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15 Best Cybersecurity Stocks to Buy Now

In this article we will take a look at the 15 best cybersecurity stocks to buy now. You can skip our detailed analysis of these stocks, and go directly to the 5 Best Cybersecurity Stocks to Buy Now.

Cybersecurity involves the protection of devices, data, and networks from external illegal access. Cybersecurity companies offer services and solutions to protect information and data from disruption.

With the increased dependence on digital gadgets and major companies moving towards digitalization in today's world, the threats of cybercrimes are increasing. This can be seen from the ransomware attacks, which first started in 1989. According to Cybercrime Magazine, the global cybercrime cost is expected to reach $10.5 trillion annually by 2025. This has made more and more organizations employ cybersecurity companies for protecting their sensitive information. The increase in demand for cybersecurity companies makes cybersecurity stocks a beneficial investment option today.

The forced remote work policy due to novel coronavirus skyrocketed the cyberthreat and cybercrime rates. Help Net Security published a report, stating that in 2020, malware grew by 358%, whereas ransomware increased by 435%, compared with 2019. The report also suggested that remote work will likely remain the target of cybercrimes in the coming years.

According to a report published by CEPro, the cybersecurity market is expected to be valued at $403 billion by 2027, growing at a CAGR of 12.5%. The U.S. is home to some of the biggest cybersecurity companies in the world, including Palo Alto Networks, Inc. (NYSE: PANW), Cloudflare, Inc. (NYSE: NET), Zscaler, Inc. (NASDAQ: ZS), Fortinet, Inc. (NASDAQ: FTNT), etc. These companies provide services to several organizations in the country and internationally. Considering the recent waves of cyber hacks, the call for cybersecurity companies, in private and governmental enterprises, is going to rise. For example, recently, Fortinet, Inc. (NASDAQ: FTNT) announced its contract with the U.S. Army as a manufacturer of IT solutions.

The U.S. is one of the countries most vulnerable to cybercrimes, with 18.2% of all ransomware attacks taking place in the country. In May, U.S. President allocated billions of dollars to cybersecurity as a part of his $2 trillion infrastructure proposal. According to analysts, this has certainly caused cybersecurity stocks to grow. For example, the shares of Cloudflare, Inc. (NYSE: NET) have soared 188% in the past year. Similarly, the 12-month gains of Zscaler, Inc. (NASDAQ: ZS) are about 87.3%.

Wedbush Securities also sees potential in cybersecurity stocks. Dan Ives, an analyst at Wedbush, announced the firm’s predictions regarding the cybersecurity stocks and released his top picks in June. He said that cloud workload is expected to reach 70% by 2025, compared with 40% today, mainly due to the increasing cybersecurity threats. The firm also indicated a $200 billion growth opportunity in cloud services alone. Due to this increasing demand and potential, some of the stocks will remain the top choice of the investors, such as Palo Alto Networks, Inc. (NYSE: PANW), Fortinet, Inc. (NASDAQ: FTNT), Tenable Holdings, Inc. (NASDAQ: TENB), Zscaler, Inc. (NASDAQ: ZS), Varonis Systems, Inc. (NASDAQ: VRNS), etc.

But investing is becoming difficult by the day, even for the smart money. The entire hedge fund industry is feeling the reverberations of the changing financial landscape. Its reputation has been tarnished in the last decade, during which its hedged returns couldn’t keep up with the unhedged returns of the market indices. On the other hand, Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 124 percentage points since March 2017. Between March 2017 and February 26th 2021 our monthly newsletter’s stock picks returned 197.2%, vs. 72.4% for the SPY. Our stock picks outperformed the market by more than 124 percentage points (see the details here). We were also able to identify in advance a select group of hedge fund holdings that significantly underperformed the market. We have been tracking and sharing the list of these stocks since February 2017 and they lost 13% through November 16th. That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.

Photo by Jefferson Santos on Unsplash

With this context in mind, let’s analyze the 15 best cybersecurity stocks to buy now. We took into account hedge fund sentiment, analysts’ ratings, long-term growth potential, and fundamentals while choosing these stocks.

