Cybersecurity solution providing companies are benefiting from an increasing requirement for privileged access security on the back of digital transformation and cloud migration strategies adopted by organizations. The heightening need for secure networks and cloud-based applications amid the COVID-19 pandemic-induced remote-working and online-learning wave is also fueling demand for cybersecurity solutions.
Industry participants like
Okta ( OKTA Quick Quote OKTA - Free Report) , Tenable Holdings ( TENB Quick Quote TENB - Free Report) , CrowdStrike ( CRWD Quick Quote CRWD - Free Report) and Cloudflare ( NET Quick Quote NET - Free Report) are gaining from the aforementioned trends.
Amid all the outbreak-related disruptions, hackers and cybercriminals are reportedly taking advantage of the pandemic-induced hype and using it to steal passwords and data. Cybersecurity companies stand to gain from data breaches as the chances of security-related purchases shoot up.
According to a report by Grand View Research, the
global cybersecurity market is expected to witness a CAGR of 10.9% from 2021 to 2028 and reach $372 billion. Moreover, the report stated that the market's growth will be driven by factors like the rising sophistication of cyberattacks.
With the emergence of the more contagious coronavirus variant — Omicron — several parts of the world are grappling with a massive spike in infection rates, leading to stringent lockdowns. Even some parts of the United States are witnessing Omicron variant outbreaks.
Additionally, as vaccination programs will still take several months to reach a major portion of the global population, the current restrictions are likely to be in place for a longer time, thus prolonging the remote-working and online-learning phase. The consistent need for secure networks is thus likely to benefit cybersecurity companies in 2022. Let’s thus take a closer look at some notable cybersecurity stocks that could enhance returns next year.
Okta: It provides an identity management platform for enterprise customers, including customer identity and access management services. The company currently carries a Zacks Rank #2 (Buy). You can see . the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here
Okta Identity Cloud’s capability to consolidate and easily integrate existing applications without compromising security or stability is attracting customers. Its products’ ability to automate a process, secure data and reduce costs is also a positive.
The recent acquisition of Auth0 Inc. has expanded Okta’s product capabilities. Auth0 allows developers to deliver identity and access management tools without having to build them from scratch.
The Zacks Consensus Estimate for Okta’s fiscal 2022 bottom line is pegged at a loss of 52 cents per share, which implies a strong improvement from a loss per share of 75 cents projected 30 days ago.
Tenable Holdings: It is a provider of Cyber Exposure solutions, which is a discipline for managing and measuring cybersecurity risk in the digital era. The Zacks Consensus Estimate for Tenable’s 2022 earnings has been revised upward by a penny to 35 cents per share in the past 30 days.
Tenable is witnessing strong adoption of its solutions. This Zacks Rank #2 company’s enterprise software platform enables broad visibility into an organization's cyber exposure across the modern attack surface and deep insights that help organizations translate technical data into business insights to understand and reduce their cybersecurity risk.
CrowdStrike: It is a leader in next-generation endpoint protection, threat intelligence and cyberattack response services. The Zacks Consensus Estimate for CrowdStrike’s fiscal 2022 earnings has been revised upward by 23.4% to 58 cents per share in the past 30 days.
CrowdStrike’s portfolio strength, mainly the Falcon platform’s 10 cloud modules, boosts its competitive edge and helps add users. Additionally, strategic acquisitions, like that of Humio and Preempt, are expected to drive the growth of this Zacks Rank #3 (Hold) company.
Cloudflare: It focuses on providing security solutions and a plethora of business solution tools, including packages for content delivery, software development kits, website development and analytics tools.
In April 2021, Cloudflare announced that Cloudflare Stream, the company’s video streaming service, is supporting non-fungible tokens (NFTs). This means that creators and developers can embed NFTs in their videos, which affirms ownership rights and reduces the chances of piracy.
Cloudflare carries a Zacks Rank #3. The Zacks Consensus Estimate for fiscal 2022 earnings has been revised upward to a penny from a loss of a penny forecast 60 days ago.