Best Cybersecurity Company Shares to watch in 2022

5 min read

Cybersecurity is one of the most important advanced technologies in the internet age, as well as for Web 3.0 and 5G to come. All modern cyberattack tactics to steal confidential data from businesses or individuals are on the lookout for weak links to begin an attack against. It has resulted in the necessity for tens of thousands of cybersecurity firms to address the problem with a variety of strategic cybersecurity solutions. Top Cybersecurity companies have begun to offer profitable cybersecurity stocks in order to profit on the global tech market’s stability. Let’s look at the best 10 cybersecurity stocks to buy in 2022 if you want to make a decent return.

The following are the top 10 cybersecurity stocks to watch in 2022:

  1. Microsoft (NASDAQ: MSFT)
  2. Palo Alto Networks (NASDAQ: PANW)
  3. Fortinet (NASDAQ: FTNT)
  4. Check Point Software Technologies (NASDAQ: CHKP)
  5. Cloudflare, Inc. (NYSE: NET)
  6. Darktrace Plc. (LSE: DARK)
  7. SentinelOne (NYSE:S)
  8. Splunk (NASDAQ: SPLK)
  9. CrowdStrike Holdings (NASDAQ: CRWD)
  10. Zscaler (NASDAQ: ZS)

1. Microsoft (NASDAQ: MSFT)

By no means is Microsoft a pure-play cybersecurity stock. MSFT stock, on the other hand, is not to be overlooked, as that segment of the company generates $10 billion in revenue. One reason for that is the company’s ability to incorporate its security solutions into its Office 365 software which is already located in the cloud.

And, if previous acquisitions are any indicator, Microsoft isn’t averse to expanding through acquisition. Microsoft paid around $500 million for RiskIQ in July 2021. This was in addition to its July acquisition of CloudKnow Security.

In 2021, Microsoft stock is up 50%, with the company’s Teams collaboration software accounting for a large part of that increase. The corporation, on the other hand, is continuing to expand into other high-growth areas like the metaverse. Nonetheless, MSFT stock is a good buy for individuals who want to invest in cybersecurity businesses but have a low risk tolerance.

2. Palo Alto Networks (NASDAQ: PANW)

Palo Alto Networks has a proprietary security technology called App-ID that categorises network traffic by application, user, and content, as the name implies. Customers gain in-depth access into all traffic and applications, allowing for better monitoring of possible risks and threats. Consumers can get end-to-end security without having to use another company because the company’s platforms are stand-alone solutions.

Following the introduction of two new platforms earlier this year, the earnings report may have verified to investors that the company is beginning to produce recurring revenue. Mark Cash of Morningstar recently improved the company’s moat rating from narrow to wide, raising its fair value estimate to $585 per share from $550.

3. Fortinet (NASDAQ: FTNT)

Current price: US$344.52

Market cap: US$56.33 billion

When it comes to cybersecurity stocks, Fortinet should undoubtedly be considered. In today’s hyperconnected environment, Fortinet provides a clear benefit to consumers. In mid-December, FTNT stock was added to the Nasdaq-100 index. Fortinet provides VPN services, among other things.

The stock of FTNT has risen 135% this year, and it’s safe to assume that if you’re not a shareholder, you’ve probably lost out on the biggest gains. The top cybersecurity vendors stock has now closed positive for four weeks in a row and is at all-time highs. Nonetheless, this is a high-quality stock that soared by 1,138% in its first ten years on the market. Fortinet is a good purchase for 2022 and beyond, given the high demand for the company’s goods and services.

4.Check Point Software Technologies (NASDAQ: CHKP)

In terms of market capitalization, CHKP is a smaller player in the cybersecurity complex. It is, nonetheless, one of the world’s major providers of internet security solutions. Check Point specialises in internet, intranet, and extranet infrastructure security.

Year to far, the stock has outpaced its peers, rising 18.9% to over $138.61 per share. Due to geopolitical tensions between Russia and Western countries, this upward momentum is unlikely to slow down. In the next two years, net sales are expected to increase moderately, rising 5.7% to $2.29 billion in 2022 and 4.9% to $2.4 billion in 2023.

Long-term investors, on the other hand, will be interested in the company’s strong profitability. In 2022, CHKP’s estimated net margin would be 34.7 percent, down from 37.6 percent in 2021. It also has a sizable cash pile of $3.78 billion at the end of 2021, which is a positive sign in this inflationary environment for the corporation.

