|Bid||40.51 x 800|
|Ask||41.52 x 1400|
|Day's Range||41.45 - 42.23|
|52 Week Range||31.56 - 42.23|
|PE Ratio (TTM)||N/A|
|Beta (3Y Monthly)||1.02|
|Expense Ratio (net)||0.60%|
Cybersecurity stocks and the related exchange-traded funds (ETFs) are on torrid paces this year. The ETFMG Prime Cyber Security ETF (NYSEARCA:HACK), the oldest cybersecurity ETF on the market, is up nearly 24% and a confluence of factors bode well for continued upside among stocks residing in this corner of the technology sector.Earlier this month, cybersecurity stocks and ETFs like HACK surged on news that semiconductor giant Broadcom (NASDAQ:AVGO) is continuing its quest to diversify its product mix away from chips by acquiring cybersecurity purveyor Symantec (NASDAQ:SYMC).While many investors may prefer traditional, diversified technology ETFs to cybersecurity fare, there are sound fundamental reasons to consider cybersecurity ETFs for the long haul. After all, cybersecurity ETFs provide exposure to one of the truly riveting exponential growth trends on the market today.InvestorPlace - Stock Market News, Stock Advice & Trading Tips"In 2004, the global cybersecurity market was worth $3.5 billion -- and in 2017 it was expected to be worth more than $120 billion. The cybersecurity market grew by roughly 35X over 13 years entering our most recent prediction cycle," according to CyberSecurity Ventures. "Worldwide spending on information security (a subset of the broader cybersecurity market) products and services exceeded $114 billion in 2018, an increase of 12.4 percent from 2017, according to Gartner, Inc. For 2019, they forecast the market to grow to $124 billion, and $170.4 billion in 2022." * 10 Best Cryptocurrencies to Keep on Your Radar In addition to HACK, here are some other cybersecurity ETFs to consider. iShares Cybersecurity and Tech ETF (IHAK)Expense Ratio: 0.47%, or $47 annually per $10,000 investedThe iShares Cybersecurity and Tech ETF (NYSEARCA:IHAK) is just over a month old, making it the newest cybersecurity ETF, but it has a feather in its cap: it is also one of the cheapest cybersecurity ETFs on the market. This rookie fund tracks the NYSE FactSet Global Cyber Security Index and holds almost 40 stocks with Symantec being its largest holding.While IHAK is a new cybersecurity ETF, it is one with potential for patient investors and one that may just be at the right place at the right time."The unprecedented cybercriminal activity we are witnessing is generating so much cyber spending, it's become nearly impossible for analysts to accurately track," notes Cybersecurity Ventures. "We anticipate 12-15 percent year-over-year cybersecurity market growth through 2021, compared to the 8-10 percent projected by several industry analysts."At the industry level, IHACK features exposure to providers of cybersecurity hardware, software, products and services. BlueStar Israel Technology ETF (ITEQ)Expense Ratio: 0.75%The BlueStar Israel Technology ETF (NYSEARCA:ITEQ) has gained some acclaim for being an excellent way of bringing international diversity to technology investing. While ITEQ is positioned as a diversified technology fund, it is also very much a cybersecurity ETF because Israel is one of the world's leaders when it comes to cybersecurity services and software."Investments in cybersecurity firms in Israel crossed the $1 billion mark for the first time in 2018 as interest by foreign investors surged, a January report by Start-Up Nation Central, which tracks Israel's tech industry, showed," reports The Times of Israel. "Israel's cyber industry is second only to that of the US, taking 20 percent of the overall venture-backed cyber investments worldwide, according to an analysis of PitchBook and Start-Up Nation Central databases." * 