5 Cybersecurity Stocks to Buy as US-China Tensions Mount

1. Palo Alto Networks, Inc. (NYSE:PANW)

Number of Hedge Fund Holders: 87

California-based network security provider Palo Alto Networks, Inc. (NYSE:PANW) has posted gains of 28.12% in the last 12 months as of July 25, highlighting its status as a leading cybersecurity company which stands to benefit in the current geopolitical environment.

Morgan Stanley analyst Hamza Fodderwala on June 30 kept an ‘Overweight’ rating on Palo Alto Networks, Inc. (NYSE:PANW) shares and reiterated the stock as a top pick, along with a $823 price target. He noted that the company shares are “materially mispriced” considering its 30% free cash flow growth and increasing stock buybacks.

87 hedge funds out of the 900+ tracked by Insider Monkey reported bullish bets on Palo Alto Networks, Inc. (NYSE:PANW) at the end of Q1 2022, with an aggregate worth of $3.9 billion. This shows vastly improving investor confidence in the company over the previous quarter where 73 hedge funds held PANW shares. Arrowstreet Capital, with a position worth more than $471 million, stood as the biggest shareholder of Palo Alto Networks, Inc. (NYSE:PANW) in the first quarter of 2022.

Here is what ClearBridge Investments had to say about Palo Alto Networks, Inc. (NYSE:PANW) in its Q1 2022 investor letter:

“The portfolio also saw solid performance from cybersecurity names Palo Alto Networks (NYSE:PANW) which is gaining prominence as the risk of global cyberattacks increases as part of the Russian offensive. On an individual stock basis, leading contributors to absolute returns in the first quarter included positions in Palo Alto Networks.”

You can also take a look at 10 Best Stocks Under $10 to Buy Right Now and 15 Best Security Stocks to Buy Now.

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