Cyberattacks continue to pose a significant threat to businesses. According to a recent survey, more than 90% of IT professionals believe that the amount and intensity of security threats are increasing. Last year, ransomware attacks increased by 27% and 41% of businesses experienced malware. 57% of experts surveyed were also concerned about the security implications of widespread AI. Additionally, cyberattacks can pose a significant financial burden to businesses. For example, hotel and casino owners caesars (NASDAQ:CZR), spent $15 million last year to end cyberattacks. meanwhile, MGM (New York Stock Exchange:MGM) reported that hotels and casinos were down for more than 10 days, causing tens of millions of dollars in damage. Both in 2024 microsoft (NASDAQ:MSFT) and american bank (New York Stock Exchange:BAC) is undergoing a large-scale cyber attack.Given these issues and concerns, many people cyber security stocks We will continue to prosper. Here are his three stocks that are well-positioned to generate huge returns for long-term investors.
Cyber Ark (cyber-)
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Israel-based identity security focused cyber ark (NASDAQ:cyber-) is growing rapidly. Sales soared to his $223 million quarter-over-quarter, up 32% year-over-year. In addition, subscription revenue increased 70% year-over-year to $150.3 million, resulting in net income of $8.9 million.
Bank of America considers CyberArk a market leader in identity management. The bank believes CyberArk's 2027 free cash flow target of $375 million is conservative. We also named CYBR, which has a relatively attractive valuation, as a top choice among cybersecurity stocks.
Investors Business Daily They also give CYBR the highest overall rating of 99. This shows the company's confidence in CYBR's strong growth and positive outlook, making it one of the best cybersecurity stocks to buy.
Fortinet (FTNT)
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fortinet (NASDAQ:FTNT) is a leader in providing advanced firewalls, a type of cyber attack protection.
Bank of America recently praised Fortinet. The bank believes it will benefit from a recovery in the firewall market, which it expects to grow 15% by 2025. We also believe that FTNT's valuation is attractive. In fact, the company's price-to-earnings ratio of 1.8x is quite low for a successful IT company.
Last quarter, Fortinet's revenue increased 10% year over year to $1.4 billion. Operating profit in 2023 increased 28% to $1.2 billion.
Sentinel One(S)
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sentinel one (New York Stock Exchange:vinegar) Deliver AI-powered autonomous capabilities to prevent, detect, and respond to threats.
Like CyberArk, SentinelOne is also expanding rapidly, with revenue increasing 38% last quarter compared to the same period last year. Meanwhile, net cash used in operating activities decreased from $193.29 million in 2022 to $6.37 million last year. CEO Tomer Weingarten reported in a recent statement that enterprises are rapidly choosing SentinelOne for a variety of security needs, including endpoint, data, and cloud security.
S shares fell sharply following the company's results, as the Street was spooked by the company's lower-than-expected annual recurring revenue and slightly lower-than-expected full-year earnings outlook.
The Street was not pleased with Sentinel One's recent performance, which reported lower-than-expected annual recurring revenue (After arrival) and full-year earnings forecast. As a result, SentinelOne's stock price unfortunately fell.
However, Bank of America reported that the company's ARR was only slightly below analysts' average expectations, and the company's guidance is conservative. The bank is optimistic about SentinelOne's competitive position and path to profitability and free cash flow generation.
On the date of publication, Larry Ramer did not have (directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the author and are subject to InvestorPlace.com Publishing Guidelines.
