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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 - Free Report) 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 - Free Report) 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. 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 - Free Report) 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. 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.
Zacks Names “Single Best Pick to Double”
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
Image: Bigstock
Should You Buy the Cybersecurity Stocks in 2021?
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 - Free Report) 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 - Free Report) 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. 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 - Free Report) 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. 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.
Zacks Names “Single Best Pick to Double”
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>