Top 5 Best Cybersecurity Stocks to Invest in 2021
Cybersecurity has become an essential aspect of modern-day business operations. The rising cases of cyberattacks have put various organizations at risk of losing their essential data and facing severe financial implications. However, this challenge presents an opportunity for investors to make a profit by investing in cybersecurity stocks. In this article, we’ll explore the top five cybersecurity stocks that you should consider investing in 2021.
1. Palo Alto Networks (PANW)
Palo Alto Networks is a leading cybersecurity company that offers advanced security solutions to various organizations, including government agencies and healthcare providers. The company’s products and services encompass network security, cloud security, and endpoint security. In the first quarter of the fiscal year 2021, the company posted a revenue of $946.0 million, representing a 23% increase year over year. Palo Alto Networks is poised to benefit from the rising demand for cloud-based security solutions, making it a good investment option.
2. Fortinet (FTNT)
Fortinet is another cybersecurity company that has been experiencing steady growth over the years. The company’s products and services include firewalls, virtual private networks, and other network security solutions. In the third quarter of 2020, the company posted a revenue of $841.4 million, representing a 20% increase year over year. Fortinet has a strong financial position, with no debt and a healthy cash flow. With the increasing demand for remote work and cloud-based solutions, Fortinet is well-positioned for growth in 2021.
3. CrowdStrike (CRWD)
CrowdStrike is a cloud-based cybersecurity company that provides endpoint protection, threat intelligence, and cyberattack response services. In the third quarter of 2020, the company posted a revenue of $232.5 million, representing a 86% increase year over year. The company’s clientele includes some of the world’s leading technology companies, making it a promising investment option. CrowdStrike’s cloud-based approach to cybersecurity is also well-suited for the current remote work environment.
4. Splunk (SPLK)
Splunk is a data analytics and cybersecurity company that provides software solutions for security operations, fraud detection, and compliance management. Its products and services target industries such as healthcare, financial services, and government agencies. In the third quarter of 2021, the company posted a revenue of $559.5 million, representing a 11% increase year over year. With its data-driven approach to cybersecurity, Splunk is well-positioned to capitalize on the growing demand for security analytics in 2021.
5. Zscaler (ZS)
Zscaler is a cloud-based cybersecurity company that provides secure access service edge (SASE) solutions to its clients. In the fourth quarter of 2020, the company posted a revenue of $125.9 million, representing a 46% increase year over year. Zscaler’s focus on cloud-based security solutions makes it well-suited for the current remote work environment. The company’s strong financial position and growing customer base make it a promising investment option.
Final Thoughts
The rising need for cybersecurity solutions presents investors with an opportunity to capitalize on the growth of this sector. The top five cybersecurity stocks mentioned above offer excellent investment options for those looking to invest in this industry. Additionally, investing in these stocks provides diversification to your portfolio while allowing you to benefit from the growth and development of the cybersecurity sector in 2021.
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