15 Best Cybersecurity Stocks to Buy Now

15. Rapid7, Inc. (NASDAQ: RPD)

Number of Hedge Fund Holders: 25

Rapid7, Inc. (NASDAQ: RPD) is a cybersecurity company and a security solution provider. The company provides solutions in threat detection, application security, and vulnerability risk management. It has recently launched a cloud-native security platform, InsightCloudSec, that would help organizations to secure their cloud programs. RPD ranks 13th on our list of the best cybersecurity stocks to buy now.

In Q1 2021, Rapid7, Inc. (NASDAQ: RPD) generated a revenue of $117.4 million, presenting 24% year-over-year growth. The EPS stood at -$0.03, beating the market consensus of -$0.06. The revenue from the products accounted for $109.2 million of the gross revenue, and the services segment generated $8.1 million. The international sales also jumped from $15.6 million in Q1 2020 to $21 million in the current quarter. The number of customers grew by 11%, compared with the past year.

In the second quarter, Rapid7, Inc. (NASDAQ: RPD) gave solid guidance and expects revenue in the range of $121.7 million to $123.3 million. In the past year, the RPD stock has soared by 87.7% and 16.3% in the past six months. Recently, Piper Sandler raised its price target on the RPD stock to $110, with an ‘Overweight’ rating on the shares.

The hedge funds are also taking interest in Rapid7, Inc. (NASDAQ: RPD). As of Q1, 25 funds have stakes in the company, increased from 21 in the previous quarter. Washington Harbour Partners is the largest shareholder of the company with shares worth $25.6 million.

Like CrowdStrike Holdings, Inc. (NASDAQ: CRWD), Cisco Systems, Inc. (NASDAQ: CSCO), Dynatrace, Inc. (NYSE: DT), Okta, Inc (NASDAQ: OKTA), Palo Alto Networks, Inc. (NYSE: PANW), Cloudflare, Inc. (NYSE: NET), and Zscaler, Inc. (NASDAQ: ZS), Rapid7, Inc. (NASDAQ: RPD) is one of the best cybersecurity stocks to invest in.

14. Fortinet, Inc. (NASDAQ: FTNT)

Number of Hedge Fund Holders: 23

Fortinet, Inc. (NASDAQ: FTNT) is a cybersecurity company that delivers security for networks, cloud, applications, and mobile environments. The company provides services to some of the largest enterprises, services providers, and government organizations globally. It is headquartered in California and employs nearly 9,000 people. Fortinet, Inc. (NASDAQ: FTNT) ranks fifteenth on our list of the best cybersecurity stocks to buy now.

In Q1 2021, Fortinet, Inc. (NASDAQ: FTNT) reported a net income of $135.6 million, compared to $105 million during the same period last year. The EPS beat the market consensus by $0.07 at $0.81, up from $0.60 in the prior-year quarter. The revenue also saw a 23% year-over-year growth at $710 million, with service revenue accounting for $469.6 million of the gross revenue.

In the second quarter, the company expects revenue in between $733 to $747 million and EPS in the range of $0.83 to $0.88. The FTNT stock saw a low of $84 in March 2020 but recovered quickly, gaining 89.9% in the past year. Due to strong earnings in the first quarter, many investment banks raised their price targets on the FTNT stock, such as Piper Sandler, Deutsche Bank, Cowen, etc. Recently, Barclays also raised its price target on Fortinet, Inc. (NASDAQ: FTNT) to $260, with an ‘Equal Weight’ rating.

At the end of Q1 2021, 23 hedge funds tracked by Insider Monkey have positions in Fortinet, Inc. (NASDAQ: FTNT), worth $906 million. Renaissance Technologies is the largest shareholder of the company, with 2.4 million shares, worth $447 million.

Like CrowdStrike Holdings, Inc. (NASDAQ: CRWD), Cisco Systems, Inc. (NASDAQ: CSCO), Dynatrace, Inc. (NYSE: DT), Okta, Inc (NASDAQ: OKTA), Palo Alto Networks, Inc. (NYSE: PANW), Cloudflare, Inc. (NYSE: NET), and Zscaler, Inc. (NASDAQ: ZS), Fortinet, Inc. (NASDAQ: FTNT) is one of the best cybersecurity stocks to invest in.

