In this article, we will be looking at the 5 best security stocks to buy now. If you want to see our detailed analysis of the cybersecurity industry, you can go directly to the 15 Best Security Stocks to Buy Now.
5. Tenable Holdings, Inc. (NASDAQ: TENB)
Number of Hedge Fund Holders: 32
Tenable Holdings, Inc. (NASDAQ: TENB) is a provider of cyber exposure solutions for consumers in the US, Europe, and internationally. The company’s platforms include Tenable.io and Tenable.sc, and it ranks 5th on our list of the best security stocks to buy now.
This June, Tenable Holdings, Inc. (NASDAQ: TENB) claimed to have become the first-ever vulnerability management vendor for the security of Canada’s infrastructure, following its partnership with CyberNB’s Critical Infrastructure Security Operations Center. The stock’s coverage was also initiated in the same month by Needham, with a Buy rating and a $51 price target.
In the first quarter of 2021, Tenable Holdings, Inc. (NASDAQ: TENB) had an EPS of $0.13, beating estimates by $0.07. The company’s revenue was $123.19 million, up 20.01% year over year, and beating estimates by $3.47 million, and it has a gross profit margin of 82.44%. The stock has gained 35.56% in the past year.
As of the end of the first quarter of 2021, 32 hedge funds held stakes in Tenable Holdings, Inc. (NASDAQ: TENB), worth roughly $532 million. This is compared to 39 hedge funds in the previous quarter with a total stake value of $901 million.
4. NICE Ltd. (NASDAQ: NICE)
Number of Hedge Fund Holders: 33
NICE Ltd. (NASDAQ: NICE) is a provider of enterprise software solutions, and the company operates across the globe. It has two segments: Customer Engagement and Financial Crime and Compliance, and ranks 4th on our list of the best security stocks to buy now.
This June, NICE Ltd. (NASDAQ: NICE) was upgraded to Overweight from its previous Neutral rating with a $260 price target over at J.P. Morgan. The firm’s analyst Paul Coster has commented that they are expecting robust execution leading to upward revisions in estimates from the stock.
In the first quarter of 2021, NICE Ltd. (NASDAQ: NICE) had an EPS of $1.54, beating estimates by $0.04. The company’s revenue was $456.95 million, up 11.12% year over year and beating estimates by $6.34 million, and it has a gross profit margin of 66.34%. The stock has gained 36.33% in the past year.
As of the end of the first quarter of 2021, 33 hedge funds held stakes in NICE Ltd. (NASDAQ: NICE), worth roughly $868 million. This is compared to 26 hedge funds in the previous quarter with a total stake value of $726 million.
Artisan Partners Limited Partnership, a high value-added investment management firm, mentioned NICE Ltd. (NASDAQ: NICE) in its fourth-quarter 2020 investor letter. Here’s what they said:
“NICE is an Israeli software company that provides software for call centers, which combines omnichannel routing of customer inquiries (e.g., voice, text, email, social media) with analytics/AI, workforce management and robotic process automation (RPA). NICE has best-in-class software across each of these software categories and has a strong value proposition of both improving the customer experience of call center interactions while simultaneously reducing operating costs through automation, intelligence and flexibility. We believe the company should benefit from the ongoing transition to cloud computing, contributing to increased adoption of its analytics and AI solutions.”
3. Cloudflare, Inc. (NYSE: NET)
Number of Hedge Fund Holders: 45
Cloudflare, Inc. (NYSE: NET) is the operator of a cloud platform delivering network services to businesses across the globe. The company offers integrated cloud-based security solutions and ranks 3rd on our list of the best security stocks to buy now.
The stock has been gaining in light of its positive Q1 earnings report. The stock was initiated with an Outperform at KGI Securities this July with a $135 price target as well.
In the first quarter of 2021, Cloudflare, Inc. (NYSE: NET) had an EPS of -$0.03, in line with estimates. The company’s revenue was $138.06 million, up 51.21% year over year and beating estimates by $7.04 million, and it has a gross profit margin of 76.5%. The stock has gained 36.02% in the past 6 months and 44.34% year to date.
As of the end of the first quarter of 2021, 45 hedge funds held stakes in Cloudflare, Inc. (NYSE: NET), worth roughly $792 million. This is compared to 60 hedge funds in the previous quarter with a total stake value of $1.18 billion.
