4 Best Cybersecurity Stocks to Watch in 2021
After the recent ransomware attacks on the US’s largest oil pipeline system, Colonial Pipeline, and the world’s largest meat producer, JBS, the interest in cybersecurity companies has risen dramatically.
If you’re interested in discovering some of the best cybersecurity stocks and ETFs (exchange traded funds) to invest and how to do so with competitive fees, then you are definitely in the right place! Let’s get to it.
Table of Contents
4 Best Cybersecurity Stocks to Watch Now
There is a large number of cybersecurity companies that provide critical support and services to businesses that operate online and through electronic communication networks.
Here is a quick list of some of the best cybersecurity stocks to watch this year. Be sure to keep on reading to learn how to invest in them with ultra-low fees and how to access premium stock research tools completely free.
- Zscaler (ZSUS)
- Fortinet (FTNT)
- Palo Alto Networks (PANW)
- CrowdStrike (CRWD)
All of these cybersecurity companies specialise in a different area of security. Fundamentally, they all focus on safeguarding data and systems from unauthorised users.
As more and more companies move online there is an increasing threat from cyber criminals. This is one reason why investors are keen to find and invest in the best cybersecurity stocks available.
Some of the top cybersecurity stocks are listed above and should serve as a great starting point for further research and analysis. In the next few sections, you will learn some of the most important details of these companies to help you build a cybersecurity stock portfolio.
How to Invest in Cybersecurity Stocks
If you’re ready to start investing or are looking to improve your current setup, did you know that you can invest in stocks and ETFs with some of the industry’s lowest commissions through the Admirals Invest.MT5 account?
With this account, you can:
- Invest in stocks and ETFs from 15 stock exchanges around the world
- Start investing with ultra-low commissions from $0.02 per share on US stocks
- Enjoy a low minimum transaction fee of just $1 and ZERO monthly maintenance fees
- Access free real-time stock market quotes and exclusive market research
- Collect dividend payouts to build a passive income stream
- And much, much more!
You only need €1 to open an account! See all of the features and benefits first hand by opening a free account today!
4 Best Cybersecurity Stocks to Buy: Research & Analysis
If you’re thinking about what to invest now and when to invest, then cybersecurity stocks should be towards the top of that list.
Below we go through some of the best cybersecurity stocks to consider for this year. As it is an in-demand stock sector, individual company share prices may exhibit more volatility than other blue-chip stocks.
Be sure to do some thorough fundamental research or technical analysis and always remember the risks to investing in anything!
You can start with a free demo trading account from Admirals to invest in a virtual environment until you’re ready to go live. It’s a great way to see the benefits of all the exclusive features and services you will receive.
1. Zscaler (ZSUS)
Zscaler was founded in 2007 and became a publicly traded cybersecurity company in 2018. It is now listed on the Nasdaq stock exchange. This year, the cloud-based information security company had a market cap of more than $25 billion with more than 100 data centres around the world, serving customers in 185 countries.
The company’s services are rising in popularity too. More than 450 companies of the Forbes 2,000 list use Zscaler and they are an authorized partner for Microsoft Office 365. This statistic is only likely to grow as the world faces more and more threats from cybercrime.
Source: Admirals MetaTrader 5, ZSUS, Weekly - Data range: from 11 Mar 2018 to 10 Jun 2021, performed on 10 Jun 2021 at 1:30 pm GMT. Please note: Past performance is not a reliable indicator of future results. Last five-year data not available.
In the last four-quarters, Zscaler achieved revenue of more than $125 million. In the last quarter, revenue was up 60% year on year at $176.4 million. However, the company’s net loss has been widening but this due to the fact they are focused on growth rather than profitability.
This means they are continually pouring money into marketing, growth and acquisitions – a clear long, term strategy. This also reflected in the company’s share price shown above which is currently below its all-time high.
2. Fortinet (FTNT)
Fortinet is one of the oldest cybersecurity companies and has been around since 2000, achieving a market cap of more than $35 billion. The company develops and sells a whole range of different cybersecurity products and services. This includes firewalls, anti-virus protection, endpoint security components and much more.
Investors have enjoyed the company’s recent earnings announcement as they record an increase in revenue and increased forward guidance. The company has also been an aggressive expansion plan with more than 65 deals last year, including a $75 million investment into Linksys.
Source: Admirals MetaTrader 5, FTNT, Monthly - Data range: from 1 Sep 2013 to 11 Jun 2021, performed on 11 Jun 2021 at 1:30 pm GMT. Please note: Past performance is not a reliable indicator of future results. Last five-year data not available.
The improving fundamentals of the company and aggressive expansion plan have helped Fortinet to become a top cybersecurity stock for investors. The above chart shows the long-term trend of Fortinet's share price.
It’s clear to see the aggressive uptrend since 2016 with price accelerating during the pandemic of 2020. With prices this elevated, some investors may tread with caution. These type of strong-trending market conditions may be more ideal for traders looking to trade momentum.
Source: Admirals MetaTrader 5, FTNT, Daily - Data range: from 28 Jan 2021 to 12 Jun 2021, performed on 12 Jun 2021 at 1:30 pm GMT. Please note: Past performance is not a reliable indicator of future results. Last five-year data not available.
The chart above is of Fortinet’s daily share price – a more common timeframe among active traders. From a technical analysis perspective, this timeframe provides more information for entry and exit points.
For example, the price has clear higher high and higher low cycle formations – a key determiner of trends for technical analysts – as well as several bounces of the 20 period (blue), 50 period (red) and 100 period (green) exponential moving averages.
Did you know that with the Premium Analytics tool you can find actionable trading opportunities on thousands of markets including stocks, indices, commodities and currencies?
This exclusive tool is FREE for demo and live account holders and you can access it through the Trader’s Room.