13. Mimecast Limited (NASDAQ: MIME)

Number of Hedge Fund Holders: 24

Mimecast Limited (NASDAQ: MIME) is a London-based IT security company that specializes in cloud-based email management. Over 39,000 organizations employ the company, including 20,000 of those who require Microsoft 365 security. As of 2021, the company delivers over 776 million emails a day.

In Q4 FY21, Mimecast Limited (NASDAQ: MIME) reported a net income of $18.5 million, up from $9.7 million during the same period last year. The EPS beat the consensus by $0.05 at $0.28. Free cash flow also increased to $24 million, compared with $12.1 million a year ago. The revenue presented a 17% year-over-year growth at $133.9 million. For Q1 FY22, revenue is expected to fall between $137.2 million and $138.6 million. Recently, Barclays raised its price target on Mimecast Limited (NASDAQ: MIME) to $61, with an ‘Overweight’ rating on the shares.

In July, Needham and Monness Crespi also upgraded Mimecast Limited (NASDAQ: MIME) due to strong guidance. After hitting a low of $30.8 in March, the MIME stock has recovered, gaining 30.6% in the past year.

Of the 866 hedge funds tracked by Insider Monkey, 24 hedge funds have stakes in Mimecast Limited (NASDAQ: MIME), worth $221.4 million. With 1.2 million shares, worth $49.6 million, Lakewood Capital Management is the leading shareholder of the company.

ClearBridge Investments released its Q1 2021 investor letter and mentioned Mimecast Limited (NASDAQ: MIME) and other stocks in it. Here is what the firm has to say about MIME:

Mimecast, also in the IT sector, runs a proprietary operating system that holds a leading position in email safety. We exited the shares based on an elongated small business sales cycle as well as complications from the SolarWinds breach.”

Like CrowdStrike Holdings, Inc. (NASDAQ: CRWD), Cisco Systems, Inc. (NASDAQ: CSCO), Dynatrace, Inc. (NYSE: DT), Okta, Inc (NASDAQ: OKTA), Palo Alto Networks, Inc. (NYSE: PANW), Cloudflare, Inc. (NYSE: NET), and Zscaler, Inc. (NASDAQ: ZS), Mimecast Limited (NASDAQ: MIME) is one of the best cybersecurity stocks to invest in.

12. Check Point Software Technologies Ltd. (NASDAQ: CHKP)

Number of Hedge Fund Holders: 31

Check Point Software Technologies Ltd. (NASDAQ: CHKP) is an American-Israeli software company that provides software and hardware products for IT security. Check Point Software Technologies Ltd. (NASDAQ: CHKP) provides services in the cloud, network, mobile, and data security. It has over 100,000 enterprise customers. Check Point Software Technologies Ltd. (NASDAQ: CHKP) ranks 12th on our list of the best cybersecurity stocks to buy now.

In Q1 2021, Check Point Software Technologies Ltd. (NASDAQ: CHKP) reported a net income of $211 million, up from $206 million during the same period last year. The EPS grew by 9% year-over-year at $1.54, beating the consensus by $0.04. The revenue stood at $508 million, compared with $486 million in the prior-year quarter, presenting a 4% growth. Security subscriptions accounted for $177 million of the gross revenue. Recently, the company has announced its integration with Alibaba Cloud in order to extend Check Point Software Technologies Ltd. (NASDAQ: CHKP)’s cloud network security to Alibaba customers. In May, Cowen initiated coverage on the CHKP stock with an ‘Outperform’ rating and a $140 price target.

The number of hedge funds having positions in Check Point Software Technologies Ltd. (NASDAQ: CHKP) increased from 26 to 31 in the first quarter. The total value of these stakes is $494.5 million. Alyeska Investment Group is the largest shareholder of the company, with shares worth $71.3 million.

