The increasing trend of cyberattacks all over the world makes cybersecurity businesses – and cybersecurity stocks – potentially lucrative. Keep reading to learn about seven of the most promising cybersecurity stocks for 2020 in today’s article.
Best Cybersecurity Stocks to Buy Now: 7 Best Buys for Your Retirement Portfolio in 2020
1. Cisco Systems, Inc. (CSCO)
Of all our top cybersecurity stocks in our list, Cisco has the largest market capitalization at more than $200 billion.
While not a 100% cybersecurity company since it offers other IT products and services besides cybersecurity, its cybersecurity future is bright. Cisco’s diverse IT products and services portfolio gives it a huge advantage over purely cybersecurity companies.
Aside from its financial stability, there are two reasons for the bullish sentiment on this stock.
- One of them is its planned acquisition of an Australian-based network device manufacturing company Exablaze.
- By acquiring Exablaze’s industry-leading devices and apps, Cisco can expand its high-frequency trade (HFT) and financial customer base. Doing so may also help further raise the bar of Cisco’s Internet-based network products and services.
- Another reason for the bullish sentiment on Cisco is its Silicone One chip, which it unveiled in December 2019. This chip, according to Cisco, is already being used by mega-IT companies like Facebook and Microsoft.
- The chip’s ability to help enterprises experience quantum improvements in data management makes it an important growth catalyst for Cisco. This, together with the Exablaze acquisition, may help push the price of Cisco’s stocks to new heights in 2020.
2. Palo Alto Networks, Inc. (PANW)
Palo Alto focuses on cybersecurity services, like firewalls, and does business in over 150 countries.
Palo Alto had a great year in 2019. Many analysts are optimistic it could perform just as well, if not better, in 2020.
Such optimism is supported by Palo Alto’s recent tie-ups and acquisitions in the last few years:
- One of these developments is a deal to acquire Aporeto, Inc, a machine identity micro-segmentation firm. The planned purchase will help the company establish itself in the micro-segmentation industry and gain more customers all over the world.
- Another important development in the company is the launch of its new cybersecurity platform, Prisma Cloud. This new platform, which combines various technologies from its acquisitions, makes it much easier to access all of their services.
These were responsible for its growth in the last few years, which is expected to continue in the near future. By entering a new IT segment and launching a new cybersecurity product, 2020 will likely be another banner year.
3. Fortinet, Inc. (FTNT)
Fortinet focuses on the cybersecurity niche of the IT industry, providing software, services, and equipment. It’s one of the world’s top cybersecurity firms because it serves both retail and corporate accounts with a wide variety of products and services.
There are two reasons why Fortinet has become one of the world’s top cybersecurity stocks in the last 20 years:
- Groundbreaking software products
- Shrewd company acquisitions and partnerships
Fortinet’s collaboration with Google Cloud can help the company establish an even stronger reputation as a cybersecurity provider. Fortinet will enhance Google Cloud’s cybersecurity to help the latter expand its customer base.
Another reason for optimism on this company is its overtaking Cisco in terms of the number of SD-WAN clients. In particular, Fortinet’s SD-WAN customers have exceeded 21,000 already.
4. Check Point Software Technologies Ltd. (CHKP)
This NASDAQ-listed Israeli tech company provides software and hardware cybersecurity products. Its annual revenue of more than $1 billion makes CHKP one of the most promising cybersecurity stocks for 2020.
Product launches and company acquisitions have fueled Check Point’s excellent performance in the last several years. As the cybersecurity market continues to grow rapidly, its recent product launches and company acquisitions put it in a great place to ride the wave.
One of its most important acquisitions is that of Protego, a leading serverless cybersecurity company. As a result of this acquisition, Check Point became the first cybersecurity company to combine two crucial areas of cybersecurity in just one solution:
- Cloud workload protection (CWPP)
- Security Posture Management (CSPM)
Acquisitions like these have helped CHKP come out with top-notch cybersecurity solutions and services, which continues to fuel its growth. Hence, the optimism on this cybersecurity stock for 2020.
5. Proofpoint, Inc. (PFPT)
The company focuses on providing cybersecurity services such as:
- Preventing loss of outbound data
- Securing inbound emails
- Email encryption and archiving
Proof of the company’s excellent cybersecurity products and services is in the multiple industry awards it won in 2019. Also, its strong ties with business clients can help it continue riding the ongoing cybersecurity growth wave in 2020.
To ensure its continuous growth, Proofpoint has been on acquisition mode lately. One of its important acquisitions was that of ObserveIT, which will help further strengthen its cybersecurity products in key areas.
6. CyberArk Software Ltd. (CYBR)
CYBR focuses on the following niches:
- Financial services
- National governments
Its diverse line of cybersecurity solutions and services include DevOps, endpoint, on-site, and cloud security. Also, its leadership position in the Privileged Access Management cybersecurity segment makes it one of the top cybersecurity stocks for 2020.
Two recent accomplishments give investors reasonable expectations that the CYBR will perform well in 2020.
- One is making important changes to its Privileged Access Security Solutions via its Global Privileged Access Security. As a result, analysts expect this to provide more business opportunities throughout the company’s partner network.
- Another significant accomplishment is the recent acquisition of its Amazon Web Services (AWS) Security Competency status. Because of this, CyberArk’s Privileged Access Security Solutions are widely accepted as legitimate security risk minimization tools.
7. FireEye, Inc. (FEYE)
Based in California, this 15-year old company focuses on providing cybersecurity hardware and software. In particular, their products and services help clients analyze their information technology-related risks and protect themselves against malicious software.
FEYE is one of the top cybersecurity stocks today because of its key acquisitions and partnerships, products, and services.
One of its most important acquisitions a couple of years back was that of Mandiant. As a result of this acquisition, FEYE was able to give its clients the ability to catch security breaches, helping boost FEYE’s sales.
One of its key products and services is the cloud version of FireEye Network Security, Forensics, and Detection On-Demand. Launched in 2019 on Amazon Web Services, it can help increase FEYE’s revenues in the foreseeable future.
Another key service is its cyber-physical threat intelligence subscription, which covers a wide area of cybersecurity, including:
- Industrial control systems
- Internet of Things
- Operational technology
- Practical and workable analysis of cyber-physical system threats
Coupled with planned new products and services launches, investors can reasonably expect its stock to perform well in 2020.
Make no mistake about it, cyberattacks all over the world will continue to increase over the long haul. However, this means continuous growth in the cybersecurity industry, and the prices of cybersecurity stocks will likely continue to rise, too.
This is why cybersecurity stocks can provide retirement investment portfolios more diversification and potentially excellent returns in 2020.
What’s your favorite cybersecurity stock and why? Let us know in the comments section below!