Artificial Intelligence is fast gaining a wider footprint in the cybersecurity sphere on the back of new technological advancements and rising security threats. AI’s capability and machine learning models are strengthening cybersecurity for industries as diverse as financial services, healthcare and leisure. This is a major reason for investors to consider investing in the stocks exposed to this growing trend.
Upbeat Outlook for AI in Cybersecurity Market
According to Markets and Markets
data, the artificial intelligence in cybersecurity market is projected to be worth $38.2 billion by 2026 from $8.8 billion in 2019. The highest compounded annual growth rate for this market is projected to be 23.3% during the forecast periodwith North America accounting for the largest share.
The increasing adoption of IoT and the increasing number of connected devices are primarily boosting AI’s widespread implementation in the cybersecurity domain. AI’s deployment is also being driven by escalating cyber threats, data breaches and the vulnerability of wireless networks to security hazards.
VIDEO AI: Key to Boosting Cybersecurity
Losses incurred through cybercriminal activities are estimated to reach a whopping $6 trillion annually by 2021, per a
report by Cybersecurity Ventures. It is, therefore, not surprising that stringent steps are being taken and technologies, such as artificial intelligence are being explored to detect security dangers.
AI-powered security solutions take the game a notch higher because of their smart detection algorithms. Machine learning, which is a subset of AI, allows systems to automatically learn and improve from gathered experiences. This allows systems to regulate actions and even carry out functions for which the same may not have been programmed.
Coming to cybersecurity, what makes artificial intelligence truly stand out is the speed with which it detects a potential threat. Per a 2018 CSO
article, organizations take an average of 191 days to spot data breaches. But with machine learning data models, it is far easier to process millions of files and detect anomalies. Given AI’s efficiency in identifying and checking cybersecurity threats, it is understandable why the area has garnered substantial investor attention. Five Stocks to Buy
We have hand-picked five stocks for you that stand to benefit directly from the above-mentioned trend. These stocks carry a Zacks Rank #2 (Buy) and outpaced the broader S&P 500 index annually.
Visa Inc. ( V - Free Report) operates as a payments technology company. The financial firm is using artificial intelligence to spot financial crimes, such as money laundering and fraud.
The Zacks Consensus Estimate for current-year earnings has been revised 1.1% upward in the past 30 days. The company’s stock price has outperformed the Financial Transaction Services Market over the past year (+26.9% vs +17.3%). You can see
. the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here Fortinet, Inc. ( FTNT - Free Report) provides broad, integrated and automated cybersecurity solutions. The company is using artificial intelligence to sense and block malicious activity in computer networks.
The Zacks Consensus Estimate for current-year earnings has moved 2.4% north in the past 30 days. The company’s share price has surpassed the Security Market over a year (+42.8% vs +17.2%).
Accenture plc ( ACN - Free Report) provides consulting, technology and outsourcing services. The company is currently constructing a facility in San Antonio that will work on cybersecurity in government operations.
The Zacks Consensus Estimate for current-year earnings has been inched 0.1% up in the past 30 days. The company’s stock price has exceeded the Consulting Services Market in a year’s time (+15% vs +13.7%).
Five9, Inc. ( FIVN - Free Report) provides cloud software for contact centers. The company is in the process of developing machine learning algorithms that help businesses automate customer support. Five9 formed a partnership with the search engine giant Google in 2018 to work on an AI contact center software.
The Zacks Consensus Estimate for current-year earnings has been raised 3.2% in the past 30 days. The company’s stock price has outshined the Internet - Software Market in a year (+63.2% vs +19.1%).
EPAM Systems, Inc. ( EPAM - Free Report) offers software product development and digital platform engineering services. The company partnered with Positive last year to work on a research-driven Cybersecurity R&D Lab. Positive is a cybersecurity consulting and research firm.
The Zacks Consensus Estimate for current-year earnings has risen 2% in the past 30 days. The company’s stock price has outperformed the Computers - IT Services Market over the past 12-month period (+36.8% vs +5.9%).
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