Like CrowdStrike Holdings, Inc. (NASDAQ: CRWD), Cisco Systems, Inc. (NASDAQ: CSCO), Dynatrace, Inc. (NYSE: DT), Okta, Inc (NASDAQ: OKTA), Palo Alto Networks, Inc. (NYSE: PANW), Cloudflare, Inc. (NYSE: NET), and Zscaler, Inc. (NASDAQ: ZS), Check Point Software Technologies Ltd. (NASDAQ: CHKP) is one of the best cybersecurity stocks to invest in.

Harding Loevner recently released its Q1 2021 investor letter and mentioned Check Point Software Technologies Ltd. (NASDAQ: CHKP) in it. Here is what the firm has to say about CHKP:

“Another software holding, Israeli security firm Check Point, saw its shares fall after announcing that investments to fund its future growth will reduce margins this year.”

11. Tenable Holdings, Inc. (NASDAQ: TENB)

Number of Hedge Fund Holders: 32

Tenable Holdings, Inc. (NASDAQ: TENB) is an American-based cyber-security company, providing software that deals with the entire infrastructure’s security risks. The company’s products also allow customers to identify and prioritize vulnerabilities in the modern IT environment. Tenable Holdings, Inc. (NASDAQ: TENB) stands eleventh on our list of the best cybersecurity stocks to buy now. As of 2021, it has over 30,000 enterprise customers.

In Q1 2021, Tenable Holdings, Inc. (NASDAQ: TENB) reported a net income of $14.7 million, compared with $8.8 million during the same period last year. The EPS also beat the market consensus by $0.07 at $0.13. The consolidated revenue presented a 20% year-over-year growth at $119.5 million. Free cash flow also increased massively from $3.9 million in Q1 2020 to $37.6 million in the recent quarter. Due to the strong earnings, the company also reported strong guidance, expecting revenue in the range of $124 million to $126 million. The EPS expectation is between $0.04 to $0.05. In the past year, the TENB stock has delivered a 37.7% return to shareholders. In June, Needham initiated coverage on Tenable Holdings, Inc. (NASDAQ: TENB) with a ‘Buy’ rating and a $51 price target.

At the end of Q1 2021, 32 hedge funds tracked by Insider Monkey have positions in Tenable Holdings, Inc. (NASDAQ: TENB), worth $532.5 million. With over 3 million shares, worth $110.7 million, RGM Capital is the leading shareholder of the company.

Like CrowdStrike Holdings, Inc. (NASDAQ: CRWD), Cisco Systems, Inc. (NASDAQ: CSCO), Dynatrace, Inc. (NYSE: DT), Okta, Inc (NASDAQ: OKTA), Palo Alto Networks, Inc. (NYSE: PANW), Cloudflare, Inc. (NYSE: NET), and Zscaler, Inc. (NASDAQ: ZS), Tenable Holdings, Inc. (NASDAQ: TENB) is one of the best cybersecurity stocks to invest in.

10. NortonLifeLock Inc. (NASDAQ: NLOK)

Number of Hedge Fund Holders: 32

NortonLifeLock Inc. (NASDAQ: NLOK) is an American software company with headquarters in Arizona, U.S. The company’s wide range of products offers cybersecurity services to its customers. These user-friendly products detect, prevent, and respond to cybercrimes effectively. NortonLifeLock Inc. (NASDAQ: NLOK) has over 80 million customers and members in more than 150 countries. NortonLifeLock Inc. (NASDAQ: NLOK) ranks tenth on our list of the best cybersecurity stocks to buy now.

In Q4 FY21, NortonLifeLock Inc. (NASDAQ: NLOK) reported a net income of $234 million, compared with $167 million during the same period last year. The EPS beat the market estimate by $0.02 at $0.40. The revenue presented an 11% year-over-year growth at $677 million. The company's board announced a quarterly dividend of $0.125 per common share.

Due to these strong numbers, many investment banks raised their price targets on the NLOK stock recently, such as Argus, Barclays, and BofA. BofA double upgraded NortonLifeLock Inc. (NASDAQ: NLOK) to ‘Buy’ after a solid quarter, high margin, and above-consensus guidance. The NLOK stock has gained 32.9% in the past year.

