Due to the increasing traffic in online platforms, the world witnesses data breaches and cyberattacks each day. The SolarWinds attack and the Colonial Pipeline are just a fraction of what gets to make the headlines. In the United States, cyberattacks are said to be the fastest-growing online crime. A global IT company and learning institution, ISACA conducted research and established that the damages caused by cybercrime today is worth $6 trillion.
However, this is not only attributed to deliberate attempts by hackers. 95% of these breaches occur due to human error, meaning any company can suffer some data breach. Gartner, a research firm, projects that by the end of 2021, the worldwide security and risk management spending will exceed $150 billion. This confirms why most investors are interested in cybersecurity stocks.
The Best Cybersecurity Firms For Investors
Cybersecurity stocks are a red-hot niche for investors who know the stock basics of the tech industry. Investing in this sector can yield some significant returns in the decade ahead. Here are some top cybersecurity stocks with promising long-term potential:
CrowdStrike Holdings (CRWD)
CrowdStrike uses machine learning and specialized databases to provide endpoint security for mobile phones, laptops, PCs, servers, and other devices connected to a network. This cloud-native software company is especially suitable for supporting remote work thanks to the artificial intelligence used to detect security breaches.
The company has recorded successful sales in 2021, and they are currently the largest pure-play security vendor based on market capitalization. In a report released on August 31, CrowdStrike beat its Q2 estimates with strong subscription growth seeing its revenues rise by 70% in over a year to $337.7 million, which beat analyst’s estimates by $14.2 million. From the statistics, NASDAQ: CRWD is one of the market’s fastest-growing cybersecurity stocks. While this stock looks slightly pricier and volatile, its strengths are enough justification for its premium valuation.
Zscaler
Zscaler (NASDAQ: ZS) is another renowned cloud-native vendor and is the biggest cloud-based web security gateway designed to detect customer data traffic for malware. With the increasing number of mobile employees, the demand for Zscaler’s flagship end-user protection products is expected to remain strong in the long term. More so, in the last few years, the company has been working on a disruptive cloud-native platform that is designed to protect remote worker’s computing environments without requiring businesses to implement or configure cumbersome on-premises infrastructure.
This is a great opportunity for investors as since implementing the cloud-native platform is expected to see the stock price rise. Furthermore, Zscaler announced last year that they were looking to leverage its infrastructure to secure cloud applications. More businesses will be interested in a cyber-security app that addresses emerging technologies and utilizes cloud environments such as 5G. Hence, Zscaler should be among the stocks to consider when looking to invest in cybersecurity stocks
SentinelOne
SentinelOne (NYSE:S) is a relatively new company in the industry and is the most recent pure-play cybersecurity company to be listed publicly. SentinelOne operates a cloud-based endpoint security platform and is focused on automatically detecting and resolving cybersecurity threats. Although they have not been in the industry for long, they have been well received, and they were able to double their sales in 2020.
The company employs a highly autonomous solution that offers a more scalable business model than other renowned companies such as CrowdStrike. Moreover, compared to CrowdStrike, SentinelOne has utilized the last-mover advantage and capitalized on CrowdStrike’s weak points. For example, SentinelOne has proved to have better than CrowdStrike in the MITRE ATT&CK evaluations.
Why buy SentinelOne? The company expects to double its revenue again this year. The stock initially entered the market at $46 per share and is currently trading within the $60 range with a $16.9 billion market cap.
Cybersecurity Is a Necessity, Not a Need
For any business operating online, investing in cybersecurity is no longer a need but a necessity which explains why investors are eyeing cybersecurity stocks. The cyber threat impacts massive database platforms like the US federal government and websites you least expect, such as gaming and gambling platforms.
Online casinos, especially, have seen significant revenue growth, which has allowed more companies to venture into the business, increasing the competition. To gain an advantage, instant payout casinos have attracted more South African players thanks to impressive deposit bonuses and free spins. These casinos also allow generous withdrawal limits and low-cost withdrawal fees. Moreover there are varied payment methods such as Visa, Skrill and Bitcoin.
The implementation of SSL encryption security measures is another aspect that has helped casinos to have a stable online business. Since these casinos deal with huge amounts of money, they are lucrative prospects for malicious third parties looking for quick cash. If hackers attack the casino’s website, they can get away with significant amounts or steal user’s data. Luckily, casinos licensed by renowned regulators such as MGA and UKGC must install stringent security measures. You can find the information on a casino’s cybersecurity measures in the T&Cs section.