Zscaler ( ZS Quick Quote ZS - Free Report) recently launched its security assessment program to assist organizations to study the potential impact of SolarWinds’ ( SWI Quick Quote SWI - Free Report) supply-chain attack across their enterprise.
In the Dec 14 SEC Filing, SolarWinds disclosed that its Orion network monitoring products rolled out between March and June have suffered from a highly sophisticated, manual supply-chain attack. The company stated that the attack might have jeopardized the servers of nearly 18,000 of its customers. The attack is connected with a data breach at FireEye.
Notably, on Dec 8,
FireEye ( FEYE Quick Quote FEYE - Free Report) revealed a cyberattack, in which the attackers had stolen the “Red Team” tools used by its officials for testing customer security. According to FireEye, the cyberattack was intended to distribute a malware called SUNBURST on SolarWinds’ Orion business software updates. Zscaler, Inc. Price and Consensus New Security Program to Ensure Cyber Protection
Zscaler’s newly launched security program intends to provide enterprises with firsthand expertise on the attack, insights on their security structure and enterprise internet traffic, along with tools and guidance to protect their organization.
Moreover, the company’s Zero Trust Exchange Platform is targeted to curb the impact of SUNBURST by preventing command-and-control activities. It also enhances enterprise security by restricting the movement of hackers across enterprise systems by building a zero-trust architecture.
Additionally, the program requires security experts to conduct a security policy audit, which will ascertain that organizations adhere to Zscaler’s recommended best practices for protection.
A Surge in Data Breaches Fuels Prospects
Zscaler’s shares have surged 346.2% year to date compared with the Zacks
Internet – Services industry’s growth of 33.4%.
The company largely benefits from the increasing cyberattacks due to the ongoing wave of digital transformation amid the coronavirus crisis. Moreover, the pandemic-induced remote working environment has bolstered demand for the company’s cloud-based cybersecurity solutions and networking products.
Additionally, strong adoption of the company’s Zero Trust Exchange platform across enterprises is a major positive. Notably, Zscaler’s dollar-based net retention rate stood at 122% in first-quarter fiscal 2021, up from 120% in the year-ago quarter, primarily driven by significant traction in the Zero Trust Exchange platform.
Moreover, as cited by the company, its in-line cloud security platform processes more than 150 billion requests on a daily basis. Further, it raised guidance for fiscal 2021 calculated billings from $710-$720 million to $755-$765 million, backed by strong momentum in its security platform.
Zacks Rank & Another Stock to Consider
Zscaler currently carries a Zacks Rank #2 (Buy).
Another top-ranked stock in the broader technology sector is
PerkinElmer ( PKI Quick Quote PKI - Free Report) . PerkinElmer sports a Zacks Rank #1 (Strong Buy). You can see . the complete list of today’s Zacks #1 Rank stocks here
Long-term earnings growth rate for PerkinElmer is currently pegged at 19.5%.
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