You can’t go a half a page on the internet without hearing something about the Democratic National Convention. Michelle Obama killed it with her moving speech, Bernie Sanders finally reluctantly rolled over and Elizabeth Warren…I forget. The big story heading into the convention was the newly leaked emails that led to Debbie Wasserman Schultz getting a job with the Clinton campaign, I mean, resigning her position as Chairwomen of the DNC.
I can tell you, with 100% confidence that there will certainly be more spending on cyber security in the coming months. You can only leak so many embarrassing, incriminating, and despicable emails before somebody’s assistant secretary’s secretary’s assistant gets seriously reprimanded. Cyber security stocks have caught fire since bottoming out in mid-May.
The easiest way to partake in the boom is to buy the Purefunds Cyber Security ETF (HACK) with the aptly named ticker HACK. The ETF has 35 holdings, spreading your risk across multiple companies. That’s great for those of you that want to gain exposure to the industry without having to stay on top of each individual company. But if you want to be more specific, you can lean on the Zacks Rank to find individual names in the industry that analysts are bullish on. That way you can avoid Zacks Rank #5 (Strong Sell) stocks like Palo Alto Networks (PANW) when you’re investing.
Aside from getting Hillary to change her password from DIEMONICADIE1998 to something harder to guess, maybe we should look at SecureWorks (SCWX) products. The company offers intelligence-driven info security focused on protecting from cyber-attacks. They have an integrated suite of solutions that include managed security, threat intelligence, risk consulting as well as incident response. SCWX is a Zacks Rank #2 (Buy) right now.
With the same rank, ProofPoint (PFPT) is a leading security-as-a-service provider that focuses on cloud-based solutions for threat protection, archiving and secure communications. Here you’ve got two hot spaces in one, the cloud and cyber security. They are coming off a big beat last quarter, with the company losing 39 cents versus estimates calling for a 61 cent loss.
Science Applications (SAIC) may be my favorite pick here as it helps with IT solutions for federal, state and local government. The company just announced an $86 million task order from the US Air Force to provide technical, analytical, operational, and planning subject matter expertise. They’re basically going to help them set up shop properly ahead of time, so their new systems aren’t hacked. Check out the Price and Consensus Chart here though. Huge growth year over year while our Zacks Consensus Estimates have continued to rise as analysts have revised their numbers to the upside.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
PALO ALTO NETWK (PANW): Free Stock Analysis Report
PURFDS-ISE CYBR (HACK): ETF Research Reports
SCIENCE APP INT (SAIC): Free Stock Analysis Report
PROOFPOINT INC (PFPT): Free Stock Analysis Report
SECUREWORKS CP (SCWX): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research