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The Best Cybersecurity Stocks to Buy for 2020

Hassan Maishera - December 27, 2019

best cybersecurity stocks

The cybersecurity sector could be positioned for long-term success. Cybersecurity stocks will continue to grow in value as societies become increasingly connected. These companies are laying the groundwork for our digital future.

The cybersecurity sector will not only grow but will experience progression over the coming years. Buying these underrated cybersecurity stocks now could pay off big in a few years.

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Best Cybersecurity Stocks to Buy Today

Cybersecurity is one of the hottest industries in the tech sector. It’s already up big for the year, but that may only be the tip of the iceberg. This industry is primed for massive growth in the coming years.

Cybersecurity has become an essential part of our lives. Businesses all over the world are moving most of their operations online. This has created a massive demand for cybersecurity. Thus, making cybersecurity stocks of high value to investors.

2019 has been an astonishing year for the stock market, and cybersecurity stocks also recorded massive gains. Heading into 2020, it is tough for investors to determine the best cybersecurity stocks to buy now. Here, we have put together a few shares in that sector that we believe could perform well over the coming year.

Cybersecurity Stocks: Our Best Picks

The cybersecurity industry grew significantly over the past few years, and it could continue in that trend. However, with so many stocks in the cybersecurity industry, it is tough to decide which ones to buy. Thus, we put together a few cybersecurity stocks we believe could perform well in 2020.

Fortinet Inc. (FTNT)

Fortinet is a California-based multinational corporation. The company develops and markets cybersecurity software, appliances, and services. Its major focuses are anti-virus, firewalls, endpoint security, and intrusion prevention. It has a wide range of products and solutions available to both retailers and institutions. Thus, making it one of the most significant cybersecurity companies in the world.

Over the past two decades, Fortinet has grown into one of the leading cybersecurity stocks. Innovative software engineering and astute acquisitions helped the company record massive growth in recent years.

The firm’s partnership with Google Cloud could drive even more revenue growth in the near future. Google Cloud will use Fortinet’s services to boost its security, so it can attract more enterprise customers.

Fortinet also acquired a SOAR provider, CyberSponse, in an effort to boost its incident response business. The company has even surpassed Cisco in the number of SD-WAN customers. It hit over 21,000 customers, as businesses recognize the importance of integrated security.

These latest developments make Fortinet an attractive cybersecurity stock to consider. It could record massive gains over the coming months.

Palo Alto Networks Inc. (PANW)

Palo Alto Networks is another cybersecurity stock that could perform well over the coming years. It has had a fantastic 2019 and could be set to repeat the same feat in 2020. With operates in more than 150 countries around the world. Palo Alto Networks is a specialist in firewalls and other cybersecurity services.

Similar to Fortinet, Palo Alto Network has been able to grow over the years due to several acquisitions and partnerships. Recently, the company entered an agreement to purchase Aporeto Inc., a machine identity-based micro-segmentation firm.

The agreement would see Palo Alto Networks venture into the micro-segmentation sector. Thus, allowing them to help customers secure their applications and software at scale. The acquisition could see Palo Alto Networks gain more customers as they provide further cybersecurity services to individuals and organizations around the world.

Also, the introduction of a new version of the Prisma Cloud cybersecurity platform would help Palo Alto Networks become more productive. The platform will incorporate the technologies it obtained from its recent acquisitions. Thus, making it easier for customers around the world to access the services via the platform. Other recent acquisitions by Palo Alto Networks include Twistlock Ltd. and PureSec Ltd.

FireEye Inc. (FEYE)

FireEye is another California-based cybersecurity company. Over the past fifteen years, the company is known for manufacturing cybersecurity hardware and developing software. Their products and services help protect against malicious software. Furthermore, they analyze IT security risks.

Similar to the other leading cybersecurity companies, FireEye has been innovative in terms of acquisitions, partnerships, and the release of new products and solutions. Thus, allowing it to remain one of the best cybersecurity stocks available to investors.

In 2019, the company made available several new cloud security capabilities on Amazon Web Services. The launch of cloud versions of FireEye Network Security, Forensics, and Detection On-Demand on AWS would help boost demand for their products. Its acquisition of Mandiant a few years back allows FireEye to help clients identify a security breach that has been helpful in expanding its business.

FireEye is also offering cyber-physical threat intelligence subscriptions. The subscription covers context, data, and actionable analysis on threats to cyber-physical systems. It also covers other areas including; industrial control systems (ICS), Internet of Things (IoT), operational technology (OT), and more.

The launch of the new services and products could help FireEye record gains by 2020. Thus, enabling the stock to perform well over the coming months.

Cyberark Software Ltd (CYBR)

Cyberark is another cybersecurity company that has been amazing in the past. However, it has the potential to perform well over the coming few months. The company provides cybersecurity security to companies in the financial, energy, retail, and healthcare industries, including Fortune 500 entities. It also provides services to governments across the world.

The Massachusetts-based company provides a variety of cybersecurity services, including cloud-based, on-site, endpoint, and DevOps.  Cyberark is one of the leading firms in the Privileged Access Management market. The firm’s work in the field has helped make it one of the leading cybersecurity stocks on the market.

Over the past few months, Cyberark has made some crucial changes and improvements to its Privileged Access Security service. The launch of the Global Privileged Access Security opportunities will help boost business opportunities across the CyberArk Partner Network.

By securing its Amazon Web Services (AWS) Security Competency status, Cyberark expanded its association with Amazon. The certification recognizes CyberArk’s Privileged Access Security Solution as a legitimate means to limit security risks on AWS.

