Web-based attacks have quickly become more of a threat to business operations than traditional burglaries at brick-and-mortar facilities. It merely takes one successful ransomware attack to bring operations to a grinding halt and take a massive chunk out of the bottom line.
Cyberscurity has never been more important considering the fact that more and more people are working from home, relying on the internet for just about everything. AKAM, FYE and PANW are likely to increase in value as that much more work is done on the web and from home.
Palo Alto Networks (PANW)
The public does not always have the opportunity to invest in a true industry trailblazer. After all, merely 1% of all businesses are publicly traded. PANW represents one of those rare opportunities to own a piece of a burgeoning industry titan. PANW network security solutions are making applications as safe as possible on both business and government networks.
PANW is one of the more dominant companies in the Software – Security sector. The POWR Ratings reinforce this sentiment, ranking PANW as the fourth best stock of 23 in the segment. PANW has a POWR Rating of A for its trade grade and B in every other component. If you want to own a piece of the cybersecurity pie, PANW provides you with just that opportunity.
This elite cybersecurity platform protects applications, content and those who use networks at businesses and governmental agencies alike. These essential protections have become even more important now that most companies have become increasingly reliant on the web amidst the coronavirus outbreak.
Though PANW costs a pretty penny, currently trading at $233.04, it is still below its 52-week high of $251.11. The stock traded at $132.58 two months ago when the world came to a standstill as a result of the pandemic. PANW consistently beats earnings estimates, typically by 4% or more. The company has a track record of doubling its sales every half-decade.
PANW is both a defensive play amidst the pandemic and also a growth stock. Investors really do get the best of both worlds with this stock market superstar. PANW’s pivot away from hardware sales to subscription-based services looks quite prudent considering the fact that the company’s services represent nearly three-quarters of sales through the first six months of the 2020 fiscal year.
Akamai Technologies (AKAM)
The delivery of online content and applications is important yet the speed and quality of such information is also a strong selling point. AKAM provides cloud services to enhance the speed and quality of online applications and content ranging from business tools to web pages, streaming video and beyond.
AKAM has an 8.9% expected earnings growth rate for this year. This rate is considerably higher than the 2.5% expected for the industry as a whole. The POWR Ratings have AKAM rated as a B (Buy) with an A Trade Grade and a #3 overall rating of 49 stocks in the Technology – Services industry. AKAM is only $8 away from its 52-week high of $108.25.
The dramatic spike in web traffic resulting from the coronavirus pandemic has bolstered AKAM’s business all the more. AKAM’s flexible cloud services are built with business purposes squarely in mind. Look for AKAM to continue on its path to the black thanks to its seemingly unstoppable momentum stemming from the COVID-19 outbreak that has redirected that much more business activity to the web.
Every organization is looking for an effective means of preparing for, thwarting, analyzing and responding to online attacks. FEYE provides such services.
FEYE’s anticipated earnings growth rate for the quarter is more than 100% of that compared to the rest of the security industry. Though FEYE is down from $18 to its current price of $11 on the year, the analysts expect the stock to reach $14.39 at some point in the near future.
FEYE quarterly revenue is $225 million, representing a 7% increase on a year-over-year basis. Prospective investors should know FEYE is not yet profitable. However, it might not be long until FEYE reaches the black. The company reported a non-GAAP loss of two cents per share this prior quarter.
Take a chance on this affordably priced cybersecurity services provider and your investment will likely increase in value in response to the corporate and society-wide transition toward conducting business on the internet.
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PANW shares were unchanged in premarket trading Monday. Year-to-date, PANW has gained 2.89%, versus a -7.67% rise in the benchmark S&P 500 index during the same period.
About the Author: Patrick Ryan
Patrick Ryan has more than a dozen years of investing experience with a focus on information technology, consumer and entertainment sectors. In addition to working for StockNews, Patrick has also written for Wealth Authority and Fallon Wealth Management. More...
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