7 of the best cybersecurity stocks for 2022 to buy now


Tech investors know what a roller coaster ride this industry can be. One area that illustrated the ups and downs in 2021 was cybersecurity stocks. Many of these stocks outperformed the overall market for much of the year. But many just as quickly gave up most, or all, of those gains.

Nevertheless, this sector will continue to outperform the market in 2022. The reason is simple. The need for cybersecurity has never been greater. And with so much work migrating to the cloud, information technology (IT) professionals face an increasingly sophisticated range of threats. These threats will only get worse as workers return to the office.

According to the firm Cybersecurity Ventures, the total damage inflicted by cybercrime in 2021 will amount to 6 trillion dollars. A more concerning statistic is that the same company expects that number to increase by 15% per year, which means that by 2025 the damage caused by cybercrime will total $ 10 trillion.

That’s why, when considering adding actions before the new year or soon after, cybersecurity actions are worth considering. I invite you to keep reading on seven cybersecurity actions that are on track for a stellar 2022.

  • CrowdStrike Holdings (NASDAQ:CRWD)
  • Zscaler (NASDAQ:ZS)
  • Microsoft (NASDAQ:MSFT)
  • Palo Alto Networks (NASDAQ:PANW)
  • Okta (NASDAQ:OKTA)
  • Fortinet (NASDAQ:FTNT)
  • Tenable holdings (NASDAQ:TENB)

Cyber ​​Security Actions: CrowdStrike Holdings (CRWD)

CrowdStrike is a good example of how cybersecurity stocks gave investors a big price swing in 2021. There is a 76.9% difference between the 52 week high and the 52 week low of the year. ‘action. What may confuse investors is that at the end of the year, CRWD stock is trading closer to the 52 week low, but just a few weeks ago it was at its highest. 52 weeks.

However, it sounds like an example of a good stock getting lumped together with the massive sell-off in tech stocks amid fears of a Fed interest rate hike. I believe so because the company’s December 1 earnings report appears to be bottoming out CRWD shares.

CrowdStrike offers a wide range of solutions focused on real-time endpoint security, threat intelligence and workload protection in the cloud. And it’s a Software as a Service (SaaS) company that grows profits and revenues both sequentially and year over year.

Analysts give the stock a consensus price target of $ 286.85 suggesting a 35% rise. The path to that number may not be linear, but getting the CRWD strike at its current price looks like a steal.

Zscaler Inc. (ZS)

Zscaler was not immune to the recent selloff in tech stocks. However, as we approach the end of the year, ZS stock is around 12% of its 52 week high set in mid-November. The stock posted a double beat in its last earnings report on November 30.

Although Zscaler is a niche player, it has a simple yet vital cybersecurity solution that is critical as workers embrace a hybrid work model. The company offers a solution that allows users to securely browse the Internet and access applications, regardless of their device, location or network. This is one of the main reasons Zscaler has a customer base that comprises over 20% of the Fortune 500.

ZS stock has risen 57% in the past 12 months and 100% since closing at a low of $ 160.92 in mid-May. Analysts suggest the stock is up 13%. However, recent upgrades may not factor into the company’s stock price.

Cybersecurity actions: Microsoft (MSFT)

Microsoft is by no means an outright cybersecurity act. However, with $ 10 billion in revenue from this part of its business, the MSFT action is not to be overlooked. One of the reasons for this is the company’s ability to integrate its security tools into its Office 365 software which is already cloud-based.

And if recent purchases are any indication, Microsoft does not hesitate to generate growth through acquisition. In July 2021, Microsoft acquired RiskIQ for approximately $ 500 million. This was in addition to its purchase of CloudKnow Security in July.

Microsoft shares rose 50% in 2021, and much of that growth is due to the company’s Teams collaboration software. However, the company continues to expand into other high growth areas such as the metaverse. Nonetheless, MSFT stock is a solid buy for investors who have a lower tolerance for risk but still want exposure to cybersecurity stocks.

Palo Alto Networks (PANW)

Palo Alto offers a patented security platform called App-ID which, as the name suggests, identifies network traffic by application, user, and content. The advantage is that it gives customers deep visibility into all traffic and applications for better monitoring of potential risks and threats. Enterprise platforms are also stand-alone solutions that allow consumers to achieve end-to-end security without the need to call on another company.

The question Palo Alto executives might ask investors is what took you so long to see this? PANW shares are up 58% over the year. But if you were the stock owner in mid-August, you might lose your patience. However, your patience has paid off. After the publication of its results at the end of August, the title was in tears.

The earnings report may have confirmed to investors that the company is starting to generate recurring revenue after introducing two new platforms earlier in the year.

Cybersecurity Actions: Okta (OKTA)

Okta is another cybersecurity stocks that I love because they have carved out a distinct niche for themselves. In this case, the company is focusing on identity authentication with a “zero trust” approach. Simply put, Okta offers solutions ranging from passwords to biometrics to help customers easily identify, verify and control who is accessing a network at any given time.

OKTA stock may seem like a curious addition to the list as it is down 10% for the year and is trading in the lower half of its 52 week range. However, the stock rallied after a strong earnings report in early December. Analysts still price the stock around 25% higher. The company continues to see its subscription revenue increase and it also increases its free cash flow.

Fortinet (FTNT)

When it comes to cybersecurity stocks, Fortinet should definitely be on the list. Again, Fortinet makes my list because it offers a consumer benefit that’s easy to understand in our hyper-connected world.

Simply put, we’re all online… a lot. And Fortinet, among others, offers VPN services. Josh Enomoto reminded investors that VPNs aren’t just about keeping our internet behavior private, they’re becoming good practice when it comes to protecting our own cybersecurity.

FTNT stock rose 135% for the year and it’s fair to say that if you’re not currently a shareholder, you’ve probably missed out on the biggest gains. Nonetheless, it is a quality stock that rose 1.138% in its first 10 years of listing. With demand for the company’s products and services remaining high, Fortinet is a solid buy for 2022 and beyond.

Cyber ​​Security Actions: Tenable Holdings (TENB)

Tenable Holdings is last on our list of cybersecurity stocks. As the name suggests, Tenable is a holding company that provides cybersecurity solutions to customers through its subsidiaries. The mid-cap company has corporate clients in industries such as automotive, energy, finance, healthcare, oil and gas, and government.

It was the latter that caught my attention. The Colonial Pipeline’s high-profile cyberattack prompted the Biden administration to come up with new cybersecurity initiatives. Anyone can guess if these initiatives will find their way through a controversial Congress, but if they do, Tenable Holdings could be a big player.

TENB stock performed very well in 2021. However, since being named one of Wedbush Securities’ top two cybersecurity picks for 2022 on December 20, 2021, the stock has climbed 4%.

As of the publication date, Chris Markoch does not have (directly or indirectly) any position in any of the stocks mentioned in this article. The opinions expressed in this article are those of the author, subject to InvestorPlace.com Publication guidelines.

Chris Markoch is a freelance financial writer who has covered the market for seven years. He has been writing for InvestorPlace since 2019.


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