With technological advancements driving businesses and customers online, AI and cybersecurity seem to have become a necessity. Additionally, the remote working trend due to the COVID-19 pandemic has boosted demand for cybersecurity.
AI in particular promises to change cybersecurity in the coming years by possibly enhancing both cyber defense and crime.
Is AI Influencing Cybersecurity?
In today’s time, almost everything is just a click away, be it clothes, groceries, investment in stocks, or just catching up with friends. However, as easy as it sounds, it has its own share of security threat. This has driven businesses to deploy cyber AI to not only protect themselves but also their customers.
In fact, cybersecurity has been a concern since the birth of Internet. And as technological evolution continues, the risks keep rising. In 2014, Yahoo! encountered a cyberattack affecting 500 million user accounts and 200 million usernames sold. This holds the record of being the largest cyberattack on a single company to date.
Now, what role does AI play in cybersecurity? AI can identify and prevent cyberattacks.In fact, AI ensures minimum human involvement in cybersecurity affairs, reducing the scope for errors. AI-based websites can detect any sort of unauthorized entry, making it difficult for hackers to get access.
However, just identifying the threat cannot save a website from cyber attackers. AI can now help prevent a cyberattack by thinking the way a hacker does to break a security code and gain entry to the target website. Hence, before the hacker identifies a weaker point of attack, AI can assess the situation and make the necessary changes.
Additionally, AI doesn’t require any break because it is programmed to deal with high-risk tasks without any concern. Furthermore, AI has undergoing rapid change and progress in recent years. It can now not only offer mere technical assistance to cybersecurity experts but also track down cyber security breach and inform appointed personals to take apt measures to rectify the same in no time.
The growth of AI in cybersecurity has been commendable in recent years with massive digitalization across the globe.Further, the coronavirus pandemic has forced employers to initiate work-from-home practices, driving adoption of IoT and the number of connected devices.
Hence, rising instances of cyberattacks, growing concerns of data transfer and vulnerability of wireless networks to attacks on data integrity have expanded the scope of AI in cybersecurity. Annual spending on vulnerability management activities increased to $1.4 million in 2019, highlighting an increase of an average of $282,750 from 2018.
5 Stocks to Watch Out For
Per a Capgemini Research Institute study, one in five cybersecurity firms were employing AI before 2019 but the adoption is likely to skyrocket by the end of 2020. In fact, 63% of the firms are planning to deploy AI in their solutions.
Per MarketsAndMarkets research, the global AI in cybersecurity market is projected to reach $38.2 billion by 2026 from $8.8 billion in 2019, at the highest CAGR of 23.3%. In fact, research suggests that the market is estimated to be valued at $12 billion by the end of 2020.
Given the immense scope, it is prudent to invest in AI-drivencybersecurity stocks. We have,thus, shortlisted four such stocks that are poised to grow.
CrowdStrike Holdings, Inc. CRWD provides cloud-native endpoint protection software. The Falcon platform automatically investigates threats and takes the guesswork out of threat analysis. The company has an expected earnings growth rate of 94.4% for the current quarter against the Zacks Internet - Software industry’s projected decline of more than 100%.
The Zacks Consensus Estimate for its current-year earnings has climbed 50% over the past 60 days. CrowdStrike holds a Zacks Rank #2(Buy).You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Fortinet, Inc. FTNT provides security solutions to all parts of IT infrastructure. The company’s AI-based product, FortiWeb, is a web application firewall that uses machine learning and two layers of statistical probabilities to accurately detect threats.
The company has an expected earnings growth rate of 12.6% for the current year against the Zacks Security industry’s estimated decline of 15.3%. The Zacks Consensus Estimate for its current-year earnings has moved 6.1% up over the past 60 days. Fortinet holds a Zacks Rank #2.
Palo Alto Networks, Inc. PANW offers firewalls and cloud security for threat detection and endpoint protection. The company that belongs to the Zacks Security industry has an expected earnings growth rate of 15.2% for the next quarter. The Zacks Consensus Estimate for its current-year earnings has moved 6.5% up over the past 60 days. Palo Alto Networks carries a Zacks Rank #3 (Hold).
Check Point Software Technologies Ltd. CHKP provides computer and network security solutions to governments and enterprises. Its IntelliStore provides customizable threat intelligence, letting companies and organizations choose real-time threat intelligence sources that fit their needs.
The company has an expected earnings growth rate of 3.4% for the current year against the Zacks Security industry’s estimated decline of 15.3%. The Zacks Consensus Estimate for its next-year earnings has moved 0.2% up over the past 60 days. Check Point Software holds a Zacks Rank #3.
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Check Point Software Technologies Ltd. (CHKP) : Free Stock Analysis Report
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