We are not yet prepared for cyberattacks. This includes the U.S. government, hospitals, businesses, and millions of people around the world.Recently, communication frontier communications (NASDAQ:Annual BRAs Seeking Alpha noted, the company was forced to shut down certain systems following an attack when a third party “obtained unauthorized access to portions of its information technology environment.” All of this creates a huge opportunity for multibagger leading cybersecurity stocks.
The Change Healthcare cyberattack on February 21st has forced small medical institutions to close. Also, according to the International Monetary Fund (IMF):
“The risk of extreme losses from cyber incidents is increasing. Such losses can cause financing problems for businesses and can even threaten their solvency. The scale of these extreme losses has more than quadrupled since 2017 to $2.5 billion.And the indirect losses, such as reputational damage and security upgrades, are significant.
Unfortunately, despite all the attacks over the years and the warnings to be prepared, we are still sitting ducks. All of this creates a huge opportunity for multibagger leading cybersecurity stocks.
Palo Alto Networks (Panwoo)
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After a gap from about $370 to about $260, palo alto networks (NASDAQ:Panwoo) Currently, the price is consolidating around $282. From now on, I would like to retest the $320 price first. PANW is one of the top multibagger cybersecurity stocks to buy on weakness.
Just a few weeks ago, the company lowered its full-year revenue outlook from $8.15 billion to $8.2 billion to a new range of $7.95 billion to $8 billion. The company also lowered its full-year billing forecast to a new range of $10.1 billion to $10.2 billion, from the previous estimate of $10.7 billion to $10.8 billion.
That's why PANW collapsed. But most of that bad news appears to be firmly priced in oversold stocks. Additionally, Argus analysts just reiterated their buy position on PANW with a price target of $336. The cybersecurity environment, especially as generative artificial intelligence becomes more influential.
Unfortunately, cybersecurity issues are only getting worse. This is all due to insufficient preparation for the attack. Moreover, recent geopolitical issues only heighten the threat. Considering PANW is the 800-pound gorilla of the industry, you're sure to benefit.
Fortinent (FTNT)
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You may also want to keep an eye on the top multibagger cybersecurity stocks, including: fortinet (NASDAQ:FTNT), is technically oversold at $63.69. RSI, MACD, and Williams' %R are also overextended. The last time the price was this technically oversold, it immediately rebounded from about $45 to $60. The time it took to rebound from about $56.10 to $65.68. We hope for a similar rebound this time as well.
RBC Capital also received a tailwind from the fact that it set a price target of $71 per share and reiterated its affirmative rating on the stock. We'll also find out more about how FTNT is doing when it releases its earnings results on May 2nd. In its last earnings report, the company had earnings per share of 51 cents, an improvement of 8 cents. Revenue was $1.42 billion, an increase of about 11% from the previous year, exceeding $10 million. Total billings were $1.86 billion, an 8.5% increase from $1.72 billion in the same period last year.
The company said it expects first-quarter sales to fall in the range of $1.3 billion to $1.36 billion, compared to expectations of $1.38 billion.
Zscaler (ZS)
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beware of oversold stocks of Z scaler (NASDAQ:ZS), too.
After testing $259.61, it fell to $170.97 and is now oversold on the RSI, MACD, and Williams %R. It has also remained in support dating back to November. The last time ZS became technically oversold was in May 2023, when ZS rebounded from around $90 to a high of $162.67. I hope to see a similar move this time as well.
As a result, profits are also strong. His EPS for the company in the second quarter was 76 cents, an 18 cent increase. Revenue increased 35.4% year-on-year to $525 million, exceeding $18.17 million. The company also expects fiscal 2024 sales to increase 31% year over year to $2.12 billion. The company also expects operating income to be approximately $397.5 million, with profit margins ranging from 15% in 2023 to 18% to 19%.
Macquarie analysts also give ZS an outperform rating and a price target of $245. The company is one of two cybersecurity companies hit by the healthcare hack and is well-positioned to benefit from the spending, it added.
On the date of publication, Ian Cooper did not hold (directly or indirectly) any positions in the securities mentioned. The opinions expressed in this article are those of the author and are subject to InvestorPlace.com Publishing Guidelines.
