(0:30) - The Booming Cyber Security Market: Everything You Need To Know
(4:30) - What Are The Best Way’s To Get Exposure?
(8:10) - Why Is CrowdStrike So Popular With Investors?
(14:00) - Small Cap Stock Plays In Cyber Security
(18:20) - Should Investors Wait For A Pullback In The Market?
(23:00) - Episode Roundup: BUG, CIBR, CRWD, FEYE, ZS, QLYS, MCFE
Welcome to Episode #255 of the Zacks Market Edge Podcast.
Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life.
This week, Tracey is joined by Zacks Associate Stock Strategist, Dan Laboe, to talk about the cybersecurity stocks.
Cybersecurity has taken center stage again in 2021 after the US government, in Dec 2020, revealed a major hack of various government agencies along with a hack of some private companies.
Analysts expect the industry to grow between 10% and 12% over the next 6 years.
The industry was hotter than the NASDAQ in 2020, with many stocks soaring.
Should investors still get in to start 2021?
5 Cybersecurity Stocks to Watch Right Now
1. CrowdStrike Holdings CRWD is the darling of the cybersecurity stocks. Shares were up 287% over the last year but it now trades at the nosebleed levels. It has a forward P/E of 1061. But sales are expected to jump 78% in 2021 and another 40% in 2022. Is it too hot to handle?
2. Zscaler, Inc. ZS is another big cap company that is also hot. It reported first quarter fiscal 2021 revenue growth of 52% in Dec 2020. Shares are up 258% in the last year but it remains expensive on a P/E basis as well, with a forward P/E of 536. Is it worth the price?
3. FireEye, Inc. FEYE was hacked in the big government hack in Dec 2020 yet the shares have surged 66% in the last month. It’s trading with a forward P/E of 66. Should it be on your watch list?
4. Qualys, Inc. QLYS is a $4.8 billion market cap provider of cloud-based security and compliance solutions. In the third quarter of 2020, revenue grew 13%. Shares are up 46% in the last year and now trade with a forward P/E of 40.8. Is this a hidden gem?
5. McAfee Corp. MCFE only recently went IPO, in Oct 2020 and has a market cap of $8 billion. It specializes in cybercrime, especially for consumers. In the third quarter of 2020, consumer revenue jumped 23%. It’s the cheapest of the bunch, with a forward P/E of just 12.7. And it pays a dividend, yielding 2%. Is it a value alternative?
What else should you know about the cybersecurity stocks?
Listen to this week’s podcast to find out.
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Qualys, Inc. (QLYS) : Free Stock Analysis Report
FireEye, Inc. (FEYE) : Free Stock Analysis Report
Zscaler, Inc. (ZS) : Free Stock Analysis Report
CROWDSTRIKE HLD (CRWD) : Free Stock Analysis Report
McAfee Corp. (MCFE) : Free Stock Analysis Report
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