In a bid to enhance its endpoint security capabilities, Symantec Corp. (SYMC - Free Report) recently announced that it is acquiring mobile threat detection company Appthority and enterprise security provider Javelin.
Specializing in data loss detection and vulnerabilities in mobile applications, Appthority will be integrated into the Symantec Endpoint Protection Mobile (SEP), which was launched last year.
The integration of Appthority’s services into SEP marks another major step by Symantec in endpoint protection in mobile devices. We note that last year, the company bought mobile cybersecurity company Skycure, which provided a major boost to its portfolio.
On the other hand, Javelin specializes in combating directory-based cyber-attacks. As a result, Symantec will integrate Javelin’s technology into its broader endpoint security business.
Focus on Endpoint Protection
Endpoint security, which refers to the security provided on network devices (endpoints) that are linked to a client server, has been a major area of expertise for Symantec.
Lately, cyber security has been a growing threat for organizations of all sizes. The growing security threats and potential hacking attacks had led the company to develop Symantec Managed Security Services -Advanced Threat Protection, thereby delivering more complete attack prevention solutions.
As part of its efforts to enhance endpoint security capabilities, Symantec recently announced upgrades to its IT Management Suite, including real-time endpoint management capabilities and powerful integrations with Symantec Endpoint Protection and Control Compliance Suite.
Acquisitions Bode Well
The two buyouts announced by Symantec reflect its recent aggressive acquisition strategy.
Acquisitions are helping the company to reduce dependence on the PC market and strengthen its position in the enterprise security market.
Symantec had acquired Arizona-based LifeLock a couple of years ago, as part of its efforts to expand its business in the high growth area of next-generation cybersecurity. The company expects the acquisition to be accretive to its earnings in fiscal 2019.
Competition Remains a Concern
The company’s continued focus on endpoint security is helping it gain market share. However, the fast growing nature of the broader cybersecurity market translates into stronger competition for Symantec.
Per Datanyze, Symantec currently holds the third position in the global endpoint protection market, with a share of 12.8%. Notably, IBM’s (IBM - Free Report) BigFix has the biggest share in the market.
Moreover, the company also faces increased competition from bellwethers such as Microsoft (MSFT - Free Report) and Intel (INTC - Free Report) . Other small and medium-sized companies like Kaspersky and Trend Micro are also gaining market share.
However, with continued efforts and strategic steps, Symantec seems to be well poised to benefit from the cybersecurity market, while simultaneously managing competitive pressures.
Symantec currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
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