These achievements over the past few months could set the template for further gains for the company. Thus, ultimately leading to its stock achieving another excellent performance in 2020.

Check Point Software Technologies Ltd. (CHKP)

Check Point Software Technologies is an Israeli-company that is listed on NASDAQ. It is a multinational cybersecurity company that specializes in both hardware and software development. It is involved in network security, endpoint security, cloud security, mobile security, data security, and security management. With an annual revenue of over $1 billion, Check Point Software is a cybersecurity company to keep an eye on.

A series of acquisitions and product launches made Check Point Software perform well over the past few years. It could continue on that path over the coming few months as the market grows. It recently acquired Protego, a new Serverless security technology company.

With this acquisition, the company has become the first cybersecurity vendor with a consolidated security solution for cloud workload protection (CWPP) and security posture management (CSPM). Thus, Check Point would be able to provide continuous serverless security with unmatched run time protection and application hardening.

Check Point also acquired Cymplify, a startup based in Tel Aviv. With this acquisition, Check Point can provide a consolidated security solution that hardens and protects the firmware of IoT devices. Thus, making the devices secure against the most complicated attacks.

These acquisitions have enabled Check Point to roll out new products and services. Thus, broadening their customer reach and targeting new businesses and organizations. They could also be templates for further growth of the company and its stock over the coming months.

Proofpoint Inc. (PFPT)

Proofpoint Inc. is a California-based enterprise security company. Its services are focused on inbound email security, outbound data loss prevention, social media, mobile devices, digital risk, email encryption, electronic discovery, and email archiving.

Proofpoint’s acquisition of ObserveIT will see the company boost its cybersecurity services. The addition of ObserveIT’s lightweight endpoint agent technology and data risk analytics to Proofpoint’s industry-leading information classification, threat detection, and intelligence could help enterprises gain further insight into user activity regarding their sensitive information.

The company won several awards for its exceptional security services in 2019, so the industry clearly appreciates what this company is doing. The firm has a strong rapport with its business clients, so it’s in an excellent position to grow as the cybersecurity industry expands. Proofpoint is also pursuing acquisitions that could help it continue its hot streak. This is a stock worth watching in 2020.

Cisco Systems, Inc. (CSCO)

Cisco Systems, Inc. is an American multinational technology company based in California. In addition to cybersecurity services. Cisco Systems develops, produces, and sells networking hardware, telecommunications equipment, and other high-technology products and services. With billions of dollars in annual revenues, Cisco is one of the largest cybersecurity companies in the world.

2020 could be a pivotal year for Cisco Systems as the company makes strategic moves to enhance growth. The company will acquire Exablaze, an Australian-based designer and manufacturer of network devices.

The addition of Exablaze’s segment-leading ultra-low latency devices and FPGA-based applications to Cisco, financial and HFT customers will enjoy the services the company provides. The acquisition would help boost Cisco’s next-generation low latency solutions for Intent-Based Networks.

cybersecurity stocks | cisco systems
Cisco is one of the pioneers of the tech industry. Its servers are primary components in thousands of data centers across the world, and they comprise a large portion of the enterprise network grid.

Cisco is also making headway in other aspects of its businesses. The firm’s Silicon One design, a single-chip architecture, is expected to be a major growth engine for years to come. It will help enterprises better manage their data, and it’ill be used in crucial network equipment by big-name companies like Facebook and Microsoft.

The growth expected from these latest developments could see Cisco record excellent gains next year. Thus, making it most likely for its share price to surge higher over the coming months.

Importance of Cybersecurity

Cybersecurity has become an essential part of our lives, both individuals and corporations. Cybersecurity companies help protect sensitive data, personally identifiable information (PII), protected health information (PHI), personal information, intellectual property, and information. Furthermore, they help preserve governmental and industry information systems from theft and damage caused by criminals and adversaries.

As more companies and businesses go digital, cybersecurity is becoming more critical. The number of breaches and cyberattacks have risen tremendously over the past few years. Deploying antivirus software is no longer enough to secure your online information. Thus, cybersecurity companies have been rolling out new solutions and products to help individuals and enterprises cope with rising threats.

As our society becomes more technologically reliant, the importance of cybersecurity continues to increase. Thus, for investors, investing in cybersecurity companies could be a great move as their products and services gain more global adoption.

cybersecurity stocks growth chart

Growth of the Cybersecurity Sector

The cybersecurity sector has been steadily growing over the past few years. As of 2018, the cybersecurity industry was valued at $118.78 billion. The valuation is set to increase to over $260 billion over the next four years.

Cybersecurity trends are focusing more on IoT, BYOD, AI, and machine learning. These emerging technologies are becoming key to the daily operations of businesses and companies around the world.

The number of companies falling prey to data breaches and other cyberattacks is increasing. Thus, businesses and organizations are paying more to secure their information. As more enterprises deploy security services and purchase products, the cybersecurity sector would continue to expand.

The critical growth in the cybersecurity trend would be in enterprise solutions. Government agencies and companies are seeking better ways to protect their information. Thus, solutions targeting them will increase over the next few years.

cybersecurity stocks acquisitions

Cybersecurity Stocks: Closing Thoughts

The cybersecurity sector is growing in importance as businesses and governments move their operations online. With so many cybersecurity stocks to choose from, it is tough for investors to decide which ones to purchase. However, we believe the cybersecurity stocks in this post could head higher over the coming 12 months.

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More Cybersecurity Stocks to Buy Today

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Hassan Maishera is a cryptocurrency expert and a Stock Dork freelance contibutor.

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