7 Best of the Best Fidelity Funds to Buy ITEQ's technology focus is a difference maker. The quasi-cybersecurity ETF is up nearly 28% year-to-date, nearly double the returns of the MSCI Israel Index. First Trust Nasdaq Cybersecurity ETF (CIBR)Expense Ratio: 0.60%The First Trust Nasdaq Cybersecurity ETF (NASDAQ:CIBR) was the second cybersecurity ETF on the scene, and, today, the fund has nearly $1 billion in assets under management. CIBR, which turned four years old earlier this month, follows the Nasdaq CTA Cybersecurity Index. CIBR holds 44 stocks with a median market value of $3.26 billion, indicating the fund tilts toward smaller mid-cap fare.That said, this cybersecurity ETF is home to some large-cap technology names, including Cisco Systems (NASDAQ:CSCO) and Palo Alto Networks (NASDAQ:PANW). Five industry groups are represented in CIBR, but the fund devotes over 56% of its weight to software makers. That is a good thing due to the rapid growth expected in the cybersecurity software market.Additionally, many cybersecurity software makers are linked to cloud computing, another fast-growing tech segment. Due to the intersection of cloud computing and cybersecurity software, many of the companies operating in this sphere are appealing acquisition targets for larger, cash-rich technology companies. With software powering cybersecurity growth, CIBR remains a practical, long-term option among cybersecurity ETFs.As of this writing, Todd Shriber did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 9 Retail Stocks Goldman Sachs Says Are Ready to Rip * 7 Services Stocks to Buy for the Rest of 2019 * 6 Stocks to Buy and 1 to Sell Based on Insider Trading The post 3 Cybersecurity ETFs With Loads of Growth Potential appeared first on InvestorPlace.
Shares of cyber security companies were broadly higher in morning trading Wednesday, after Bloomberg reported that Symantec Corp. was in talks to be acquired by Broadcom Inc. . The ETFMG Prime Cyber Security ETF rose 1.7%, 50 of 54 equity components trading higher. Symantec's stock led the way with a 13.3% surge, with trading volume of 30.1 million shares more than 4-times the full-day average. Among other more-active ETF components, shares of CrowdStrike Holdings Ind. ran up 3.3%, FireEye Inc. rallied 3.2%, Cisco Systems Inc. rose 1.2% and Zscaler Inc. climbed 1.7%. The ETF has now advanced 21.1% year to date, while the S&P 500 has gained 19.3%.
Shares of Symantec Corp. rocketed 19% in premarket trading Wednesday, putting them on track to open at a 14-month high, after Bloomberg reported late Tuesday that the security software company was in advanced talks to be acquired by Broadcom Inc. . Broadcom shares slumped 3.2%. Wedbush analyst Daniel Ives said he believes if a deal is done it will be in the $26 to $28 a share range, which would be a 18% to 27% premium to Tuesday's closing price of $22.10, and which would value Symantec at $16.1 billion to $17.3 billion. "With Symantec in the midst of coming off a sudden CEO departure, soft results/guidance, and a myriad of company specific/secular headwinds we believe now would be the golden time for the company and its board to finally consider a sale of the business," Ives wrote in a note to clients. For Broadcom, Ives said the company would be doubling down on its software bets following last year's $18 billion buyout of CA Technologies, "which still remains a head scratcher to many." Symantec's stock has rallied 17% year to date and Broadcom shares have advanced 16%, while the ETFMG Prime Cyber Security ETF has run up 19% and the S&P 500 has gained 19%.
Chip-related stocks lead the broader tech sector higher following a truce in the trade war with China, which threatens to drag heavily on suppliers of semiconductors.
