In this article, we take a look at the 12 best performing cybersecurity stocks in 2022. skip this part The 5 best performing cybersecurity stocks in 2022.
The rise in cyberattacks has put governments and businesses around the world on edge. As businesses migrate their digital assets to their cloud platforms, concerns about data security are growing. As such, cybersecurity companies continue to see increasing demand for their products from the government and private sector. According to her Bloomberg report published in November, Spear Invest chief investment officer Ivana Delevska said security is usually the last area to see budget cuts in the enterprise sector. As such, analysts believe the cybersecurity space is expected to continue growing despite recession concerns.
“This constant demand underpinnings makes security a very attractive field, and is why people are getting involved even though there is so much uncertainty elsewhere,” Delevska said. is telling.
Cybersecurity resilience
Bloomberg’s report cited a Morgan Stanley study shedding light on the resilience of the cybersecurity sector. Demand for the broader software sector is slowing amid recession fears, according to Morgan Stanley’s quarterly survey. But according to the survey, top software executives say security is a top priority.
According to a Bloomberg report, the cybersecurity group’s shares appeared to be cheaper than the broader software sector. In November, when the report was published, the stock index was trading at 26 times expected earnings and 1.3 times sales. The broader software sector index showed these readings at 28 and 5.7 respectively.
First Trust Portfolios Senior Vice President Ryan Issakainen believes the cybersecurity sector remains strong as cybercriminals operate in a space unconnected to the broader economy, according to a Bloomberg report. .
In an interview with BNN Bloomberg, Daniel Ives, Chief Strategy Officer and Head of Technology Research at GBH Insights, said security remains a primary focus of their concerns as enterprises move to the cloud. . He said cloud security is becoming one of the biggest themes in the cybersecurity market. He also spoke about the merger and acquisition activity taking place in the industry, and talked about notable companies such as Cisco, Zscaler and Qualys Inc.
Photo by Kaur Kristjan on Unsplash
our methodology
In this article, we’ve scanned a variety of ETFs that track cybersecurity stocks and picked the most notable cybersecurity stocks to outperform the broader market in 2022. All but one of his stocks in this article posted positive performance in his 2022. Compare the performance of these stocks to a broader index. The S&P 500 is down about 19% in 2022 and the NASDAQ is down about 30%. The cybersecurity stocks in the article outperformed when compared to these indices. Stocks are ranked in ascending order of performance in 2022.
The 12 best performing cybersecurity stocks in 2022
12. Juniper Networks (NYSE:JNPRMore)
Performance in 2022: -4%
Juniper Networks, Inc. (NYSE:JNPR) ranks 12th on its list of 2022 best performing cybersecurity stocks. Juniper Networks, Inc. (NYSE:JNPR) offers a variety of cybersecurity solutions, including next-generation firewalls (NGFWs). ), public cloud security products, end-to-end security solutions, and secure data centers. Juniper Networks, Inc. (NYSE:JNPR) posted nearly 19% year-over-year revenue growth in the third quarter. Net income for the period increased 26% compared to the same period last year. Juniper Networks, Inc. (NYSE:JNPR) said it expects to post strong sales in the fourth quarter based on current demand. It is also expected to continue growing beyond 2023.
For the fourth quarter, Juniper Networks, Inc. (NYSE:JNPR) expects revenue of $1.475 billion, plus or minus $50 million, well above consensus of $1.42 billion.
11. Check Point Software Technologies (NASDAQ:CHKP)
Performance in 2022: +1.16%
Check Point Software Technologies Ltd. (NASDAQ:CHKP) is one of the world’s leading cybersecurity companies. Check Point Software Technologies Ltd. (NASDAQ:CHKP) offers anti-ransomware solutions, end-to-end security, cloud security, and several other solutions. Check Point Software Technologies Ltd. (NASDAQ:CHKP) has outperformed the market in 2022, gaining about 1.16%. Check Point Software Technologies Ltd. (NASDAQ:CHKP) fell in December after it approved a one-tenth reverse stock split of its common stock. The consolidation of shares will reduce the number of common shares to approximately 9.3 million shares. Check Point Software Technologies Ltd. (NASDAQ:CHKP)’s third-quarter revenue increased nearly 66 percent to $500,000. His GAAP EPS for the period was $0.12, beating estimates by $0.03.
As of the end of the third quarter, 32 hedge funds tracked by Insider Monkey reported holding shares in Check Point Software Technologies Ltd. (NASDAQ:CHKP). That’s compared to last quarter’s 34 funds. These bets totaled him $680 million.
10. VMware, Inc. (NYSE:VMWs)
Performance in 2022: +5%
VMware, Inc. (NYSE:VMW) is one of the world’s largest cloud computing companies. VMware, Inc.’s (NYSE:VMW) cybersecurity solutions help businesses protect their digital assets. VMware, Inc. (NYSE:VMW) is known for its cybersecurity solutions for financial companies, healthcare providers, governments and state agencies. VMware, Inc. (NYSE:VMW)’s well-known cybersecurity products include VMware Contexa. VMware, Inc. (NYSE:VMW) stock has outperformed the market, rising nearly 5% in 2022. In November, VMware, Inc. (NYSE:VMW) reported third quarter results. Adjusted EPS for the period was $1.47, $0.13 short of estimates. Revenue for the period increased 0.6% to $3.21 billion, $160 million below estimates.
