While Reddit stocks may be making the flashiest headlines in the stock market this week, cybersecurity stocks could be worth watching. Namely, the cybersecurity industry received a boost while most tech stocks took a breather last month. This is because of a ransomware attack on the Colonial Pipeline company, the largest U.S. fuel pipeline operator, halting 45% of the East Coast’s supply. Subsequently, the company paid a ransom of $4.4 million to the hackers, according to CEO Joseph Blount. While this serves as a warning sign over the digital security of federal-level infrastructure, private companies are also being targeted.
Evidently, JBS (OTCMKTS: JBSAY), the world’s largest meat processing company, was hacked over the weekend. In detail, the cyberattack forced the shutdown of all its U.S. beef processing plants. For a sense of scale, the company’s U.S. facilities produce almost a quarter of American beef supplies. On top of that, JBS’s Australian slaughter operations were shut down while its largest beef plant in Canada was idled. Generally, cybercrime seems to be on the rise and hackers seem to be growing more confident. As companies and governments seek to bolster cybersecurity measures on critical infrastructure, cybersecurity stocks would stand to benefit. Because of this, I could see investors eyeing the top cybersecurity stocks in the stock market today.
Likewise, some of the biggest names in the industry have been and continue to optimize their services and expand now. Take Palantir (NYSE: PLTR) for example. The company remains a go-to for government bodies across the globe, having won a new $111 million contract with the U.S. yesterday. Elsewhere, Zscaler (NASDAQ: ZS) acquired Smokescreen Technologies, a leader in active defense and deception tech. With all this action in the industry, could one of these top cybersecurity stocks be your next big investment?Top Cybersecurity Stocks To Watch June
- CrowdStrike Holdings Inc. (NASDAQ: CRWD)
- CACI International Inc. (NYSE: CACI)
- Okta Inc. (NASDAQ: OKTA)
First up, we have one of, if not the leading name in the cybersecurity industry now, CrowdStrike Holdings Inc. In brief, the California-based company offers organizations a comprehensive array of cybersecurity services. The likes of which consist of its cloud workload, cyberattack response, threat intelligence, and endpoint security offerings. Given the current tailwinds in the cybersecurity industry, CRWD stock would make for a viable play on the industry now. On Thursday after the market close, CRWD reported better-than-expected earnings.Source: TD Ameritrade TOS
The company earned $0.10 per share, beating the anticipated $0.06 per share. They also reported revenue at $302.8 million, also higher than the estimated $291.4 million. Furthermore, the company was able to add 1,524 net new subscribers, and notably delivered record operating and free cash flow for the second consecutive quarter. CRWD stock is already looking at gains of over 120% in the past year. Could it be worth investing in right now?
Well, investment banking company Cowen (NASDAQ: COWN) appears to believe so. Specifically, it hit CRWD stock with a buy rating and a price target of $250 a share. This would imply a 13% upside from its current price of $220.58 as of Wednesday’s closing bell. According to analyst Shaun Eyal, CrowdStrike is one of the best ways for investors to bet on the cybersecurity industry now. Eyal argues that the company could see double-digit growth in the next few years thanks to its strong fundamentals.
Analyst coverage aside, the company has also been hard at work improving its cybersecurity collaborations. Just last month, CrowdStrike announced several new service integrations with Google’s (NASDAQ: GOOGL) cloud computing division, Google Cloud. Through these integrations, the duo is not only deepening their partnership but is also delivering defense-in-depth security strategies. According to CrowdStrike, joint customers between the two can now experience comprehensive workload protection and visibility at scale and across hybrid environments. With exposure to Google’s massive pool of enterprise-level clientele, would you consider CRWD stock a top buy?CACI International Inc.
CACI International Inc. is another major name in the cybersecurity world now. For some context, CACI mainly identifies as a computer and information tech company. Notably, the company provides crucial software services to numerous branches of the U.S. federal government. These include, but are not limited to the defense, homeland security, intelligence, and health care divisions. With the threat towards crucial government systems growing more apparent, CACI could be looking at busy times ahead. Similarly, it would not surprise me to see investors looking at CACI stock amidst these times.Source: TD Ameritrade TOS
For one thing, the company has not been sitting idly by. As of last week, CACI is currently working on a $373 million contract with the U.S. Special Operations Command (SOCOM). Through the current partnership, CACI will be providing SOCOM with geospatial intelligence. Simply put, the company’s seasoned intelligence experts will provide mission expertise and analytical support. Moreover, the company’s engineers will be actively maintaining and evolving SOCOM’s intelligence IT infrastructure. No doubt, this would mark another solid play by CACI as the U.S. government continues to rely on its services.
In terms of finances, CACI also reported solid figures across the board in its recent fiscal quarter posted in April. Overall, the company reported earnings of $12.61 per share on revenue of $5.72 billion for the quarter. With CACI seemingly firing on all cylinders now, will you be adding CACI stock to your portfolio?
Read MoreOkta Inc.
Following that, we will be looking at IT service management company, Okta Inc. In short, Okta primarily offers cloud software that enables secure user authentication features on apps. Through its offerings, web enterprise web developers can build and integrate identity control infrastructure across company apps, websites, and devices. Essentially, Okta’s services provide simple and secure digital access to customers and organizations alike. In terms of scale, Okta’s clientele consists of over 10,650 organizations across various industries. Some notable names include JetBlue (NASDAQ: JBLU), Nordstrom (NYSE: JWN), T-Mobile (NASDAQ: TMUS), and Twilio (NYSE: TWLO). However, despite the company’s impressive credentials, OKTA stock has mostly been trading sideways this year. Would investors be wise to buy in now?Source: TD Ameritrade TOS
If anything, Ark Investment founder Cathie Wood seems to be leaning towards a yes. Last week, Wood’s fund increased its position in Okta by 123,385 shares, doubling its current holdings. In particular, the investment firm added OKTA stock to its Ark Next Generation Internet exchange-traded fund (ETF). Seeing as Wood is buying on the dip here, this would imply there possibly being room for growth moving forward. Time will tell if this holds to be true.
On the operational front, Okta appears to be gaining momentum as well. In its first-quarter fiscal report last week, the company raked in total revenue of over $251 million. According to CEO Todd McKinnon, Okta saw “broad-based demand” for both its customer and workforce identity solutions throughout the quarter. Not to mention, the company also seems to be building its reputation in the public sector as well. Just last week, Okta revealed new collaborations with the U.S. Department of Defense and the states of Kansas and Iowa. Given all of this, would you say that OKTA stock is worth investing in now?