For immediate release
Chicago, IL – December 28, 2021 – Zacks.com announces the list of stocks featured on the Analyst Blog. Every day, Zacks Equity Research analysts discuss the latest news and events affecting stocks and financial markets. Stocks recently featured on the blog include: Fortinet, Inc. FTNT, Palo Alto Networks, Inc. PANW, Radware Ltd. RDWR, and Qualys, Inc. QLYS.
Here are the highlights from Monday’s Analyst Blog:
4 cybersecurity actions to consider in 2022
Companies providing cybersecurity solutions are benefiting from the increasing demand for IT security solutions due to an increase in the number of data breaches. The growing requirements for privileged access security at the back of digital transformation and cloud migration strategies are also driving the demand for cybersecurity solutions.
Additionally, the industry is benefiting from strong demand for cybersecurity offerings, as well as the growing need for secure networks and cloud-based applications amid the wave of online learning and remote work induced by the COVID-19 pandemic. . Industry participants like Fortinet, Palo Alto Networks, Radware Y Qualys they are benefiting from the aforementioned trends.
The pandemic and technological advancement driving cybercrime
In an attempt to contain the spread of COVID-19, most companies continue with their work-from-home policies. Also, most schools and universities around the world continue with their distance learning curriculum to ensure continuation of courses.
Amid all the outages related to the outbreak, hackers and cybercriminals are taking advantage of the pandemic-induced hype and using it to steal passwords and data.
Additionally, the ongoing digital transformation and the proliferation of connected smart devices powered by artificial intelligence (AI) and its tools such as machine learning (ML) are exposing vulnerabilities in security systems globally.
Increasing incidents of advanced AI and ML-driven security attacks or “smart attacks” have become a stumbling block for cybersecurity solution providers. As most businesses transition to the cloud, traditional dashboards are becoming insufficient to prevent and manage smart attacks.
Cybercriminals are using malicious chatbots to interact with potential victims and manipulate private information. Today’s technologies, such as firewalls and host-based security tools, are not robust enough to effectively combat threats of this type. This makes it increasingly important for more stringent and advanced security, such as identity-based application security, and a considerable amount is being spent on research and development in this area.
Great Growth Prospects for Cybersecurity Solution Providers
Although billions of dollars and data are lost to cybercrime, it has a silver lining. Cybersecurity companies can profit from data breaches as the possibilities for security-related purchases increase.
According to a report by Grand View Research, the global cybersecurity market is expected to witness a CAGR of 10.9% between 2021 and 2028 and reach $ 372 billion. Furthermore, the report indicated that market growth will be driven by factors such as the increasing sophistication of cyberattacks.
With the emergence of the most contagious variant of the coronavirus, Omicron, various parts of the world are grappling with a massive spike in infection rates, leading to strict lockdowns. Even some parts of the United States are witnessing outbreaks of Omicron variants.
Furthermore, given that it will still take several months for vaccination programs to reach a significant portion of the world’s population, these factors are likely to continue to benefit cybersecurity companies in 2022. So, let’s take a closer look at some Notable cybersecurity actions that could generate double-digit values. come back next year.
Fortinet: Provides multiple levels of security protection. Demand for Fortinet products such as firewalls, virtual private networks (VPNs), antivirus, intrusion prevention (IP), web filtering, antispam, and wide area network (WAN) acceleration has gained momentum amid the pandemic.
According to IDC, in terms of revenue, Fortinet ranks third in Unified Threat Management (UTM) and is one of the fastest growing segments in Network Security. The company’s focus on enhancing its UTM portfolio will increase its share. market and will maintain the leadership position.
Additionally, the increasing adoption of software-defined wide area network (SD-WAN) solutions is likely to be a key catalyst for Fortinet in the long term. The acquisitions of AccelOps, Meru Networks, Coyote Point, XDN, ZoneFox and Bradford Networks will drive long-term growth.
Fortinet’s huge customer base of more than 450,000 helps you sell products within your installed user base. It is currently focusing on selling more subscription-based services, which will generate stable revenue and also strengthen its margins.
Fortinet’s strong balance sheet with ample liquidity and no debt is very impressive, which, in turn, will support business growth.
The stock carries a Zacks Rank # 3 (Hold), currently. You can see the full list of Zacks # 1 current rank stocks (strong buy) here.
The consensus mark for Fortinet earnings in 2022 has been revised up to $ 4.64 per share from $ 4.50 in the past 60 days. The long-term expected earnings growth rate is set at 15%. FTNT shares have rallied 135% year-to-date (YTD), outpacing Zacks Security’s 48% market rise.
Palo Alto Networks: This Zacks Rank # 3 company provides network security solutions to businesses, service providers, and government entities around the world. Palo Alto Networks has benefited from continued agreements and increased adoption of the company’s next-generation security platforms, attributed to the increased remote work environment and the need for stronger security.
Strong demand for form factor hardware products, particularly the recently launched ML technology models that ensure zero trust network security for organizations, is expected to have contributed to Palo Alto Networks’ quarterly performance.
The increasing traction on the Strata, Prisma and Cortex offerings is acting like a tailwind. The Bridgecrew acquisition earlier this year has enhanced the capabilities of the Prisma and Cortex products, helping Palo Alto Networks attract more customers.
The consensus mark for Palo Alto Networks tax earnings in 2022 has not changed at $ 7.24 per share for the past 30 days. The long-term expected profit rate is set at 29.3%. PANW’s shares have risen 58.1% to date.
Radware: The company develops, manufactures and markets products that manage and direct Internet traffic between network resources to allow continuous access to websites and other services, applications and content based on the Internet protocol.
Radware is gaining traction on stellar software growth, supported by a strong rebound in public cloud and security offerings. Additionally, you are benefiting from the growing demand for consistent application security in multi-cloud environments, which is contributing to revenue growth.
This Zacks Rank # 3 stock has appreciated 38.1% to date. The consensus mark for Radware’s earnings in 2022 has been revised 4.2% up to 99 cents a share in the past 30 days.
Ratings: This Zacks Rank # 3 company offers cloud security and compliance solutions that enable organizations to identify security risks to their information technology infrastructures, helping to protect their IT systems and applications from cyberattacks.
Qualys is benefiting from growing demand for network and security products amid the coronavirus crisis, as a massive global workforce is working remotely. Accelerated digital transformations of organizations are also driving demand for the enterprise’s cloud-based security solutions.
The Zacks Consensus Estimate for Qualys 2022 earnings has moved 5.6% north to $ 3.41 a share over the past 60 days. Qualys shares are up 14.4% to date.
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5 actions configured to duplicate
Each was selected by a Zacks expert as the # 1 favorite stock to win + 100% or more in 2021. Previous recommendations have skyrocketed + 143.0%, + 175.9%, + 498.3%, and + 673.0%.
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