Below you can see our list of the top 5 cybersecurity stocks to buy according to hedge funds. For our detailed discussion and a more comprehensive list please see 10 Best Cybersecurity Stocks To Buy Now.
5. Proofpoint Inc (NASDAQ: PFPT)
No. of hedge funds: 37
Total value of hedge fund holdings: $489 million
Proofpoint was founded in 2002 as an e-mail security company but it has since expanded its business to fit the needs of a modern office. This means outbound data loss protection, social media coverage and various other vulnerable spots that could allow the wrong people to access your data.
Insider Monkey spotted the company on 34 hedge fund portfolios, a number that has since then increased to 37, seeing Proofpoint Inc getting increased investor attention. Financially, the company has been a strong performer, beating all predictions and pulling consistently strong numbers for the past four years.
4. Couldflare (NYSE: NET)
No. of hedge funds: 44
Total value of hedge fund holdings: $537 million
Cloudflare is a leader in edge computing. It handles a good part of the traffic the average consumer goes through online today. With services such as DDoS mitigation and internet security, it acts like a reverse proxy between you and the websites you visit.
Aside from establishing itself as an internet power, Cloudflare had its IPO on the New York Stock Exchange just last year. This year it has been one of the best-performing US stocks, currently being found on 44 hedge fund portfolios, way above its all time high of 33.
3. Okta Inc. (NASDAQ: OKTA)
No. of hedge funds: 51
Total value of hedge fund holdings: $187 billion
Okta provides identity authentication services. This means building a way to verify and enforce who accesses what at any given time, from your run-of-the-mill passwords to biometrics. Okta has been a strong up-and-comer since last year it almost doubled its revenue and beat analysts’ predictions by some $11 million.
Starting with a mainly SMB-oriented client pool, Okta has since leveled up to serving over 1400 enterprises with revenue over $100 000 out of 8000 reported clients. This number continues to grow rapidly.
2. Palo Alto Networks Inc. (NASDAQ: PANW)
No. of hedge funds: 59
Total value of hedge fund holdings: $319 billion
Palo Alto Networks is a giant when it comes to providing firewalls and various cloud-based services to extend the functionalities of these firewalls. They have a multinational market, outperforming even Cisco in this year’s second quarter.
Equally, when it comes to trading, the number of bullish hedge fund positions moved up by 8 in recent months. The company was in 59 hedge funds’ portfolios at the end of the third quarter of 2020. The all time high for this statistics is 52. This means the bullish number of hedge fund positions in this stock currently sits at its all time high.
1.Crowdstrike Holdings Inc. (NASDAQ: CRWD)
No. of hedge funds: 71
Total value of hedge fund holdings: $430 billion
Crowdstrike provides a broad spectrum of solutions with their main aim being intrusion and breach prevention, such as some of the breaches they helped investigate – high-profile cases such as Sony Pictures and the DNC.
Recently, in similar stocks to CRWD, the average amount invested in these stocks was $1223 million with an average of 41.9 hedge funds. In Crowdstrike’s case this number is way higher at $4301 million, even though it has experienced a slight decrease from its previous appearance on 78 hedge funds portfolios. However, Crowdstrike’s stock returns recently outperform predictions by a sizable margin which explains why hedge funds pile into it, compared to stocks with similar market returns.
Please also see 10 Best Cloud Stocks To Buy Now and 10 Best Artificial Intelligence Stocks To Buy
Disclosure: None.