As of Q1, the number of hedge funds having positions in NortonLifeLock Inc. (NASDAQ: NLOK) increased to 32, compared with 29 in the previous quarter. Starboard Value LP is the company’s largest shareholder, with over 21 million shares, worth $448.6 million.

9. Varonis Systems, Inc. (NASDAQ: VRNS)

Number of Hedge Fund Holders: 32

Varonis Systems, Inc. (NASDAQ: VRNS) is a data security company and deals in an industry-leading platform that protects the data against external and internal damages. VRNS stands ninth on our list of the best cybersecurity stocks to buy now. Varonis Systems, Inc. (NASDAQ: VRNS) was founded in 2005 and has over 7,000 enterprise customers.

In Q1 2021, Varonis Systems, Inc. (NASDAQ: VRNS) generated over $74.7 million in revenue, up from $54.2 million during the same period last year, presenting 38% year-over-year growth. The EPS stood at -$0.08, beating the consensus by $0.05. The revenues were strongly driven by the subscription segment, which grew 120% year-over-year and accounted for $44.8 million of the gross revenue. The operating cash flow increased from $3.9 million in Q1 2020 to $20.4 million in the recent quarter.

In Q2, the company expects revenue in between $82.5 million and $84 million. Varonis Systems, Inc. (NASDAQ: VRNS)’s quarterly results have been appreciated by the analysts, especially their subscription model. Recently, Cowen initiated its coverage on the VRNS stock with an ‘Outperform’ rating. Piper Sandler also raised its price target on Varonis Systems, Inc. (NASDAQ: VRNS) to $70 with an ‘Overweight’ rating on the shares. Varonis Systems, Inc. (NASDAQ: VRNS) has gained 60.5% in the past year.

As of Q1 2021, 32 hedge funds tracked by Insider Monkey have positions in Varonis Systems, Inc. (NASDAQ: VRNS), worth $381.9 million. The number is up from 30 in the previous quarter. Tremblant Capital is the leading shareholder of the company with shares worth $74.1 million.

Like Cisco Systems, Inc. (NASDAQ: CSCO), CrowdStrike Holdings, Inc. (NASDAQ: CRWD), Dynatrace, Inc. (NYSE: DT), Okta, Inc (NASDAQ: OKTA), Palo Alto Networks, Inc. (NYSE: PANW), Cloudflare, Inc. (NYSE: NET), and Zscaler, Inc. (NASDAQ: ZS), Varonis Systems, Inc. (NASDAQ: VRNS) is one of the best cybersecurity stocks to invest in.

8. CyberArk Software Ltd. (NASDAQ: CYBR)

Number of Hedge Fund Holders: 32

CyberArk Software Ltd. (NASDAQ: CYBR) is a cybersecurity company offering tools for securing privileged accounts through password management. CyberArk Software Ltd. (NASDAQ: CYBR) provides services in finance, retail, energy, healthcare, and government markets. It has over 6,770 enterprise customers, including more than 50% of Fortune 500 companies. CyberArk Software Ltd. (NASDAQ: CYBR) ranks eighth on our list of the best cybersecurity stocks to buy now.

CyberArk Software Ltd. (NASDAQ: CYBR) reported strong quarterly results, beating the guidance. The net income was recorded at $3.8 million and EPS of $0.09, beating the consensus of $0.03. The revenue also reached $113 million, from $107 million in the prior-year quarter. CyberArk Software Ltd. (NASDAQ: CYBR)’s greatest win this quarter remained the subscription revenue, which grew by 180% from the same period last year. The subscription segment also accounted for 22% of the gross revenue. For the second quarter, the company expects revenue between $111 million and $119 million.

In June, Stifel initiated coverage on CyberArk Software Ltd. (NASDAQ: CYBR) with a ‘Buy’ rating and a $160 price target. The analyst Adam Borg appreciated the company’s recent earnings and expects the expansion of shares. The CYBR has gained over 26% in the past year.