Alger Mid Cap Focus Fund mentioned Cloudflare, Inc. (NYSE: NET) in its fourth-quarter 2020 investor letter. Here’s what they said:
“Cloudflare. Inc. provides a broad range of network services to businesses of all sizes across the world. Cloudflare’s intelligent global network spans more than 200 cities in over 100 countries. It offers network security, performance and reliability to a growing portion of global web traffic. Today. over 15% of global internet requests go through Cloudflare. Cloudflare’s serverless network design allows this global network to be a key component layer as new developments for edge cornputing. 5G and Internet of Things increase the importance of secure. reliable edge networks. Cloudflare stock outperformed in the fourth quarter following the announcement of Cloudflare One, a cloud-bas. network-as-a-service platform designed to replace the traditional enterprise network infrastructure. The Cloudflare One solution merges existing Cloudflare access and security solutions along with new enterprise-specific features into a unified Zero Trust network that can be managed through a single “pane of glass.” or display screen. With the rapid shift to remote work caused by the pandemic, this product increases Cloudflare’s potential for winning business from enterprise customers seeking to adapt to this new business environment.
While Cloudflare One adoption is still early. Cloudflare has already started to demonstrate an improved ability to sell to large customers. When discussing its third quarter results. Cloudflare said that it is continuing to sign up larger enterprise customers. including its first client to generate more than $10 million in annual recurring revenue. Cloudflare has just started to better monetize its more than 100.000 paying customer base. which along with continued product innovation, gives the company strong growth potential.”
2. Palo Alto Networks, Inc. (NYSE: PANW)
Number of Hedge Fund Holders: 64
Palo Alto Networks, Inc. (NYSE: PANW) is a global provider of cybersecurity solutions. The company provides firewall appliances and software, among a range of other products and services, and ranks 2nd on our list of the best security stocks to buy now.
In light of a Russian-linked ransomware attack launched by hackers known as REvil, cybersecurity stocks like Palo Alto Networks, Inc. (NYSE: PANW) have begun to rally, with the company itself rising by about 5.1% as of July 6th. This June, Piper Sandler raised its price target on Palo Alto Networks, Inc. (NYSE: PANW) as well, from $425 to $450 while keeping its Overweight rating on the shares.
In the fiscal third quarter of 2021, Palo Alto Networks, Inc. (NYSE: PANW) had an EPS of $1.38, beating estimates by $0.09. The company’s revenue was $1.07 billion, up 23.52% year over year and beating estimates by %15.99 million, and it has a gross profit margin of 69.74%. The stock has gained 4.7% in the past 6 months and 9.13% year to date.
As of the end of the first quarter of 2021, 64 hedge funds held stakes in Palo Alto Networks, Inc. (NYSE: PANW), worth roughly $4.01 billion. This is compared to 61 hedge funds in the previous quarter with a total stake value of $4.93 billion.
1. CrowdStrike Holdings, Inc. (NASDAQ: CRWD)
Number of Hedge Fund Holders: 77
CrowdStrike Holdings, Inc. (NASDAQ: CRWD) is a provider of cloud-delivered solutions for endpoint and cloud workload protection in the US and internationally. The company offers 19 cloud modules on the Falcon platform and ranks 1st on our list of the best security stocks to buy now.
This June, in light of increased consumer demand for CrowdStrike Holdings, Inc. (NASDAQ: CRWD) products and services as represented by the results of a proprietary survey, Stifel upgraded the stock from Hold to Buy. The firm has a $300 price target on the shares now, as compared to its previous $24o target.
In the fiscal first quarter of 2022, CrowdStrike Holdings, Inc. (NASDAQ: CRWD) had an EPS of $0.10, beating estimates by $0.04. The company’s revenue was $302.84 million, up 70.06% year over year and beating estimates by $11.07 million, and it has a gross profit margin of 73.86%. The stock has gained 17.91% in the past 6 months and 31.57% year to date.
As of the end of the first quarter of 2021, 77 hedge funds held stakes in CrowdStrike Holdings, Inc. (NASDAQ: CRWD), worth roughly $5.25 billion. This is compared to 92 hedge funds in the previous quarter with a total stake value of $7.24 billion.
Carillon Tower Advisers, an investment management firm, mentioned CrowdStrike Holdings, Inc. (NASDAQ: CRWD) in its first-quarter 2021 investor letter. Here’s what they said:
“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.”
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