5 Best CyberSecurity Stocks to Buy NOW | Summary and Q&A

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January 17, 2020
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Let's Talk Money! with Joseph Hogue, CFA
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5 Best CyberSecurity Stocks to Buy NOW

TL;DR

Cybersecurity stocks are increasingly important investments due to the rise in cybercrime, state-sponsored cyberattacks, and the lack of international response protocols. Here are the top five stocks to watch in the cybersecurity market.

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Key Insights

  • โ“ Cybersecurity companies have experienced significant sales growth, outperforming the overall market.
  • ๐Ÿ‘ถ State-sponsored cyberattacks pose a new threat, with smaller and larger countries utilizing cyber warfare to cause chaos.
  • ๐Ÿ‘€ Zscaler, CrowdStrike, Fortinet, Palo Alto Networks, and FireEye are five top cybersecurity stocks to watch.
  • โ†ฉ๏ธ Cybersecurity ETFs provide diversification, but individual stocks offer potential for greater returns.
  • ๐Ÿ˜ฎ Investing in cybersecurity stocks is crucial due to the rising demand for protection against cybercrime and state-sponsored cyberattacks.

Transcript

I've got two reasons why cybersecurity stocks could be the best investments of the decade and one just dropped a dozen warheads on a US military base in this video I'll reveal why investing in cyber security needs to be a part of your portfolio and the five best stocks to watch we're talking cyber security stocks to buy today on let's talk money th... Read More

Questions & Answers

Q: How has the growth of cybercrime impacted the need for cybersecurity stocks?

The increase in cybercrime, with over 14.7 trillion digital records stolen since 2013, has created a demand for stronger cybersecurity measures. This provides an opportunity for cybersecurity companies to offer protection and drive sales growth.

Q: Why are state-sponsored cyberattacks a concern for governments?

State-sponsored cyberattacks have no rules of conduct, making it difficult for governments to respond. Smaller belligerent states like Iran and North Korea, as well as larger ones like China, can cause chaos indirectly without initiating a direct war.

Q: What are the top cybersecurity stocks to watch?

The top five cybersecurity stocks to watch are Zscaler, CrowdStrike, Fortinet, Palo Alto Networks, and FireEye. These stocks have shown strong sales growth, competitive advantages, and potential for profit.

Q: How do cybersecurity exchange-traded funds (ETFs) compare to individual stocks?

The two significant cybersecurity ETFs are the ETFMG Prime Cybersecurity ETF and the First Trust Nasdaq Cybersecurity ETF. Both provide good diversification and exposure to the cybersecurity theme. However, individual stocks offer the potential for higher returns and greater customization.

Summary & Key Takeaways

  • Cybersecurity companies have seen average sales growth of over 15% annually, outperforming the overall market.

  • Recent events, such as the strike on Iran's top general, highlight the importance of investing in cybersecurity stocks.

  • State-sponsored cyberattacks are becoming more prevalent, and smaller belligerent states like Iran and North Korea are using cyber warfare to cause indirect chaos.

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