The number of hedge funds having stakes in CyberArk Software Ltd. (NASDAQ: CYBR) also increased to 32 in Q1 2021, from 27 in the previous quarter. RGM Capital is the largest shareholder of the company, with shares worth $124.7 million.

Like Cisco Systems, Inc. (NASDAQ: CSCO), CrowdStrike Holdings, Inc. (NASDAQ: CRWD), Dynatrace, Inc. (NYSE: DT), Okta, Inc (NASDAQ: OKTA), Palo Alto Networks, Inc. (NYSE: PANW), Cloudflare, Inc. (NYSE: NET), and Zscaler, Inc. (NASDAQ: ZS), CyberArk Software Ltd. (NASDAQ: CYBR) is one of the best cybersecurity stocks to invest in.

Wasatch Global Investors recently published its Q1 2021 investor letter and mentioned CyberArk Software Ltd. (NASDAQ: CYBR) and other stocks in it. Here is what an investment management firm has to say about CYBR:

“The largest detractor from Fund performance for the first quarter was CyberArk Software Ltd. (CYBR), a provider of security solutions that protect privileged accounts from cyber attacks. The stock-price decline seemed to be part of a broad correction among fast-growing technology names and wasn’t due to any fundamental issues at CyberArk. The company is in the process of transitioning the majority of its business from onpremises installation to software-as-a-service in which customers pay by subscription for the protection they need. We think the transition will be completed successfully and will likely result in a higher price for the stock because revenues and earnings will be more predictable under a subscription-based business model.”

7. Zscaler, Inc. (NASDAQ: ZS)

Number of Hedge Fund Holders: 34

Zscaler, Inc. (NASDAQ: ZS) is an American cybersecurity company providing services in cloud-based solutions. The company’s cloud-built secure platform allows the customers to experience a safe network. It has over 350,000 customers in more than 180 countries and 400 of Forbes Global 2000 companies also employ services by the company. Zscaler, Inc. (NASDAQ: ZS) ranks seventh on our list of the best cybersecurity stocks to buy now.

In Q3 FY21, Zscaler, Inc. (NASDAQ: ZS) reported solid earnings, in-line with the consensus. The net income was recorded at $21.4 million, up from $10.3 million during the same period last year. The EPS beat the estimate by $0.08 at $0.15, compared with $0.07 in Q3 2020. The revenue also grew by 60% year-over-year at $176.4 million. For the fourth quarter, Zscaler, Inc. (NASDAQ: ZS) expects revenue in between $185 million and $187 million, with EPS in the range of $0.08 to $0.09. Recently, many investment banks raised their price targets on the ZA stock, such as Piper Sandler, Deutsche Banks, Mizuho, etc. In July, Needham also rated Zscaler, Inc. (NASDAQ: ZS) as a ‘Strong Buy’ and raised the price target to $280. In the past year, Zscaler, Inc. (NASDAQ: ZS) has delivered an 87.3% return to shareholders.

Of the 866 hedge funds tracked by Insider Monkey, 34 funds have positions in Zscaler, Inc. (NASDAQ: ZS), down from 35 in the previous quarter. The total value of these stakes is $809 million.

Artisan Partners Limited Partnership released its fourth-quarter 2020 investor letter and mentioned Zscaler, Inc. (NASDAQ: ZS) and other stocks in it. Here is what the firm has to say about ZS:

“We also exited our investment in Zscaler. Zscaler provides cloudbased Internet security solutions. Cybersecurity remains a top concern for businesses and governments alike as cyberattacks can have devastating financial and reputational consequences. Furthermore, managing the security needs of legacy on-premise applications, a growing number of cloud-based applications (Office 365, Salesforce, etc.) and a remote workforce make operating IT infrastructures increasingly complex. Zscaler’s scalable, cloud-based security platform is a more secure and efficient way to connect users and applications, which eliminates the need for several layers of security (firewalls, VPNs, etc.) developed and built over the last couple of decades. While the pandemic crisis is likely disrupting some areas of Zscaler’s new sales funnel, the company is particularly well-suited to scale and accelerate our market share-gain thesis. Ninety percent of employees are remotely connecting to the enterprise IT network in today’s inverted world, as opposed to prior solutions which are geared to support 10%-20% of workers connecting remotely with the rest connecting from within the walls of a corporate network. Many employees have used traditional VPN connections to log into their networks remotely, but Zscaler’s platform offers a more secure connection without exposing an entire internal network, is easier to configure and is less costly to operate at scale. While the trend toward connecting remote devices over the Internet backbone remains firmly in motion, the stock appreciated over 300% in 2020, quickly outgrowing our small-cap market cap mandate, and we ended our successful campaign.”

