The company provides network security products and services for businesses, governments, telecom, and other sectors. With revenue up roughly 200% since our last update, OneTrust has backed up its early promise as few startups can. With annual revenue estimated at $669 million, the $933 million that venture investors have sunk into OneTrust is beginning to look like a bargain, and its $5.3 billion “unicorn” valuation reasonable.
Over the years, Fortinet has invested heavily in its AI solutions, including using sophisticated algorithms to process more than 100 billion cyber events every day. This has allowed for better real-time prevention of breaches, as well as improved remediation. This all-in-one strategy is important because there is a trend for customers to reduce the number of applications.
Furthermore, software companies represent 57% of the fund’s top holdings, which tend to be more valuable than traditional hardware companies. Moreover, with an expense ratio of just 0.50%, investors gain maximum value from this powerful ETF. The first cybersecurity company on this list is global technology firm Broadcom, which has built a large portfolio of embedded and mainframe security solutions, as well as payment authentication software. The company broadened its offerings in November 2019 with the acquisition of cybersecurity firm Symantec and now offers a suite of integrated Symantec cybersecurity software.
For example, ransomware attacks have been accelerating at an alarming rate and have become a driving force for companies to ramp up spending on cybersecurity. Cybersecurity Ventures estimates that there were $20 billion of ransomware damages in 2021 and those damages could grow to $265 billion in 2031. It is estimated that a ransomware attack occurs every 11 seconds, and that frequency is expected to increase to an attack every two seconds by 2031. Considering how well these stocks had held up prior to the recent selloff into bear-market territory, we think many portfolio managers had switched to selling what they could as opposed to what they wanted to. In our view, this has provided investors with an opportunity to invest in a high-growth industry whose clients will be unwilling to cut back on their services even in periods of economic uncertainty and/or high inflation. Nevertheless, not all cybersecurity companies have seen growth recently.
Due to the necessity of cloud computing and remote operations, organizations now confront new security challenges. Check Point Software has a Value Grade of D, based on its Value Score of 31, which is considered to be expensive. Check Point Software’s Value Score ranking is based on several traditional valuation metrics. The company has a rank of 84 for the price-to-sales (P/S) ratio, 10 for shareholder yield and 52 for the price-to-free-cash-flow (P/FCF) ratio. The company has a price-to-sales ratio of 6.77, a price-to-free-cash-flow ratio of 17.5 and an 8.1% shareholder yield. A lower price-to-sales ratio is considered better, and Check Point Software’s price-to-sales ratio is above the sector median of 1.96.
The ETF is composed of 35 stocks in the cybersecurity industry and has an annual expense ratio of 0.6% (or $6 in annual fees for every $1,000 invested), making it an affordable option. BlackBerry stock rose by around 56.5% in 2017, and in its second-quarter results, released on September 28, the company posted record software and services revenues of $196 million. It is currently trading at around $13.10, making the former hardware giant a great bet moving forward as it continues its aggressive foray into the software market. Although it was founded in 1993, in 2009, following heightened security threats and potential hacking attacks, the company transitioned from an appliance-led model to one that focuses on Software Blade architecture. Its blade architecture is increasingly popular with customers, as it allows them to choose from an archive of software blades and customized solutions to meet their individual needs. S&P Capital IQ believes that this makes it one of the cheapest stocks in its cybersecurity software peer group.
Zero-trust architecture requires users to verify their identity before accessing data and applications. The company also develops edge computing technology, which moves data from centralized data centers to end users. Cybersecurity stocks had a bad week after the effects of the Silicon Valley Bank failure showed up in earnings reports — and after a strength that many companies relied on last earnings season shifted to a liability.
FTNT, CRWD, or PANW: Which Cybersecurity Stock is the Best Pick?.
Posted: Sun, 04 Jun 2023 07:00:00 GMT [ source ]
For more detailed holdings information for any ETF, click on the link in the right column. The following table includes expense data and other descriptive information for all Cyber Security ETFs listed on U.S. exchanges that are currently tracked by ETF Database. In addition to expense ratio and issuer information, this table displays https://trading-market.org/ platforms that offer commission-free trading for certain ETFs. NortonLifeLock Inc.’s stock is expected to fall by the second half of January, if not sooner, because the company should report its third-quarter earnings results in the first week of February. VpnMentor contains reviews that are written by our community reviewers.
During the fourth quarter, revenues jumped by 33% year-over-year to $510 million and cash flows came to $76 million. “What Fortinet does well is that it offers multiple security functions on one platform at an attractive price as a bundle,” said Hendi Susanto, portfolio manager at Gabelli Funds. The Qualys platform manages over 2 trillion security events per year and handles more than 6 billion IP scans and audits. There are also more than 20 apps, such as for integrated IT, security protections and compliance.
To find out, eSecurity Planet routinely conducts an analysis of the world’s largest and hottest cybersecurity vendors and ranks the top ones. The following didn’t quite make our cut for the top cybersecurity companies, but that doesn’t mean they don’t https://bigbostrade.com/ have great products and services. Some continue to gain traction, while in other cases mergers and private equity takeovers have limited our visibility, but all these vendors have made our top product lists and will meet the needs of many users.
Norton’s acquisition allows the two software companies to increase their user base significantly, collectively focusing on stronger identity protection and privacy. The company continues to have a strong balance sheet and recent earnings in line https://day-trading.info/ with projections. EPS of $0.44 were in line, and revenue of $702M beat by 9.86% YoY, resulting in two FY1 Up Revisions in the last 90 days. The cheat sheet on the top 10 cyber security stocks is crafted so that you don’t need to be an expert.