3 cybersecurity stocks to watch in the stock market today

3 Best Cybersecurity Stocks to Check Out Now

Cybersecurity stocks are a type of investment that is becoming increasingly popular in the stock Exchange as the world becomes increasingly dependent on technology. For the uninitiated, Cybersecurity actions are companies that provide products or services that help protect against cyberattacks. These businesses can range from small start-ups to large multinational corporations. Some of the most popular cybersecurity stocks on the stock market today are names like Crowdstrike Holdings Inc. (NASDAQ: CRWD) and Datadog Inc. (NASDAQ: DDOG). Although there is no guarantee that investing in cybersecurity stocks will be profitable, many experts believe that they offer great potential for growth.

Additionally, many people believe that cybersecurity will become an increasingly important issue in the coming years. Therefore, investing in cybersecurity stocks now can help ensure a healthy return on investment in the future. That being said, if you want to invest in cybersecurity stocks, here are three for your watchlist this week.

Cybersecurity stocks to buy [Or Avoid] Currently

  1. Fortinet inc. (NASDAQ: FTNT)
  2. Palo Alto Networks Inc. (NASDAQ: PANW)
  3. Okta Inc. (NASDAQ: OKTA)

Fortinet (NASDAQ:FTNT)

Fortinet Inc.. (FTNT) is an American multinational corporation that provides cybersecurity solutions to businesses and organizations of all sizes. Notably, Fortinet’s core product is FortiGate, which is a powerful unified threat management system that provides users with comprehensive protection against online threats. Fortinet also offers a wide range of other security products, including FortiAnalyzer and FortiManager, which help enterprises effectively manage their network security. In addition to its products, Fortinet also provides services such as managed services, professional services, and training.

Earlier this month, FTNT announced a beating for its second quarter 2022 financial results. Plunging, the company posted earnings per share of $0.25 per share in the second quarter. Additionally, the company announced a 28.6% increase in revenue on an annual basis to $1.03 billion. Additionally, Fortinet ended the quarter with bookings of $1.38 billion, reflecting a 42% year-over-year increase. “We delivered strong revenue and billing growth in the second quarter driven by a more than 50% year-over-year increase in the number of transactions over $1 million. Large enterprises continue to favor Fortinet’s cutting-edge cost for the performance advantage and integrated platform strategy,commented Ken Xie, Founder, President and CEO.

FTNT shares are down 23% year-to-date and are currently trading at $50.88 on Tuesday afternoon. With that, would it be a good time to buy FTNT shares at a discount?

Source: TD Ameritrade Terms of Service

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Palo Alto Networks (NASDAQ: PANW)

Next, Palo Alto Networks Inc. (PANW) is an American multinational cybersecurity company headquartered in Palo Alto, California. The company offers a range of network security products, including next-generation firewalls, advanced endpoint protection and cloud security.

On Monday, after market close, the company reported better-than-expected fourth-quarter 2022 financial results. In the report, PANW announced fourth-quarter earnings of $2.39 per share, along with revenue of $1.6 billion. Wall Street consensus estimates were earnings of $2.30 a share, on revenue of $1.5 billion. Additionally, Palo Alto saw a 27.2% year-over-year increase in revenue. Meanwhile, its fiscal 2022 revenue rose 29% year-over-year to $5.5 billion.

In addition to this, Palo Alto Networks also announced that its Board of Directors has approved a 3-for-1 stock split. Palo Alto Networks President and CEO Nikesh Arora said, “We were pleased with our fourth quarter results, which included GAAP profitability for the first time in four years. Next-gen security growth, driven by our rapid pace of innovation and strong sales execution, drove our results. While cybersecurity posture remains critical, our integrated three-platform strategy continues to drive deal momentum as we consolidate and simplify our customers’ security architectures.“On Tuesday afternoon, shares of PANW rose more than 11% to $568.56 per share.

PANW Stock Chart
Source: TD Ameritrade Terms of Service

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Following this, we have, Okta (OKTA). In short, Okta markets identity and access management solutions. Its workforce offerings include products to protect and empower employees, contractors and partners. Additionally, the company’s software solutions are delivered through the cloud, and its integrated network provides customers with secure protection and access to a wide range of applications that are critical to business and government needs. Earlier this month, Okta announced that it would release its second quarter fiscal 2023 financial results on August 31, 2022. In the meantime, let’s recap the company’s performance over the past quarter.

During the first quarter of 2023, the company recorded revenue of $415 million. This represents a 65% year-over-year increase. Additionally, Okta recorded a significant increase in its subscription revenue, which grew 66% year-over-year in the first quarter of 2023. Apart from that, the company previously announced its financial outlook for the second quarter of fiscal 2023. In these, the company estimates total revenue of $428 million to $430 million, representing a 36% year-over-year growth rate.

Needless to say, investors are likely to pay close attention to OKTA shares ahead of August 31. Similar to the other names mentioned in this article, OKTA shares were down more than 50% year-to-date at $94.27 on Tuesday afternoon. Could this be an opportunity to acquire OKTA shares at value prices?

OKTA Stock Chart
Source: TD Ameritrade Terms of Service

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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