In the current security scenario, where enterprises are transitioning their workloads and data to the cloud, every point on the network is vulnerable to security breaches.
With growing migration of workloads to the cloud, sensitive business data is constantly transferred between SaaS applications, IaaS, data centers, remote users, IoT devices, and like, giving cyber-criminals access to wider attack surfaces and more points of entry.
Understanding the Prospects of Zero Trust Model
Notably, per a ResearchAndMarkets report, the Global Cloud Security market is expected to hit $241.1 billion by 2025, at a CAGR of 11% from 2019 to 2025.
However, the firm notes that lack of awareness about cloud security the small and medium organizations and fear of losing confidentiality are some factors restraining market growth.
Per IHS Markit survey authorized by Fortinet (FTNT - Free Report) , 74% of respondents have moved their applications back to private infrastructure from the cloud due to security concerns.
Year-To-Date Price Performance
Traditional security models operate under the view that everything within an organization's network can be trusted. However, with technology such as AI and ML being increasingly adopted and integrated into various phases of business process, cyber-attacks are becoming more sophisticated.
Moreover, inside attacks on sensitive data are increasing at a rapid pace than standard security controls can keep up. Per Verizon DBIR 2019, 34% of cyber-attacks were committed by insiders.
Thus, adopting new security practices that can stop threats from spreading once within an organization’s network is the need of the hour.
In the Zero Trust approach to cybersecurity, the network and the vulnerabilities are assumed to be constantly evolving and indiscernible. This means that perimeter security is no longer enough to protect the organization. A core tenet of Zero Trust is to keep a lookout for malicious activities in all internal and external traffic, and identify the areas of improvement. Summing up, the model follows one rule — “Never Trust, Always Verify”.
Usually, when a company inks a deal with a cloud vendor, it often thinks that the security aspect will also be taken care of by the vendor, which is not the case. This is where companies need to invest in deals with separate security vendors.
5 Security Stocks to Gain From Zero Trust Model
Security vendors are constantly upping their efforts to tap the aforesaid areas of concern and cash in on the lucrative opportunities. They are increasingly trying to enhance the performance of organizations in a hybrid cloud environment, while maintaining their ability to manage risks.
Let’s take a look at the five cyber security stocks that are actively working in tandem with the Zero Trust model to secure the cloud better:
Fortinet is benefiting from growing demand for its Security Fabric architecture and a broad range of hybrid and multi-cloud deployments. Notably, the Security Fabric suit is based on the Zero Trust policy.
Recently, the company announced that FortiGate-VM, which is powered by the Fortinet Security Fabric, will support the VMware NSX-T Data Center to help customers consolidate security infrastructure and extend it across multi-hypervisor environments, public and private clouds.
Fortinet, which sports Zacks Rank #1 (Strong Buy), surpassed the Zacks Consensus Estimate for earnings in all the trailing four quarters, the average beat being 14.38%. You can see the complete list of today’s Zacks #1 Rank stocks here.
CyberArk’s (CYBR - Free Report) offering, Alero, combines Zero Trust access, biometric multi-factor authentication and just-in-time provisioning into one SaaS-based solution. This offering is driving customer adoption.
The Zacks Rank #2 (Buy) stock surpassed the consensus estimate for earnings in all the trailing four quarters, the average beat being 47.69%.
Fortinet peer Palo Alto Networks (PANW - Free Report) introduced its comprehensive cloud security suite, Prisma, which follows the Zero Trust strategy in May. The company is gaining from this platform as evident from the 9,000 customers acquired within a short span.
This Zacks Rank #3 (Hold) stock outpaced the Zacks Consensus Estimate for earnings in all the trailing four quarters, the average beat being 12.35%.
Moreover, in May, Proofpoint (PFPT - Free Report) announced the acquisition of Meta Networks, a provider of zero trust network access, to strengthen the firm's cloud security offerings.
This Zacks Rank #3 stock surpassed the Zacks Consensus Estimate for earnings in all the trailing four quarters, the average beat being 30.03%.
Check Point’s (CHKP - Free Report) Infinity platform, which is based on the principles of Zero Trust approach, is a major growth driver.
This Zacks Rank #3 stock surpassed the consensus estimate for earnings in all the trailing four quarters, the average beat being 1.51%.
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