Priya PatelTLDR:
- Cybersecurity stocks like CyberArk Software, CrowdStrike, and Okta are recommended for investment due to increased cyber threats.
- CyberArk Software saw 36% growth in annual recurring revenues, CrowdStrike maintained revenue growth above 30%, and Okta stock is expected to have over 20% upside.
InvestorPlace contributor Charles Munyi recommends investing in cybersecurity stocks to protect portfolios as hacker threats on U.S. infrastructure increase. The article highlights three key cybersecurity stock picks:
- CyberArk Software (CYBR): The company saw a 36% growth in annual recurring revenues, with subscriptions now accounting for 75% of total ARR. CyberArk software is anticipated to have a positive outlook for 2024 with revenue growth expected to be between 22% to 24%.
- CrowdStrike (CRWD): Under CEO George Kurtz’s leadership, CrowdStrike has achieved significant growth in revenue and profitability. With a 68% compounded annual revenue growth rate over the last five years, CrowdStrike continues to deliver impressive numbers. The company’s cloud-native single-platform architecture positions it well for future growth.
- Okta (OKTA): Despite past execution issues, Okta stock is showing promise with increasing subscription revenue and free cash flow generation. Bank of America analyst Madeline Brooks upgraded Okta to a “buy,” citing improving fundamentals and robust deal pipelines. Okta’s forward EV/Sales multiple of 5.5 indicates potential for growth.
The article stresses the importance of cybersecurity stocks in the current landscape of heightened cyber threats from state-sponsored actors and ransomware attacks. With organizations prioritizing security spending, cybersecurity stocks are likely to benefit from the increased demand for tools and solutions. Considering the growth and potential of CyberArk Software, CrowdStrike, and Okta, investors may find these cybersecurity stock picks attractive for portfolio protection and potential returns.