6. Cloudflare, Inc. (NYSE: NET)

Number of Hedge Fund Holders: 45

Cloudflare, Inc. (NYSE: NET) is an American website security company that specializes in content delivery and internet security. NET ranks sixth on our list of the best cybersecurity stocks to buy now. The operations include the transference of data from central servers to servers close to the end-user. The company’s operations support nearly all the industries, including gaming, e-commerce, technology, entertainment, as well as local and state-level governments.

The first-quarter revenue of Cloudflare, Inc. (NYSE: NET) presented a 51% year-over-year growth at $138.1 million, beating the market consensus by $7.09 million. The EPS of -$0.03 met the estimates. The company reported over 4 million customers in the first quarter and 41% of the company’s revenue was generated from outside the U.S. For Q2 FY21, Cloudflare, Inc. (NYSE: NET) expects the revenue to reach $145.5 to $146.5 million.

Recently, two investment banks, Argus and KGI Securities initiated coverage of Cloudflare, Inc. (NYSE: NET) with a ‘Buy’ and an ‘Outperform’ rating, respectively.

As of Q1 2021, 45 hedge funds tracked by Insider Monkey have positions in Cloudflare, Inc. (NYSE: NET), worth $792.4 million. Alkeon Capital Management is the company’s leading shareholder, with shares worth $117.6 million.

Like CrowdStrike Holdings, Inc. (NASDAQ: CRWD), Cisco Systems, Inc. (NASDAQ: CSCO), Dynatrace, Inc. (NYSE: DT), Okta, Inc (NASDAQ: OKTA), Palo Alto Networks, Inc. (NYSE: PANW), and Zscaler, Inc. (NASDAQ: ZS), Cloudflare, Inc. (NYSE: NET) is one of the best cybersecurity stocks to invest in.

Alger Mid Cap Focus Fund published its Q4 2020 investor letter and mentioned Cloudflare, Inc. (NYSE: NET) in it. Here is what the firm has to say about NET:

“Cloudflare. Inc. provides a broad range of network services to businesses of all sizes across the world. Cloudflare’s intelligent global network spans more than 200 cities in over 100 countries. It offers network security, performance and reliability to a growing portion of global web traffic. Today. over 15% of global internet requests go through Cloudflare. Cloudflare’s serverless network design allows this global network to be a key component layer as new developments for edge cornputing. 5G and Internet of Things increase the importance of secure. reliable edge networks. Cloudflare stock outperformed in the fourth quarter following the announcement of Cloudflare One, a cloud-bas. network-as-a-service platform designed to replace the traditional enterprise network infrastructure. The Cloudflare One solution merges existing Cloudflare access and security solutions along with new enterprise-specific features into a unified Zero Trust network that can be managed through a single “pane of glass.” or display screen. With the rapid shift to remote work caused by the pandemic, this product increases Cloudflare’s potential for winning business from enterprise customers seeking to adapt to this new business environment.

While Cloudflare One adoption is still early. Cloudflare has already started to demonstrate an improved ability to sell to large customers. When discussing its third quarter results. Cloudflare said that it is continuing to sign up larger enterprise customers. including its first client to generate more than $10 million in annual recurring revenue. Cloudflare has just started to better monetize its more than 100.000 paying customer base. which along with continued product innovation, gives the company strong growth potential.”

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Disclosure. None. 15 Best Cybersecurity Stocks to Buy Now was originally published on Insider Monkey.

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