5. Cloudflare, Inc. (NYSE: NET)

Current price: US$116.42

Market cap: US$37.68 billion

NET stock is a global cloud services provider that improves the performance and security of applications. Cloudflare’s security products include API shields, bot management, distributed denial-of-service protection, page shields, rate limiting, secure sockets layers, and transport layer security encryption, among others.

NET is one of the largest cybersecurity stocks in this panel, with a market capitalization of roughly $30.27 billion. Given the company’s enormous market capitalization, it has a spectacular equity growth narrative, with net sales expected to increase 41.9% to $931 million in 2022 and 33.7% to $1.24 billion in 2023, respectively. NET shares, on the other hand, are predicted to generate a marginal free cash flow of 0.62 million this year, rising to $34.6 million in 2023.

6. Darktrace Plc. (LSE: DARK)

Current price: US$452

Market cap: US$3.16 billion

Last April, Darktrace, a company that utilises artificial intelligence to detect threats and vulnerabilities inside IT networks rather than building perimeter barriers, floated its shares at 250 pence. Darktrace is a leading cybersecurity company that develops cyber-threat defence technology solutions all over the world. Enterprise immune system, industrial immune system, cyber-AI analyst, Darktrace antigena, and other cybersecurity solutions are among the company’s offerings.

Financial services corporations, healthcare organisations, media and entertainment, education, and important national infrastructure organisations are all served by this cybersecurity firm. Across all geographic areas and customer sizes, the company saw substantial revenue growth. Its client base increased by 39.6% to 6,531.

7. SentinelOne (NYSE:S)

SentinelOne is another pure-play cybersecurity vendor that has recently gone public. SentinelOne’s IPO, which took place in June 2021 and raised $1.2 billion in cash and valued the firm at $10 billion, was the largest ever for a cybersecurity company.

This small firm competes with CrowdStrike by providing a cloud-based endpoint security technology. Its capacity to detect and resolve cybersecurity risks automatically has been positively appreciated by the market. SentinelOne is a fast-growing corporation that saw its sales more than double in 2020 due to the pandemic.

8. Splunk (NASDAQ: SPLK)

Splunk, a long-time leader in data analytics, makes software that helps businesses sift through logs of data, monitor digital activity, and organise data breach responses. Even though its platform predates cloud computing, the company has been rapidly transferring users to newer cloud-based versions of its software.

Splunk is a crucial aspect of a rising number of enterprises’ security and monitoring activities, and data analytics is a fast-growing section of IT management. In the next few years, the company anticipates its annualised recurring revenue to double. Splunk is a value stock, especially when considering the company’s business fundamentals like as sales and profitability, which are still in the works.

9. CrowdStrike Holdings (NASDAQ: CRWD)

Current price: US$195.21

Market cap: US$44.77 billion

CrowdStrike is a cloud-native software firm that specialises in endpoint security, which includes protection for devices like laptops, PCs, and servers, as well as any other device linked to a network. CrowdStrike is especially well-suited for facilitating remote work because it is cloud-based.

Machine learning (a sort of artificial intelligence) is used by CrowdStrike’s software to detect security breaches and track down attackers. It’s also simple to roll out to the millions of people who work from home and the billions of machines that are online. To better serve its customers, the company has continuously extended the number of modules available on its platform, as well as new integration agreements with other IT firms to ensure that data protection is uniform across an organization’s IT infrastructure.

CrowdStrike has experienced rapid growth, and the firm is now the largest pure-play security vendor in terms of market valuation. CrowdStrike is primed to continue growing at a rapid pace in an increasingly mobile environment with more devices coming online all the time.

10. Zscaler (NASDAQ: ZS)

Current price: US$239.15

Market cap: US$33.50 billion

Zscaler, another cloud-native security firm, works with endpoint security services to keep data safe. Another of the major pure-play cybersecurity stocks, the company has been rapidly boosting its sales.

Zscaler began with a cloud computing security software-as-a-service platform, but it has subsequently expanded to include internet security and end-user monitoring. With so many individuals working from home, end-user monitoring is becoming more common. Zscaler is well positioned to profit from this tremendous market, with worldwide spending on cloud computing estimated to top $1 trillion yearly this decade.

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