Best Cybersecurity Stocks in 2018
Facebook, Inc. (NASDAQ:FB) and its Cambridge Analytica scandal have made social media users cognizant of a pressing need that had so far gone unheeded. That is, a need for stronger cybersecurity. While users get busy hunting for the best cyber protection tools for their social media, now may be a good time for investors to review what could turn out to be the best cybersecurity stocks in 2018 as demand for cyber protection grows.
In case you didn’t hear, Facebook got embroiled in a major controversy last week. It all happened due to one mini loophole in the system.
Facebook unwittingly exposed the private data of 50 million users to political consulting firm Cambridge Analytica during the 2016 U.S. presidential elections. Cambridge Analytica allegedly sold the data to people involved in the Trump campaign. It is believed that the data was used to manipulate public opinion and may have allegedly helped swing votes in Trump’s favor.
While the nature of this privacy breach is such that only the social media company in question may be held responsible for it, users can no longer turn a blind eye to the fact that without taking personal responsibility to set up stronger cyber firewalls, we are leaving ourselves vulnerable to cyber intrusions in one form or the other.
Although there’s a demand for cybersecurity at homes, our workplaces need it more because of the shared nature of the network. Businesses are now particularly turning wary of their employees using social media at work.
So, here are three top cybersecurity companies that have built products geared for social media protection for both individual and enterprise clients. Coupled with their other product offerings, these companies make for some of the best cybersecurity investments in 2018.
Cybersecurity Stocks List
|Company||Ticker||Why Now Is the Best Time to Consider It|
|Symantec Corporation||NASDAQ:SYMC||Owner of the most ubiquitous cybersecurity software. Selling at year-to-date lows.|
|FireEye Inc||NASDAQ:FEYE||Rumored to be a possible acquisition target due to aggressive cost-cutting and improving financials.|
|Proofpoint Inc||NASDAQ:PFPT||Has been beating revenue and earnings targets lately. Is expanding aggressively on the back of acquisitions.|
1. Symantec Stock
Have you heard of “Norton AntiVirus?” Of course, you have! The orange ring enclosing a black check mark is possibly the most well-recognized symbol in the cybersecurity world. And Symantec Corporation (NASDAQ:SYMC) owns it.
Norton is a full-blown cybersecurity powerhouse that protects you across all platforms—web and mobile. One of its new safety features, which was added after Symantec’s acquisition of LifeLock Inc. last year, is becoming a popular selling point. This new feature protects against identity frauds. Mind you, most identity frauds are perpetrated on social media today.
Symantec’s product offering is not limited to Norton, of course. It has an arsenal of cybersecurity products catering to individual end users as well as big and small enterprises.
Also, not only does Symantec own what’s ostensibly the most popular cyber protection software in the world, it is also a dividend-paying stock. Can it get any better than this? I doubt it.
But for some reason, Wall Street is not too happy with SYMC stock. Recent analyst downgrades have weighed down heavily on its performance. It’s now selling at a year-to-date low, which is why I stress that now is the best time to take a second look at this top cybersecurity stock.
Chart courtesy of TradingView.com
2. FireEye Stock
Next up is FireEye Inc (NASDAQ:FEYE), which is a much smaller cybersecurity firm than others on the list but probably just as potent as its bigger counterparts. After all, why else would heavyweights like Cisco Systems, Inc. (NASDAQ:CSCO) and Microsoft Corporation (NASDAQ:MSFT) be looking to buy it?
Yes, rumor has it that FireEye is one of the most sought-after acquisition targets in the cyber world right now. Symantec, too, is its potential suitor.
This growing interest in FireEye is owed to its CEO, Kevin Mandia, who is being applauded in the industry for his fruitful turnaround efforts. Mandia has managed to get this losing business back on the track. Since he took over in 2016, the company’s sales have improved and its losses contained.
Under Mandia, who happens to be a U.S. Army veteran, FireEye has aggressively cut back on costs and rolled out cheaper software solutions in a bid to reach more customers.
For protection against social media-related threats, in particular, FireEye offers a sophisticated product. FireEye’s “Threat Analytics Platform” (TAP) fully integrates ZeroFOX’s social media protection tools. ZeroFOX is a privately held cybersecurity firm that is fully dedicated to providing solutions for social media cyber protection.
The market is beginning to see value in the company, and the rumors of a possible acquisition have added a further boost to the stock price. Before the FEYE stock price flies out of our reach, it’s best to add this cybersecurity stock to our watchlists.
Chart courtesy of TradingView.com
3. Proofpoint stock
A relatively lesser-known company, Proofpoint Inc (NASDAQ:PFPT), is likewise one great cybersecurity stock you need to be watching right now. Proofpoint stock is on a roll as it smashes Wall Street’s earnings and revenue estimates one quarter after another.
On top of that, the company has been on a shopping spree lately. It has announced, not one or two, but three acquisitions in the past six months.
In addition to offering a wide array of products, Proofpoint has likewise created a cybersecurity suite geared specifically towards social media protection.
The stock has become a Wall Street darling of late, as obvious from its year-to-date performance, with the stock making new highs each passing day. Needless to say, PFPT stock is already turning out to be one of the best cybersecurity stocks in 2018.
Chart courtesy of TradingView.com
The Facebook controversy has raised the bar for intensive data security. Social media users (which include pretty much half the world population now) are recognizing the importance of privacy on social platforms. The crux of the matter is that we can no longer leave our security in the hands of the profit-seeking corporations who, although promise to not sell our data, make us sign a “terms and conditions” agreement that is subject to change at their discretion.
Prior to the Facebook scandal, worse cases of privacy breach have likewise come to light like the Equifax Inc. (NYSE:EFX) hack, the purported Russian hacking of the U.S. voting system, and plenty of “cryptojacking” incidents, which have all raised the demand for cybersecurity.
It’s a no-brainer that top cybersecurity companies will see robust demand for their products in the days to come. What we have presented to our readers today are just some of the best cybersecurity stocks to consider in 2018.