Source: Premium Analytics, 11 June 2021
The above screenshot of the Premium Analytics Technical Insight Lookup indicator tool shows all the different technical analysis events on Fortinet’s share price. At the time of writing, this includes ten technical events covering short-term (2 – 6 weeks), intermediate term (6 – 9 weeks) and long term (more than 9 months).
This is a great tool to help you find actionable trading ideas on the markets you are looking to invest in. It also helps you to learn more about technical analysis and potential entry and exit levels on a stock or other asset class.
Get FREE access today by opening a free account:
3. Palo Alto Networks (PANW)
Palo Alto Networks is a multinational cybersecurity company that was founded in 2005. Last year revenues topped $3 billion as the company services 70,000 businesses in more than 150 countries. The company was listed eighth in the Forbes Digital 100 list and they count 85 companies of the Fortune 100 list as a client.
The core focus of products offered by the company revolve around network security, advanced firewalls, cloud security, endpoint protection among other niches. Palo Alto Networks also operates Unit 42 which is an advanced threat intelligence team focused on finding new cyber threats and working with the FBI.
Source: Admirals MetaTrader 5, PANW, Monthly - Data range: from 1 Jul 2011 to 11 Jun 2021, performed on 11 Jun 2021 at 1:30 pm GMT. Please note: Past performance is not a reliable indicator of future results.
Palo Alto Networks has a very impressive track record of providing consistent sales, as well as shareholder return. As the longest standing player in the field, it’s a popular company for investors too. This is especially true due to the incredible dividends and buybacks given to investors over the past few years.
In the long-term chart of the company’s share price above it’s clear to see the uptrend that has since accelerated from the lows of the pandemic in 2020. With an impressive list of clients and a custom-built platform around its own product, it certainly is a stock to watch for the long term.
4. CrowdStrike (CRWD)
Crowdstrike was founded in 2011 and focuses on proactive and incident response services. Its products include cloud systems for threat intelligence, endpoint security and more. The company, with a former FBI official as one of its founders, has been active in the cyber attacks of Sony Pictures in 2014 and the Democratic National Committee (DNC) in 2016.
The company has posted an impressive performance in recent quarters which analysts say is supportive of its high valuation. Interestingly, it is a company that still has huge growth potential as it can tap into international markets.
Source: Admirals MetaTrader 5, CRWD, Weekly - Data range: from 9 Jun 2019 to 11 Jun 2021, performed on 11 Jun 2021 at 1:30 pm GMT. Please note: Past performance is not a reliable indicator of future results. Last five-year data not available.
Since the company’s initial public offering (IPO) launch in 2019, it has already become a market leader in the cybersecurity space. Crowdstrike is very well positioned to meet the issues faced by businesses today. Dealing with threats when they come is no longer viable. Companies must build the right infrastructure to mitigate threats in the first place.
This is where Crowdstrike shines as a cloud-based platform. Investors seem to agree as well. The stock price is trading much higher than when it first launched in 2019, as shown in the chart above.
As the current price is still trading below its all-time high price level there is potential for the stock to move back towards this level, making it a cybersecurity stock to watch for this year.
Did you know that ransomware demands amounted to nearly $20 billion last year? It’s significantly higher than the $11 billion the previous year and is set to continue. This has put a lot of pressure on companies to not just deal with cybersecurity threats but to build the right infrastructure and systems before the threat.
This is why the cybersecurity sector is now becoming very competitive. The growth potential for cybersecurity stocks is now very interesting. This is why investors are keen to focus on this sector and the companies leading the race forward. Some of the best cybersecurity stocks are listed in this article.
With Admirals, you can invest in cybersecurity stocks and thousands of other stocks from around the world with ultra low fees and a range of exclusive features such as the Premium Analytics Technical Insight Lookup indicator.
Furthermore, you can test all of the services and products completely FREE by opening a demo trading account!
Open a FREE account today and see for yourself!
About Admirals (formerly Admiral Markets)
Admirals is a multi-award winning, globally regulated Forex and CFD broker, offering trading on over 8,000 financial instruments via the world's most popular trading platforms: MetaTrader 4 and MetaTrader 5. Start trading today!
INFORMATION ABOUT ANALYTICAL MATERIALS:
The given data provides additional information regarding all analysis, estimates, prognosis, forecasts, market reviews, weekly outlooks or other similar assessments or information (hereinafter “Analysis”) published on the website of Admiral Markets. Before making any investment decisions please pay close attention to the following:
- This is a marketing communication. The content is published for informative purposes only and is in no way to be construed as investment advice or recommendation. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and that it is not subject to any prohibition on dealing ahead of the dissemination of investment research.
- Any investment decision is made by each client alone whereas Admiral Markets Cyprus Ltd (Admiral Markets) shall not be responsible for any loss or damage arising from any such decision, whether or not based on the content.
- With a view to protecting the interests of our clients and the objectivity of the Analysis, Admiral Markets has established relevant internal procedures for the prevention and management of conflicts of interest.
- The Analysis is prepared by an independent analyst (Jitan Solanki, Market Analyst, hereinafter “Author”) based on the personal estimations.
- Whilst every reasonable effort is taken to ensure that all sources of the content are reliable and that all information is presented, as much as possible, in an understandable, timely, precise and complete manner, Admiral Markets does not guarantee the accuracy or completeness of any information contained within the Analysis.
- Any kind of past or modelled performance of financial instruments indicated within the content should not be construed as an express or implied promise, guarantee or implication by Admiral Markets for any future performance. The value of the financial instrument may both increase and decrease and the preservation of the asset value is not guaranteed.
- Leveraged products (including contracts for difference) are speculative in nature and may result in losses or profit. Before you start trading, please ensure that you fully understand the risks involved.