Are you interested in the best cybersecurity stocks to buy now? Great! we are to present you with Insider Monkey’s latest article. Actually, cybersec is much more than protecting your privacy and data, as it means considerable profit as well.
As we use internet or more and more things in our digital new world, the more we need to protect our data, information, and privacy. This year, when we have had to cope with the first strike of a world-wide pandemic in the last one hundred years, we also had to realize that we couldn’t do without the online world. We were enforced to go under self-isolation, without contacting personally to anyone. We had to spend our days lonely among the four walls, and those who live in a family house, were really lucky. It’s not enough to click carefully, but we need the protection of cyber-security companies. What’s more, investing in them can bring us quite a considerable amount of profits.
As our world grows more self-isolated, the digital becomes an ever-present part of our lives. Clicking away carelessly, you not only expose your sensitive data to potential malicious actors, but you could be putting your finances, family or even workplace at risk.
This is where the booming world of cyber security steps up. Be it at home, in the office or even walking around your local park, as long as you’re online, you are already interacting with a firewall, some monitoring software, data leakage protection solutions, etc. All these means of protection come at a price that gets steeper the more competitive the market becomes. So much so, that the cyber security market size was estimated in value at $149.67 billion in 2019 and is expected to reach $304.91 billion by 2027, growing at a CAGR of 9.4% from 2020 to 2027.
With blockchain, IoT and the digitalisation of every service imaginable, the need for sophisticated, multi-layered security solutions will keep growing at an increasing rate. What is even better is that according to Gartner – a leading technology market researcher – the cybersecurity market remains at a steady growth even in these COVID-stricken days. Before curfews, lockdowns and mask wearing became a part of our daily lives, the market was expected to grow 7.8% by the end of 2020. As expected, once the wave of socio-economic measures caused other markets to crash and burn, this one powered through with a moderate slowdown in growth but still achieved an increase of 2.4%. This makes it a viable option for investment as it is expected to not only recover, but get a boost as the world slowly gets back up to speed.
Cyber security can influence the stock market too. In the past few years we’ve seen huge breaches in companies like Sony, Target, Microsoft and many more. They promptly caused their stocks to sink and were usually followed by a proportional lawsuit. Just recently, FireEye (FEYE) – one of the security industry giants who ironically was involved in investigating the aforementioned breaches, fell victim to a breach in its own security. The disclosure of the attack caused their shares to drop 7% instantly in after hours trading.
So, what are the best cybersecurity stocks to buy now? We started with Global X Cybersecurity ETF’s (BUG) holdings to identify the leading cybersecurity stocks. The Global X’s ETF didn’t include Cloudflare (NET), so we also added Cloudflare as a potential candidate. Overall, there were 29 stocks in our initial list. Then we ranked all of these 29 stocks using Insider Monkey’s hedge fund sentiment data and identified the top 10 cybersecurity stocks among hedge funds.
Our research has shown that hedge fund sentiment data is a very useful way of identifying stocks with huge upside potential. We have been recommending a portfolio of 12-20 stocks (using hedge fund sentiment data in our selection process) in our premium monthly newsletter since March 2017. Our diversified portfolio of stock picks returned 145% since March 2017, vs. 67% gain for the S&P 500 ETFs. You can download a free sample issue here. Since hedge fund sentiment data was helpful in identifying market beating stocks, we decided to use this data to identify the best cybersecurity stocks to buy now.
And now without a further ado, let’s check out what Insider Monkey has brought up with. We have picked up two companies, as usual. The first one today is Proofpoint Inc (NASDAQ: PFPT) standing on the fifth spot. The company reported 37 hedge funds and total value of hedge fund holdings of $489 million. The company was launched 8 years ago, in 2002 as an email security company, but since then it has extended its services to meet the demands of the modern offices. Now they cover outbound data loss protection, social media coverage and various other vulnerable spots that could allow the wrong people to access your data. Okta Inc. (NASDAQ: OKT) is on the third spot, having 51 hedge funds and total value of hedge fund holdings of $187 billion. The company operates in identity authentication services. They build a way to verify and enforce who accesses what at any given time, from your run-of-the-mill passwords to biometrics. If you want to gain more information about the companies on the list please jump to the best cybersecurity stocks to buy now.