30 Best and Worst Data Center Stocks

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16. Radware Ltd. (NASDAQ:RDWR)

Upside Potential: 23%

Number of hedge funds: 17

Radware Ltd. (NASDAQ:RDWR) specializes in cybersecurity and application delivery solutions for physical, cloud, and software-defined data centers. The company provides infrastructure, application, and corporate IT protection and availability services to enterprises globally. Its products, such as Cloud WAF, Bot Manager, DDoS protection, and DefensePro, offer comprehensive security and performance optimization for data centers.

Radware Ltd. (NASDAQ:RDWR) reported a robust set of Q3 2024 earnings results on November 2nd, with revenue surging 13% year-over-year (YoY) to $69.5 million. More importantly, the company is experiencing significant operating leverage, as its adjusted EPS more than tripled YoY to $0.23 from $0.07. Management attributed this success to the ongoing strong traction in the DefensePro X product and reported adding a record number of new cloud customers, leading to a 15% YoY increase in cloud annual recurring revenue (ARR). They also emphasized their commitment to accelerating growth by expanding their channels, enhancing their global cloud security network, further diversifying their cloud security suite, and aligning their organization to support these initiatives.

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