[Editor's note: This story was previously published in February 2019. It has since been updated and republished.]Another day, another hack, another reason to buy a cybersecurity stock. That has been my motto for the better part of the past few years, as a huge surge in digital data volume globally has been accompanied by an equally large surge in headline cyber attacks. The big one was the Equifax (NYSE:EFX) scandal back in mid-2017, but that incident is far from isolated. Everyone from Under Armour (NYSE:UAA) to Wendy's (NYSE:WEN) to Whole Foods to Uber to Yahoo and U.S. universities has dealt with a cyber attack of some sort over the past several years.Concurrent to the rampant rise in cyber attacks, demand for cybersecurity solutions has burgeoned, and cybersecurity stocks have bounced. The Prime Cybersecurity ETF (NYSEARCA:HACK) is up roughly 20% over the past year, almost double the S&P 500's return of 18%.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 S&P 500 Dividend Stocks to Buy at Least Yielding 3% The pace of these attacks will only increase as more valuable data shifts online over the next several years. As such, demand for cybersecurity solutions will continue to grow and cybersecurity stocks will continue to outperform.With that in mind, here's a list of 15 cybersecurity stocks that investors should watch over the next several years. Indeed, I think a few of them could be huge winners: Palo Alto Networks (PANW)When it comes to cybersecurity stocks, the cream of the corp is Palo Alto Networks (NYSE:PANW). "Another day, another hack, another reason to buy a cybersecurity stock" could just as easily read "another day, another hack, another reason to buy Palo Alto Networks stock." In other words, Palo Alto Networks is so big and so good at what it does that the company may as well be a substitute for the entire cybersecurity space.This dominance has manifested itself in a long and steady track record of 20%-plus revenue growth and healthy operating margin expansion, the sum of which has powered a 150% rally in PANW stock over the past five years.Recent numbers are a little weak, but analysts remain confident on the stock. Fortinet (FTNT)While Palo Alto Networks may be the cream of the corp in this industry, Fortinet Inc (NASDAQ:FTNT) isn't too far behind.Source: Dennis van Zuijlekom via FlickrThis is another really big, really strong cybersecurity company that has a strong track record of 20%-plus revenue growth and strong share price gains. Over the past five years, FTNT is up 211%.Revenue growth isn't slowing at all, implying that despite increased competition, Fortinet continues to ride secular tailwinds in cybersecurity to 20%-plus revenue growth. Thus, so long as cybersecurity tailwinds remain strong, FTNT stock should do well. * 10 Stocks to Buy That Could Be Takeover Targets Analysts are worried about valuation here and now, with the stock trading at nearly 40X forward earnings. That does seem a little rich and this stock may be due for a correction in the near future. But thereafter, long-term tailwinds should drive FTNT stock higher. Check Point (CHKP)Another cybersecurity industry titan is Check Point (NASDAQ:CHKP). And, as an industry titan, CHKP stock is a likely winner if cybersecurity tailwinds stay strong.Source: Check Point SoftwareBut, CHKP stock has struggled lately. CHKP stock is up just 14% over the past year. A lot of the recent weakness in CHKP stock has to do with anemic revenue growth. Revenue growth was just 2% last quarter, an usually low mark for a cybersecurity giant.Long story short, it looks like competition is weighing on CHKP stock. Thus, go-forward growth prospects, while strong, are muddied by competitive threats. Granted, CHKP stock sports a reasonable valuation at just a little more than 20X forward earnings. But, that low valuation runs next to low growth, so the stock really isn't a bargain.Analysts aren't in love with this stock, and the chart isn't all that great, either. Thus, while CHKP should head higher in the long run thanks to industry tailwinds, the outlook for the stock in the near- to medium-term is much less promising. FireEye (FEYE)I'd lump cybersecurity company FireEye (NASDAQ:FEYE) more into the Check Point pile than the Palo Alto Networks and Fortinet pile.Source: David via Flickr (Modified)This is a solid company with healthy industry drivers, but revenue growth isn't robust. Over the last few years, that's caught up with the stock which has fallen 60 percent over the last five years. The company is barely profitable.As such, FEYE stock doesn't look like a huge winner in the big picture. * 6 Big Dividend Stocks to Buy as Yields Plunge That being said, there is an argument to buy FEYE stock in the near- to medium-term. Ever since the start of 2016, FEYE stock has been highly cyclical. In that cycle, the stock usually bottoms when the trailing sales multiple hits 3. Right now, we are just