Top Cybersecurity ETFs

CrowdStrike uses artificial intelligence, machine learning, and behavioral analytics to power its threat detection system. In addition to this advanced technology, CrowdStrike’s customers also benefit from valuable network effects. Each new business that joins the platform helps CrowdStrike’s threat detection system become more intelligent, thereby strengthening the cyberdefenses of everyone on the network. Its revenue soared 86% year over year to $232.5 million in the third quarter, driven by strong customer gains. CyberArk is transitioning to a software-as-a-service (SaaS) model, which is fueling strong increases in recurring revenue and positioning the company to generate higher profits over time.

An intriguing catalyst for Fortinet is the company’s myriad financial strengths. The company features a solid balance sheet along with robust profitability metrics. A key highlight is Fortinet’s nearly 18% net margin, which is up from its median metric of 10% during the past 10 years. As well, it beats out the cybersecurity industry’s median net margin of 2.3%. CrowdStrike is also helping to enable the trend toward cloud-based computing.

CrowdStrike Holdings

With the number of IoT devices set to explode to 75 billion by 2025, according to Statista, demand for CrowdStrike’s endpoint security services should continue to grow briskly in the coming years. Founded 20 years ago, Splunk (SPLK, $89.26) is a pioneer of analyzing log data, which is information generated from IT systems like ERPs (enterprise resource planning). This has proven useful in detecting cybersecurity vulnerabilities in real-time.

Okta (OKTA 4.08%) is a pioneer of identity and access management, which rethinks traditional security by using what’s called zero-trust architecture. This type of identity management constantly requires verification of a user before allowing access to data and applications. If legacy security is a castle with a wall and a moat, then zero-trust security acts more like a counterspy agency. A cloud-native software company, CrowdStrike Holdings (CRWD 1.32%) provides endpoint security — protection for devices such as laptops, PCs, and smartphones, and any other device connected to a network.

iShares Cybersecurity & Tech ETF (IHAK)

According to a report by Grand View Research, the global cybersecurity market was worth $184.93 billion in 2021. The industry is expected to reach a value of $202.72 billion in 2022 and grow at a compound annual growth rate of 12% from 2022 to 2030, reaching a value of $500.70 billion by the end of the forecasted period. This growth is expected to be driven by the increase in cyber-attacks as businesses go digital and a surge in the usage of smart devices across the globe. In 2021, the defense/government segment held the dominant market share and the healthcare segment held the dominant revenue share of the global cybersecurity market. Region-wise, North America held the dominant market share in 2021, and Europe was the runner-up region. The APAC region is expected to grow at the fastest pace over the forecasted period, registering a CAGR of 15%.

In an increasingly mobile world with more devices continually coming online, CrowdStrike is poised to continue growing at a brisk rate. According to Research and Markets, the global network security market size reached a valuation of $4.68 billion in 2021. Experts project that by 2027, the segment will command a valuation of $16.6 billion, representing a CAGR of 23.5% from 2023 estimates.

Why should you consider investing in cybersecurity stocks?

In the first quarter of 2021, Palo Alto’s revenue rose 23% year over year as its billings grew 21%. For the full year, it expects its revenue to rise 20%-21% and for its billings to increase 18%-19%.

• Both sales and earnings are critical factors in the success of a company.
• To determine the best cybersecurity stocks to buy now, we studied industry analysis reports and identified key players operating in the space.
• Privileged accounts refer to accounts that have higher than normal levels of access such as an admin account.
• Check Point is an Israeli cybersecurity company that provides firewalls to more than 100,000 businesses and millions of users worldwide.
• The underlying foundation of the Zscaler Zero Trust Exchange is massive.

On the balance sheet, the company features a cash-to-debt ratio of 10.1, well above the industry median of 3.7. Moving to the income statement, Qualys enjoys outstanding profitability ratios. For example, its net margin is 22.5%, beating out the sector median of 2.3%. Okta expects to generate $822 million to $823 million in revenue in fiscal 2021, which ends on Jan. 31. Yet management pegs its total addressable market for workforce and customer identity management services at roughly $55 billion.

Cybersecurity Stocks: Wide Range Of Products

But, unlike Palo Alto Networks’ acquisition spree, Fortinet has invested in its organic development of cloud security to remain competitive. Palo Alto Networks is the largest pure-play https://forexhero.info/forex-brokers/ cybersecurity operation by revenue and market cap. Now also a leading cloud security provider, this legacy business is highly competitive in the cybersecurity industry.

• For the most part, the growth prospects for cybersecurity stocks remain strong.
• Their tools detect malware on laptops, mobile phones and other devices that access corporate networks.
• The Motley Fool owns shares of and recommends CrowdStrike Holdings, Inc. and Palo Alto Networks.
• Net income was $84.2 million compared to a loss of $96.5 million in the year-ago period.
• The big question is whether the banking crisis will slow venture capital investment in the sector.

Okta is poised for exponential growth in the coming decade, and investors who buy shares today should be well rewarded as it fulfills its tremendous expansion potential. CyberArk Software helps companies defend their most critical IT infrastructure. The Israel-based cybersecurity specialist provides privileged access management services, which guard against those who would use insider credentials to penetrate traditional network defenses. This year, analysts expect Cloudflare’s revenue to rise 43% to $615 million with another narrower loss.