Cyberattacks on corporate and government entities have been growing at an alarming rate over the past few years. Furthermore, with digital transformation accelerating, the need and demand for cybersecurity will grow in tandem. As a result, cybersecurity stocks could be worth considering in the stock market. Along with the broader markets, the cybersecurity sector has been hit hard, with major players falling off their 2021 highs. As such, this dip may be looking attractive to investors that are bullish on the sector.
Fortinet (NASDAQ: FTNT), a global leader in cybersecurity solutions, recently released its global 2022 State of Operational Technology and Cybersecurity Report. Based on a survey of more than 500 global Operational Technology (OT) professionals, 93% of OT organizations experienced an intrusion in the past 12 months. Elsewhere, Cloudflare (NYSE: NET) announced late last month several new capabilities for Cloudflare One, its Zero Trust SASE platform. The new features include sophisticated email security protection, data loss prevention tools, cloud access security broker, and private network discovery. Through this, the company is now the only cloud-native Zero Trust solution with a global network scale. With that being said, here is a list of top cybersecurity stocks to watch in the stock market today.
Cybersecurity Stocks To Watch Today
Qualys Inc. (NASDAQ: QLYS)
Zscaler Inc. (NASDAQ: ZS)
SentinelOne Inc. (NYSE: S)
Okta Inc. (NASDAQ: OKTA)
Starting us off today is Qualys, a company that provides a cloud-based platform for cybersecurity. It delivers information technology (IT), security, and compliance solutions that enable organizations to identify security risks to their IT infrastructure. Hence, protecting their systems and applications from cyber threats. Now, the company has more than 10,000 subscription customers worldwide in more than 130 countries. Thus, it is understandable why Qualys is often in the discussion of being the cybersecurity provider of the future. On Tuesday, The Multipoint Group, a leading distributor of cybersecurity solutions in Europe, announced that it has expanded its partnership with Qualys.
Notably, the two will be working on long-term strategic collaborations and geographic expansions. Prior to this, Multipoint and Qualys have already had a solid partnership. Coupling that with Multipoint’s significant growth in operations over the past year, expanding the partnership between the two companies is a natural next step. Both companies see it as essential to grow and expand their footprint further into newer regions. Evidently, with the support of its offices and channel network, Multipoint will support the expansion of Qualys’ market presence into countries such as Greece, Cyprus, Romania, and Bulgaria.
Next to that, we have Zscaler, a cloud-native technology platform that helps accelerate digital transformation. In short, its platform is designed on a zero-trust architecture that allows users and devices to safely access authorized applications and services in the cloud. Some of its notable cloud services include Zscaler Internet Access, Zscaler Private Access, and Zscaler Digital Experience. As such, its products and services are seeing increasing demand over the years. At its Zenith 2022 conference in June, Zscaler released several new capabilities for its security platform.
Specifically, the company announced AI and ML capabilities for the Zscaler Zero Trust Exchange. With these upgrades, organizations will be able to shift to SSE, which secures access to the web, cloud services, and private apps. Besides that, Zscaler also announced an expansion of its relationship with Amazon Web Services (AWS). Together, the two will offer more capabilities to organizations that wish to consolidate and simplify their cloud security operations. According to Zscaler, it chose AWS as a cloud provider for the solution due to its scope of services, scale, and prevalence with Zscaler’s customer base.
Following that, we will be looking at the cybersecurity company SentinelOne. In detail, the company has developed an artificial intelligence (AI) extended detection and response (XDR) platform to enable autonomous cybersecurity defense. Through its Singularity Platform, it is able to defend against various types of cyberattacks. In detail, the platform ingests, correlates, and queries petabytes of structured and unstructured data from a myriad of external and internal sources in real-time.
On June 28, SentinelOne announced a new integration with Torq, a no-code security automation platform. Together, SentinelOne and Torq allow security teams to accelerate response time, reduce alert fatigue, and improve overall security posture. “SentinelOne’s powerful intelligence and protection helps security teams protect their employees and customers – no matter how complex the environment,” said Eldad Livni, Chief Innovation Officer at Torq. Impressively, Torq workflows can listen for SentinelOne alerts, and ingest these to trigger action in any security or operations tool. Ultimately, this results in a solution that is deployed out-of-the-box in minutes with no coding, installation, or ‘connectors’ needed.
Another area of modern-day cybersecurity to consider now would be personal identity and access management. When it comes to this, Okta is a go-to for many among its industry peers. For the most part, Okta provides cloud software via a Software-as-a-Service (SaaS) model. Through its offerings, the company helps clients manage and secure user authentication capabilities in their applications. Additionally, Okta also enables developers to build identity controls across company websites, proprietary applications, and devices.
Earlier last month, Okta posted its financial results for its first quarter ended April 30, 2022. Diving in, Okta saw its total revenue grow by 65% year-over-year to $415 million. Making up a big bulk of its revenue is its Subscriptions, which pulled in $398 million, up by 66% compared to last year. In the same earnings report, the company provided its financial outlook for the second quarter. Particularly, Okta expects total revenue to come in at $428 million to $430 million, representing a growth rate of 36% year-over-year. And for the full year, it expects a total revenue of $1.805 billion to $1.815 billion.
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Article initially appeared on nasdaq.com
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