above 3. Thus, further weakness in the stock should be expected but could turn into a medium-term buying opportunity. Proofpoint (PFPT)Proofpoint (NASDAQ:PFPT) is the nascent, hyper-growth player in the cybersecurity space. The company isn't all that big (under $6 billion market cap, versus nearly $20 billion for Palo Alto Networks). But, what this company lacks in size, it makes up for in growth. \Because of this massive growth in a rapidly expanding industry, PFPT stock has done quite well. The stock is up 200% over the past five years.Analysts think this stock heads higher. So do I. Growth rates are huge, the valuation is reasonable, and the chart looks good. Imperva (IMPV)There is a lot of noise surrounding Imperva (NASDAQ:IMPV) right now. But, I think that if you zoom out and look at the big picture, this is a cybersecurity company heading in the right direction. IMPV stock got slammed recently because of mixed quarterly numbers that included a big-cut to the full-year guide. The rationale behind the down-guide was that Imperva is transitioning to a subscription model, and that is adversely affecting revenue and profits in the near-term.Longer-term, though, this is the right move. We are entering the subscription economy era. Moreover, Imperva operates in a rapid growth area of cybersecurity (hybrid cloud), and that gives them exposure to huge tailwinds over the next several quarters. * 7 Bank Stocks to Leave in the Vault Meanwhile, the valuation on IMPV stock is reasonable at only 4.5X sales. Thus, in a big picture, I think IMPV stock is headed in the right direction. But, IMPV won't be a big winner overnight, so expect some choppiness while Imperva's financials take a near-term hit from the subscription shift. CyberArk (CYBR)Much like Proofpoint, CyberArk (NASDAQ:CYBR) is a cybersecurity company characterized by small scale but big growth.Source: Shutterstock CyberArk is even smaller than Proofpoint (just a $2 billion market cap). But, growth is really big. Last quarter, revenues rose 34% year-over-year, and deferred revenue rose by more than 40%.Also much like PFPT, CYBR stock has been a big winner due to its big growth. Over the past year, CYBR stock is up 103%.Analysts think this run will continue, albeit at a much slower rate. That seems reasonable to me. This stock is slightly more expensive than PFPT, but growing at a slower rate, so if you are searching for growth in the cybersecurity space, I'd pick PFPT over CYBR. Cisco (CSCO)One of the bigger companies on this list, Cisco (NASDAQ:CSCO), is much more than just a cybersecurity company. But, a big part of this company's turnaround narrative is centered on cybersecurity.Source: Shutterstock That part of the Cisco narrative is doing well, and is powering improved financial results. After its 30 climb this year, Cisco may be starting to level off. Moreover, laps are going to get tougher going forward, so slowing revenue growth is a risk this company is looking at it in the near- to medium-term future. * 7 Stocks to Buy for Monster Growth That being said, CSCO stock is pretty cheap at just 16X forward earnings, and the chart looks pretty good.Big picture, CSCO stock has great, upside from here. It is a low-risk, low-volatility investment with a cheap valuation. But, it also lacks big-time growth drivers to unlock huge share price appreciation in the long-term. Carbonite (CARB)Although it is one of the smaller names on this list, Carbonite (NASDAQ:CARB) has one of the better growth narratives in all of cybersecurity.Source: Shutterstock This is a company that is positioning itself as a data protection company. Considering the volume of digital data is exploding higher right now on a global scale, data protection is the right niche to dominate over the next several years.Carbonite's numbers haven't been great as of late. Revenues were down year-over-year for the last quarter, but gross margins are trending higher. Operating margins, too. Net profits are growing by a whole bunch from a small base.The valuation, meanwhile, isn't all that bad at 4X trailing sales. The stock is down more than 70% over the past year, but it has a bunch of positive momentum right now. Qualys (QLYS)The next cybersecurity stock to watch over the next several years is Qualys (NASDAQ:QLYS).Source: Shutterstock The value prop of Qualys is getting enterprise customers to sign onto their platform, consolidate their security and compliance stacks, and cut IT spend. That is a pretty promising value prop, and a lot of customers are buying into it.Last quarter, revenues at Qualys rose more than 15%. Gross margins aren't soaring higher, but operating margins are moving higher as big revenue growth is driving opex leverage. * 7 Safe Stocks to Buy for Anxious Investors From a valuation perspective, this hyper-growth cybersecurity stock looks fully valued at over 13X trailing sales. That is about as big as it gets in this industry, but