Dec 01, 2021 (StockMarket.com via COMTEX) -- Do You Have These Top Cybersecurity Stocks On Your Watchlist?
Cybersecurity stocks have been a hot sector to invest in the stock market over the past few years. As organizations worldwide shift to the new normal of maintaining business continuity during the pandemic, more of their data is also stored online. This also means that they are becoming more vulnerable to cyberattacks. Hence, companies and governments worldwide are showing interest more than ever in building cyber resilience after a series of high-profile attacks. Subsequently, this has translated into higher demand for next-generation cybersecurity products.
Last month, Mimecast ( NASDAQ: MIME) announced the publication of its new report, "State of Ransomware Readiness: Facing the Reality Gap". It appears that there has been a dramatic rise in ransomware attacks over the past year. And, large enterprises are bearing the brunt, experiencing an average of 10,000 attacks over the past two years. However, most executives are confident in their company's preparedness for ransomware attacks today. Well, you could say that this is thanks to the services that cybersecurity companies provide today. With that in mind, here is a list of top cybersecurity stocks to watch in the stock market today.
Best Cybersecurity Stocks To Watch In December 2021
Okta Inc ( NASDAQ: OKTA )
Zscaler Inc ( NASDAQ: ZS )
Crowdstrike Holdings Inc ( NASDAQ: CRWD )
Rapid7 Inc ( NASDAQ: RPD )
First, we will be looking at the identity and access management company, Okta. Its Okta Identity Cloud platform provides identity management solutions that allow customers to secure their users and connect them to technology and applications. Besides that, its platform is also used by information technology (IT) organizations to secure their enterprise.
Not too long ago, the company's Auth0 Identity Platform announced a new partnership with TEC360. Now, TEC360 is the company's first partner in Mexico. Together, they will be helping enterprises across the region to meet evolving identity management and security goals. After all, as the number of online identities continues to rise, so do the number of online threats. Hence, a modern identity platform would offer the right balance of privacy, and security to protect and retain customers.
All eyes are back on the company as it is scheduled to release its third-quarter financial updates after the stock market closes today. Well, during its previous quarter, it reported a revenue of $316 million, an increase of 57% year-over-year. Also, despite reporting a loss of 11 cents per share, this exceeds most analysts' expectations of a loss of 35 cents per share. All these would signal strength by the company as it continues to grow and recover from the effects of the pandemic. With such strong financials, would you be buying OKTA stock?
Fresh off a strong first-quarter earnings report, Zscaler makes the list. For the uninitiated, the company focuses on providing a cloud security platform that is designed on a zero-trust architecture. Hence, its architecture allows users and devices to safely access authorized applications and services in the cloud using the Internet. Impressively, ZS stock has more than doubled its value over the past year.
That being said, there are no signs of the company slowing down from its first-quarter financial update that was announced yesterday. ZS stock is climbing in premarket trading after exceeding expectations on its earnings, revenue, and billings target. Its revenue grew to $230.5 million, representing an increase of 62% year-over-year. Meanwhile, calculated billings were $247.7 million, crushing the estimate of $204 million and a 71% growth compared to the prior year's quarter.
All in all, Zscaler appears to be firing on all cylinders and investors are starting to take notice. With cybersecurity solutions continuing to see increasing demand, the company is in a prime position to benefit from these trends. Considering all this, would you add ZS stock to your watchlist?