In this article we discuss the 5 best cybersecurity stocks to buy now. If you want to read our detailed analysis of these stocks, go directly to the 15 Best Cybersecurity Stocks to Buy Now.
5. Okta, Inc (NASDAQ: OKTA)
Number of Hedge Fund Holders: 48
Okta, Inc (NASDAQ: OKTA) is a cybersecurity company that provides services in managing and securing user authentication into applications. It also allows the developers to build identity controls into applications, websites, and devices.
In Q1 FY22, Okta, Inc (NASDAQ: OKTA) reported a net income of $12.9 million, up from $7.44 million during the same period last year. The EPS for the quarter was recorded at -$0.10, beating the market consensus by $0.10. The revenue presented a 37% year-over-year growth at $251 million. Moreover, the subscription revenue also grew by 38% from the past year at $240 million. Free cash flow accounted for 21% of the gross revenue at $53 million, compared with $30 million, a year ago. For the second quarter of FY22, the company expects to generate revenue in the range of $295 million to $297 million. The OKTA stock has soared by 18.4% in the past year. Recently, Goldman Sachs initiated its coverage on the stock with a ‘Buy’ rating and a $312 price target. Mizuho also raised its price target on OKTA to $275.
As of Q1 2021, 48 hedge funds tracked by Insider Monkey have stakes in Okta, Inc (NASDAQ: OKTA), worth $1.6 billion. With 1.7 million shares, worth $393.9 million, SCGE Management is the leading shareholder of the company.
4. Dynatrace, Inc. (NYSE: DT)
Number of Hedge Fund Holders: 52
Dynatrace, Inc. (NYSE: DT) is an Australian technology company providing software intelligence with the help of artificial intelligence. The company’s operations include monitoring and optimizing application performance and development. It has thousands of top global brands as customers.
In Q4 FY21, Dynatrace, Inc. (NYSE: DT) reported a net income of $43.3 million, up from $28.1 million during the same period last year. The EPS beat the market estimate marginally by $0.01 at $0.15. The revenue grew by 32% year-over-year at $196.5 million, with subscription revenue accounting for $182.8 million. For Q1 FY22, the company issued strong guidance, expecting revenue in the range of $202 to $204 million and EPS between $0.14 and $0.15. Free cash flow accounted for 34% of the total revenue at $237 million, compared with $149.5 million in 2020. Recently, BMO raised its price target on the DT stock from $56 to $70, with an ‘Outperform’ rating, and appreciated the stock’s year-to-date performance and strong quarterly results, in-line with the consensus. The stock has gained 41% year to date.
At the end of Q1 2021, 52 hedge funds tracked by Insider Monkey have positions in Dynatrace, Inc. (NYSE: DT), worth $1.63 billion. This is compared with 53 funds in the previous quarter. With 6.4 million shares, worth $312.9 million, HMI Capital is the company’s largest shareholder.
3. Cisco Systems, Inc. (NASDAQ: CSCO)
Number of Hedge Fund Holders: 59
Cisco Systems, Inc. (NASDAQ: CSCO) is a California-based technology company providing software-defined networking, cloud, and security solutions to its customers. Recently, the company has acquired Socio Labs, which will be integrated into the company’s Webex portfolio. CSCO ranks third on our list of the best cybersecurity stocks to buy now.
In Q3 FY21, Cisco Systems, Inc. (NASDAQ: CSCO) reported a net income of $3.5 billion, up 4% from the same period last year. In fiscal Q4, the company expects 6% to 8% year-over-year growth in revenue. Since the beginning of the year, the CSCO stock has delivered a return of 22%. In May, Oppenheimer raised its price target on CSCO from $50 to $55 with an ‘Outperform’ rating.
As of Q1 2021, 59 hedge funds tracked by Insider Monkey have positions in Cisco Systems, Inc. (NASDAQ: CSCO), worth $5.1 billion. Generation Investment Management is the largest shareholder of the company, with 23.2 million shares, worth $1.2 billion.