Qualys isn't the biggest grower. Thus, going forward, valuation will likely weigh on share price performance. Symantec (SYMC)Of all the stocks on this list, Symantec (NASDAQ:SYMC) is the one that has been struggling the most.Source: Shutterstock SYMC stock is down more than 16% over the past year, mostly thanks to slowing revenue growth, which just turned negative. Considering competition in this space is only intensifying, it is discouraging to see revenue growth already dip into negative territory.That being said, SYMC stock is about as cheap as it gets in this sector. The stock trades at 2.5X trailing sales and 13X forward earnings. Those are pretty cheap multiples for exposure to cyber defense.If the growth trajectory for this company improves, SYMC stock could soar higher. Until then, though, SYMC stock will remain weak. There simply isn't much demand for zero-growth cyber defense stocks. Akamai (AKAM)One cybersecurity stock with a very attractive and multi-faceted growth narrative is Akamai (NASDAQ:AKAM).Source: Shutterstock The Akamai growth narrative is really quite broad. On one end, the company's fastest-growing segment is its Cloud Security solutions. Revenues in this segment are consistently growing around 25% to 35% year-over-year each quarter, and momentum is strong due to the security portfolio including new products.On the other end, Akamai provides solutions that enable the shift from linear content to internet content. This shift is only gaining momentum, and as such, Akamai's growth narrative and numbers are only getting better. * 7 High-Yield REITs to Buy (Even When the Market Tanks) Valuation is a concern for this stock. But, the fundamentals are pretty good. Thus, while I don't think AKAM stock has another 20%-plus upside in its tank over the next 12 months, I do see this stock heading higher in a multi-year window. Splunk (SPLK)Another high-growth name in this space is Splunk (NASDAQ:SPLK).Source: Web Summit Via FlickrSplunk essentially operates in the world of turning data into actionable insights. This is a good place to be. It puts Splunk at the heart of a $55 billion addressable market. Revenues currently sit around $1.3 billion on a trailing 12 month basis, so there is clearly a long runway for big growth.But, revenue growth has been consistently slowing at SPLK. The valuation, however, has not compressed. That is a worrisome combination, and likely at the heart of its 17% drop in May. With revenue growth last quarter under 40%, and the price-to-sales multiple above 10X, this stock looks unnecessarily risky here and now.Analysts have been moving to the sidelines on this name, and insiders are selling a bunch, so now might be the time to heed the warning signs. F5 Networks (FFIV)F5 Networks (NASDAQ:FFIV) has fallen upon hard times. But, that could change soon.Source: Shutterstock Over the past year, the stock is down 22% and the forward-earnings-multiple on FFIV stock remains below 20.The valuation is attractive, but it is on top of what is projected as sub-10% earnings growth over the next several years. A 20X multiple for less than 10% growth isn't all the great, especially considering the market is trading at a lower multiple (17X) for bigger growth (16.5%). * 7 Strong Buy Stocks With Over 20% Upside Perhaps that is why most analysts have a price target on the stock that is below the current price tag. I think the analysts are right on this one. Cybersecurity tailwinds are strong, but there are better cybersecurity stocks on this list with more upside potential. Zscaler (ZS)Freshly public and relatively small, Zscaler (NASDAQ:ZS) is one of the most exciting and risky cybersecurity stocks on this list.Source: Shutterstock Zscaler went public at $16-per-share in March 2018. The IPO was a huge success. ZS stock doubled in its first day of trading, closing at $33. The momentum hasn't really stopped. Today, ZS stock is around $70.The hype makes sense. Zscaler is a cloud security company with nearly 3,000 customers, a huge international presence, 50%-plus revenue growth and 80%-plus gross margins. The company is disrupting a huge, nearly $20 billion cloud and mobility market, and revenues last year were just $126 million.Thus, the long-term growth narrative supporting ZS stock is quite promising. But, this is nearly a $5 billion company that is expected to do under $200 million in sales this year, so the stock is trading at a rather huge 25X-plus sales multiple. That isn't a risk-off investment. As such, ZS is the high-risk, high-reward name in this cybersecurity bunch.As of this writing, Luke Lango was long HACK, PANW, FTNT and PFPT. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Hot Stocks Leading the Market's Blitz Higher * 7 Strong Buy Stocks With Over 20% Upside * 5 Growthy Stocks Trading Below 15X Earnings Compare Brokers The post 15 Cybersecurity Stocks to Watch as the Industry Heats Up appeared first on InvestorPlace.
