the year. Earlier this year, two back-to-back ransomware attacks were reported — WannaCry or WannaCrypt in May and Petya in June — followed by the massive data breach at Equifax (EFX) in September. In addition to these, the data theft and ransom paid by Uber disclosed in November further fueled the bullish momentum of the stocks in this space.
Notably, the above-mentioned data breaches were a reality check, displaying how cyber attacks can escalate companies’ market and operational risks, and tarnish the brand image equally. Hence, the firms have now realised the immediate need for stricter security measures, which, we believe, will compel companies to further increase spending on cyber security.
Per a recently released report by Gartner, global enterprise security spending will reach $96.3 billion in 2018 — marking 8% growth from the 2017 expected level of $89 billion. Another market research firm, Markets and Markets, in its July 2017 report stated that worldwide cybersecurity spending will likely reach $137.85 billion in 2017 and $231.94 billion by 2022.
Encouragingly, cybersecurity companies will be the ultimate gainers in 2018 due to this elevated spending, similar to this year. It should be noted that the ETFMG Prime Cyber Security ETF (HACK - Free Report) has been up 20% in the year-to-date period, almost in line with the S&P 500's gain of 20.2%.
Here, we have picked four stocks which have the potentials to make the most of this opportunity and make impressive share price momentum in 2018.
Moreover, these have a favorable combination of a solid Zacks Rank #1 (Strong Buy) and #2 (Buy), with a VGM Score of A or B. The VGM Score rates each stock on their combined weighted styles, helping to identify those with the most attractive value, best growth, and most promising momentum, across the board. Back-tested results show that this combination can handily beat other stocks.
Fortinet, Inc. (FTNT - Free Report) , headquartered in Sunnyvale, CA, is a provider of network security appliances and Unified Threat Management network security solutions to enterprises, service providers and government entities worldwide. The stock carries a Zacks Rank #2 and has a VGM Score of B.
Varonis Systems, Inc. (VRNS - Free Report) provides an innovative software platform that allows enterprises to map, analyze, manage and migrate their unstructured data. It also carries a Zacks Rank #2 and has a VGM Score of B. You can see the complete list of today’s Zacks #1 Rank stocks here.
Booz Allen Hamilton Holding Corporation (BAH - Free Report) is engaged in providing management and technology consulting services to the U.S. government in the defense, intelligence and civil markets. The stock, which carries a Zacks Rank #2, has a VGM Score of A.
Leidos Holdings, Inc. (LDOS - Free Report) , along with its subsidiaries, provides technology and engineering services and solutions in the defense, intelligence, civil and health markets. This Zacks Rank #2 stock has a VGM Score of B.
Bottom Line
Considering the above-discussed factors, it makes sense to invest in this hot industry group as cybersecurity players are likely to witness impressive growth in the next year as well.
Zacks Editor-in-Chief Goes ""All In"" on This Stock
Full disclosure, Kevin Matras now has more of his own money in one particular stock than in any other. He believes in its short-term profit potential and also in its prospects to more than double by 2019. Today he reveals and explains his surprising move in a new Special Report.
Image: Bigstock
4 Hot Cybersecurity Stocks to Buy for a Prosperous 2018
A series of cyber attacks kept cybersecurity stocks rallying throughout the year. Earlier this year, two back-to-back ransomware attacks were reported — WannaCry or WannaCrypt in May and Petya in June — followed by the massive data breach at Equifax (EFX) in September. In addition to these, the data theft and ransom paid by Uber disclosed in November further fueled the bullish momentum of the stocks in this space.
Notably, the above-mentioned data breaches were a reality check, displaying how cyber attacks can escalate companies’ market and operational risks, and tarnish the brand image equally. Hence, the firms have now realised the immediate need for stricter security measures, which, we believe, will compel companies to further increase spending on cyber security.
Per a recently released report by Gartner, global enterprise security spending will reach $96.3 billion in 2018 — marking 8% growth from the 2017 expected level of $89 billion. Another market research firm, Markets and Markets, in its July 2017 report stated that worldwide cybersecurity spending will likely reach $137.85 billion in 2017 and $231.94 billion by 2022.
Encouragingly, cybersecurity companies will be the ultimate gainers in 2018 due to this elevated spending, similar to this year. It should be noted that the ETFMG Prime Cyber Security ETF (HACK - Free Report) has been up 20% in the year-to-date period, almost in line with the S&P 500's gain of 20.2%.
Here, we have picked four stocks which have the potentials to make the most of this opportunity and make impressive share price momentum in 2018.
Moreover, these have a favorable combination of a solid Zacks Rank #1 (Strong Buy) and #2 (Buy), with a VGM Score of A or B. The VGM Score rates each stock on their combined weighted styles, helping to identify those with the most attractive value, best growth, and most promising momentum, across the board. Back-tested results show that this combination can handily beat other stocks.
Fortinet, Inc. (FTNT - Free Report) , headquartered in Sunnyvale, CA, is a provider of network security appliances and Unified Threat Management network security solutions to enterprises, service providers and government entities worldwide. The stock carries a Zacks Rank #2 and has a VGM Score of B.
(Looking for the Best Stocks for 2018? Be among the first to see our Top Ten Stocks for 2018 portfolio here.)
Varonis Systems, Inc. (VRNS - Free Report) provides an innovative software platform that allows enterprises to map, analyze, manage and migrate their unstructured data. It also carries a Zacks Rank #2 and has a VGM Score of B. You can see the complete list of today’s Zacks #1 Rank stocks here.
Booz Allen Hamilton Holding Corporation (BAH - Free Report) is engaged in providing management and technology consulting services to the U.S. government in the defense, intelligence and civil markets. The stock, which carries a Zacks Rank #2, has a VGM Score of A.
Leidos Holdings, Inc. (LDOS - Free Report) , along with its subsidiaries, provides technology and engineering services and solutions in the defense, intelligence, civil and health markets. This Zacks Rank #2 stock has a VGM Score of B.
Bottom Line
Considering the above-discussed factors, it makes sense to invest in this hot industry group as cybersecurity players are likely to witness impressive growth in the next year as well.
Zacks Editor-in-Chief Goes ""All In"" on This Stock
Full disclosure, Kevin Matras now has more of his own money in one particular stock than in any other. He believes in its short-term profit potential and also in its prospects to more than double by 2019. Today he reveals and explains his surprising move in a new Special Report.
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