ClearBridge Investments recently its first-quarter investor letter and mentioned Cisco Systems, Inc. (NASDAQ: CSCO) and other stocks in it. Here is what the firm has to say about CSCO:
“Also in IT, we added Cisco Systems, which provides IT and networking services in the form of network security, software development and cloud computing. Cisco continues to derive over 50% of its sales from on-premise deployments of its products of enterprise and small and midsize customers, while recurring revenues from software are becoming a larger part of the mix. Return-to-office enterprise spending should offer upside to its core campus business. Cisco was an early technology leader in sustainability over two decades ago, through its Internet-connecting capabilities which supported live concerts in partnership with the United Nations Development Program to raise awareness and funds to fight poverty. Cisco has very strong environmental standards (including driving lower energy consumption in IT departments through new product innovations and a longstanding goal to reduce emissions and reliance on non-renewable energy sources). Its data privacy and supply chain management policies are best in class.”
2. Palo Alto Networks, Inc. (NYSE: PANW)
Number of Hedge Fund Holders: 64
Palo Alto Networks, Inc. (NYSE: PANW) is an American cybersecurity company, headquartered in California, U.S. The company provides services in network and cloud security, and endpoint protection. It has more than 82,000 enterprise customers in over 150 companies. PANW ranks second on our list of the best cybersecurity stocks to buy now.
In Q3 FY21, Palo Alto Networks, Inc. (NYSE: PANW) reported solid earnings and raised its fiscal year guidance. The company reported a net income of $139 million, up from $114.6 million during the same period last year. The EPS of $1.38 beat the estimates by $0.10. The revenue presented a 24% year-over-year growth at $1.1 billion.
The subscription and support segment accounted for $785 million of the gross revenue. For FY21, the company expects revenue in the range of $4.20 billion to $4.21 billion and a free cash flow margin of 30%. The PANW stock has soared by 58.2% in the past year and 10.4% year to date. Due to the strong quarter, many investment banks raised their price targets on the PANW stock recently, such as Deutsche Bank, Piper Sandler, and Stifel. Shaul Eyal from Cowen also initiated coverage of PANW with an ‘Outperform’ rating and a $425 price target.
The number of hedge funds having stakes in Palo Alto Networks, Inc. (NYSE: PANW) increased in the first quarter to 64, from 61 in the previous quarter. Viking Global is the largest shareholder of the company with shares worth $807.8 million.
1. CrowdStrike Holdings, Inc. (NASDAQ: CRWD)
Number of Hedge Fund Holders: 77
CrowdStrike Holdings, Inc. (NASDAQ: CRWD) is a California-based cybersecurity company that provides a platform to detect and prevent breaches and threats. The company’s cloud-native Falcon platform is a security solution that can be used on nearly all devices, including desktops, laptops, servers, etc.
In Q1 FY22, CrowdStrike Holdings, Inc. (NASDAQ: CRWD) reported a net income of $23.3 million, up from $4.5 million during the same period last year. The EPS beat the market consensus by $0.04 at $0.10. The revenue for the quarter was recorded at $302.8 million, compared with $178.1 million in Q1 FY21, presenting 70% year-over-year growth. Free cash flow also increased to $117.3 million from $87 million in the prior-year quarter. For the second quarter, the company presented strong guidance, expecting revenue in the range of $318.3 to $324.4 million.
Recently, Mizuho raised its price target on CRWD to $295 and kept a ‘Buy’ rating on the shares. The strong quarter resulted in many other investment banks upgrading the CRWD stock, such as BTIG, Piper, Sandler, and KGI Securities.
At the end of Q1 2021, 77 hedge funds tracked by Insider Monkey have stakes in CrowdStrike Holdings, Inc. (NASDAQ: CRWD), worth $5.25 billion. Tiger Global Management LLC is the largest shareholder of the company, with 7.5 million shares, worth $1.37 billion.
Carillon Tower Advisers has recently released its first-quarter investor letter and mentioned CrowdStrike Holdings, Inc. (NASDAQ: CRWD) and other stocks in it. Here is what the firm has to say about CRWD:
“CrowdStrike provides cloud-based software used in the security of computers, servers, and mobile phones. The stock pulled back a bit during the quarter as investor sentiment shifted away from stocks with higher valuation multiples. We remain shareholders, as the protection of enterprise assets and cloud workloads from various forms of cyberattacks remains more important than ever for many enterprises, and we believe this will continue to result in a strong demand environment for CrowdStrike’s innovative products and services.”
You can also take a peek at Top 10 Cloud Stocks To Buy and 15 Biggest Cloud Companies.