Technology sector took a hit badly in yesterday's trading session on antitrust scrutiny concerns that wiped out more than $133 billion from the market value of the four technology giants.
What Can We Expect from Symantec’s Q4 Results?Revenue fall of 2.2% in the fourth quarter Cybersecurity (HACK) company Symantec (SYMC) is scheduled to announce its fiscal 2019 fourth-quarter earnings results (for the year that ended in March) on
Why Did Proofpoint Stock Fall 7.5% in After-Hours Trading?(Continued from Prior Part)Is PFPT overvalued?Proofpoint (PFPT) stock fell 7.5% in after-hours trading on April 25, 2019, despite the company’s beating Wall Street earnings and revenue
Why Did Proofpoint Stock Fall 7.5% in After-Hours Trading?Sales rose 25% YoY Shares of cybersecurity (HACK) company Proofpoint (PFPT) fell 7.5% in after-hours trading on April 25. Proofpoint managed to beat analysts’ sales and earnings estimates in
These Two Tech Stocks Lost Over 5% on April 26(Continued from Prior Part)Proofpoint sales rose 25% YoY in Q1 2019Cybersecurity (HACK) company Proofpoint (PFPT) fell over 5% on April 26 to close trading at $124.55. The stock is currently trading 65%
Will Fortinet Beat Earnings Estimates in Q1 2019?Revenue estimated at $471.8 million Cybersecurity (HACK) company Fortinet (FTNT) is scheduled to announce its first-quarter results on May 2. Analysts expect the company to post revenues of $471.8
Will FireEye Beat Wall Street Estimates for Q1 2019?Revenue growth of 5.6%Cyber security (HACK) company FireEye (FEYE) is set to announce its first-quarter earnings results on April 30. Analysts expect the company to post sales of $210.2 million in
Will Proofpoint Continue to Beat Earnings Estimates in Q1?Revenue expected to rise 22.70%High-growth cybersecurity (HACK) company Proofpoint (PFPT) is scheduled to announce its first-quarter earnings results on April 25. Analysts expect the company
How Are Cybersecurity Stocks Trading Compared to Valuations?(Continued from Prior Part)Stock returnsCybersecurity (HACK) leader Symantec (SYMC) has generated returns of -12.4% in the last 12 months. Since the start of 2019, the stock is up by 29%.
How Are Cybersecurity Stocks Trading Compared to Valuations?Stock returns Cybersecurity stocks have generated impressive returns over the last few years. The Prime Cyber Security ETF (HACK) has gained 21% this year and 77% in the last three years.
Are These Tech Stocks Overvalued after Nearing 52-Week Highs?(Continued from Prior Part)Stock returnsCybersecurity (HACK) stock Fortinet (FTNT) has generated returns of 68% in the last 12 months. The stock easily outperformed broader markets last
While winners are spread across many corners of the tech space, we have highlighted seven tech ETFs that hit all-time highs in the last trading session.
A version of this article was published in the December 2018 issue of Morningstar ETFInvestor. Download a complimentary copy of Morningstar ETFInvestor by visiting the website. Simple, compelling stories tap into our emotions, hijack our ability to think rationally, and persuade us to pursue investments that are unlikely to perform well. The South Sea Company of early 18th century England exemplifies how a well-spun narrative can cause investors to ignore facts and disrupt their ability to make sound investment decisions.
Cyber security sector-related exchange traded funds broke away from the broader market malaise on Thursday, strengthening on the CyberArk Software's (CYBR) earnings and revenue beat. On Thursday, the ETFMG Prime Cyber Security ETF (HACK) , the first exchange traded fund dedicated to the fast-growing cyber security space, increased 1.7% and the First Trust NASDAQ CEA Cybersecurity ETF (CIBR) , which also tracks companies engaged in the cybersecurity segment of the tech and industrials sectors, gained 1.8%. Fueling the gains in the cyber security-related ETFs, CyberArk Software announced record results for the fourth quarter and year ended December 2018.