Five cybersecurity stocks to watch in the first quarter of 2022

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Five cybersecurity stocks to watch in the first quarter of 2022

 Five cybersecurity stocks to watch in the first quarter of 2022
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Highlights

  • CrowdStrike Holdings, Inc. (NASDAQ: CRWD) expects its fiscal 2022 revenue to be between US$1.42 billion and US$1.43 billion.

  • Cloudflare, Inc. (NYSE: NET) expects its Q4, FY21 revenue to be between US$184 million and US$185 million.

  • Fortinet, Inc. (NASDAQ: FTNT) will report its fourth-quarter fiscal 2021 results on February 3.

The cybersecurity stocks would be closely watched in 2022. They have made significant strides last year, driven by demand and concerted efforts to introduce innovative products in the market. The segment is likely to see massive investments in the coming months as President Joe Biden’s clarion call to beef up security for the US companies has raised the competition.

Besides, the work-from-home (WFH) trend has opened up a whole new opportunity to tap into an area that is progressively becoming a mainstream working model.

Hence, cybersecurity companies find themselves in a favorable yet competitive environment that promises better returns on investments and long term-opportunities.

We explore the top five cybersecurity stocks that are expected to be in the limelight in 2022.

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CrowdStrike Holdings, Inc. (NASDAQ: CRWD)

CrowdStrike is a technology company based in Austin, Texas. It offers various cybersecurity solutions ranging from endpoint security to threat intelligence.

Its shares traded at US$188.56 at 1:38 pm ET on Jan 6, up 5.16% from their previous close. The stock declined 32.34% over the past six months. It has a market cap of US$43.34 billion, a forward P/E one year of -259.84, and an EPS of US$-0.94.

The 52-week highest and lowest stock prices were US$298.48 and US$168.67, respectively.

Its trading volume was 5,003,434 on January 5.

The revenue was US$380.1 million in Q3, FY22, up 63% YoY. It reported a net loss of US$50.45 million against a loss of US$24.53 million in Q3, FY21.

For the fourth quarter of fiscal 2022, the firm expects its revenue to be between US$406.5 million and US$412.3 million. For fiscal 2022, it expects revenue of US$1.42 billion to US$1.43 billion.

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Top cybersecurity stocks to explore in the first quarter of 2022

Source: Pixabay

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Palo Alto Networks, Inc. (NASDAQ: PANW)

Palo Alto is a cybersecurity firm based in Santa Clara, California. Its platform offers products like advanced firewalls, cloud-based software security, etc.

The stock was priced at US$527.67 at 1:39 pm ET on Jan 6, up 4.52% from its previous close. The PANW stock rose 28.82% over the past six months.

Its market cap is US$52.55 billion, and the forward P/E one year is -424.25. Its EPS is US$-5.27.

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The stock saw the highest price of US$572.67 and the lowest price of US$311.56 in the last 52 weeks. Its share volume on Jan 5 was 1,248,976.

Its revenue rose by 32% YoY to US$1.2 billion in Q1, FY22. On a GAAP basis, it reported a net loss of US$103.6 million, or US$1.06 per diluted share, against a loss of US$92.2 million, or US$0.97 per diluted share a year ago. In the second quarter of fiscal 2022, the company expects its revenue to be between US$1.265 billion and US$1.285 billion.

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Cloudflare, Inc. (NYSE: NET)

Cloudflare is a web infrastructure and web security firm. It offers a content delivery network and DDoS mitigation services. It is based in San Francisco, California.

Its shares traded at US$104.96 at 1:41 pm ET on Jan 6, down 0.93% from their previous close. the stock tumbled 2.74% over the past six months. It has a market cap of US$34.01 billion, and a forward P/E one year of -331.09. Its EPS is US$-0.70.

The 52-week highest and lowest stock prices were US$221.64 and US$60.96, respectively. Its trading volume was 6,186,046 on Jan 5.

The company's revenue increased by 51% YoY to US$172.3 million in Q3, FY21. Its net loss came in at US$107.33 million compared to a loss of US$26.46 million in Q3, FY20. For the fourth quarter of fiscal 2021, it expects revenue to be around US$184 million to US$185 million.

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Zscaler, Inc. (NASDAQ: ZS)

Zscaler is an information technology firm based in San Jose, California. It provides web security services to clients.

The stock was priced at US$260.48 at 1:42 pm ET on Jan 6, up 0.71% from its previous close. The ZS stock rose 16.59% over the past six months. Its market cap is US$36.73 billion, the forward P/E one year is -112.59, and its EPS is US$-2.17.

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The stock saw the highest price of US$376.11 and the lowest price of US$157.03 in the last 52 weeks. Its share volume on Jan 5 was 3,437,738.

The company's revenue surged 62% YoY to US$230.5 million in Q1, FY22. On a non-GAAP basis, its net income came in at US$21 million against an income of US$20 million in Q1, FY21.

For the second quarter of fiscal 2022, the firm expects its revenue to be between US$240 million and US$242 million.

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Cybersecurity stocks: CRWD, PANW, NET, ZS, FTNT

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Fortinet, Inc. (NASDAQ: FTNT)

Fortinet is a cybersecurity firm based in Sunnyvale, California. It develops and markets security solutions like firewalls, antivirus, and endpoint security components.

Its shares traded at US$315.65 at 1:43 pm ET on Jan 6, up 4.01% from their previous close. Its stock value soared 20.84% over the past six months.

It has a market cap of US$51.38 billion, a P/E ratio of 94.67, and a forward P/E one year of 106.49. Its EPS is US$3.32.

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The 52-week highest and lowest stock prices were US$371.77 and US$137.31, respectively. Its trading volume was 2,406,573 on Jan 5.

It will report its fourth-quarter fiscal 2021 results on Feb 3 after the closing bell. Meanwhile, in the third quarter of FY2021, its revenue surged 33% YoY to US$867.2 million. On a GAAP basis, its net income was US$163.1 million against US$123.4 million a year ago.

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Bottomline

The US saw a string of cybersecurity attacks on the American companies, including attacks on the meat processing firm JBS SA and Colonial Pipeline Co. in 2021, galvanizing a joint effort of the government and private stakeholders to build a robust shield against hackers. These developments have spurred renewed activities in the cybersecurity sector.

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