As of the end of the third quarter, 63 hedge funds tracked by Insider Monkey were reported to have stakes in VMware, Inc. (NYSE:VMW). Last quarter he was 52 funds.
9. International Business Machines Corporation (NYSE:IBM)
Performance in 2022: +8%
Technology giant International Business Machines Corporation (NYSE:IBM) needs no introduction. International Business Machines Corporation (NYSE: IBM) is also known for its cybersecurity solutions. International Business Machines Corporation’s (NYSE:IBM) best-known cybersecurity products include QRadar, IBM Security® Verify Privilege Vault, IBM Security Trusteer Pinpoint Detect, and IBM Security zSecure Admin.
Out of 920 hedge funds tracked by Insider Monkey, 40 reported holding stakes in International Business Machines Corporation (NYSE:IBM). The total amount of those bets he made was $869 million. The biggest stakeholder in International Business Machines Corporation (NYSE: IBM) was his Arrowstreet Capital of Peter Rathjens, Bruce Clarke and John Campbell, who reportedly owned $515 million in stock.
Earlier this month, shares in International Business Machines Corporation (NYSE:IBM) rose after investment firm MoffettNathanson upgraded the company from Under Perform to Market Perform. The firm’s analyst Lisa Ellis said International Business Machines Corporation (NYSE: IBM) could benefit from growth in her IT services division in 2023.
8. CACI International Inc. (NYSE:CACIMore)
Performance in 2022: +11%
CACI International Inc (NYSE:CACI) provides cybersecurity solutions in critical domains including cyberthreat diagnosis and mitigation, authority to operate (ATO) lifecycle process acceleration, threat analysis and cyberspace exploit expertise. doing. In early January, Morgan Stanley upgraded his CACI International Inc (NYSE: CACI) from his Equal Weight to Overweight. CACI International Inc (NYSE:CACI) said it stands to benefit from increased spending by the US government. CACI International Inc (NYSE:CACI) actually wins government contracts. The company recently won his five-year contract from the Defense, Counterintelligence and Security Agency to provide background investigation fieldwork services worth $2.25 billion.
Similarly, CACI International Inc (NYSE:CACI) won a one-time prime contract worth up to $284 million from the National Security Agency. CACI International Inc (NYSE:CACI) provides expertise and systems engineering support to the NSA’s Cybersecurity Directorate.
A total of 29 hedge funds tracked by Insider Monkey reported taking stakes in CACI International Inc (NYSE:CACI), compared with 22 funds last quarter. The largest shareholder of CACI International Inc (NYSE:CACI) was Murray Stahl’s Horizon Asset Management, which held a $118 million stake in CACI International Inc (NYSE:CACI).
7. KnowBe4, Inc. (NASDAQ:KNBE)
Performance in 2022: +11%
KnowBe4, Inc. (NASDAQ:KNBE) is a Florida-based company that provides solutions that help businesses strengthen their online and enterprise security. KnowBe4, Inc. (NASDAQ:KNBE) shares are up about 11% in 2022. KnowBe4, Inc. (NASDAQ:KNBE) products are designed primarily to help companies train their employees in cybersecurity, phishing attacks, password security, and other workplace-related online topics. Security best practices. The company’s products include the Kevin Mitnick Security Awareness Training Program, Compliance Plus, PhishER, and Compliance Manager. These programs are used by various companies to prepare their systems for cyberattacks.
Hedge fund sentiment for KnowBe4, Inc. (NASDAQ:KNBE) is strong. As of the end of the third quarter, 28 hedge funds tracked by Insider Monkey reported holding shares in KnowBe4, Inc. (NASDAQ:KNBE), compared to his 12 funds last quarter. bottom. The total amount of those bets he made was $484 million. His largest shareholder in KnowBe4, Inc. (NASDAQ: KNBE) at the end of September was Robert Smith’s Vista Equity Partners, which holds $342 million in shares. Another notable stakeholder in KnowBe4, Inc. (NASDAQ:KNBE) is Alexander Captain’s Cat Rock Capital, which owns $25.3 million in shares.
6. A10 Networks, Inc. (NYSE:ATEN)
Performance in 2022: +15%
A10 Networks, Inc. (NYSE:ATEN) is one of the top performing cybersecurity stocks for 2022. A10 Networks, Inc. (NYSE:ATEN) provides solutions that help organizations tackle key problems such as DDoS attacks. A10 Networks, Inc. (NYSE:ATEN) is a significant player in the application delivery controller (ADC) space. The company’s Thunder ADC and Lightning ADC distribution controller products enable enterprises to implement advanced server load balancing, aFleX scripting, and DNS firewalling. A10 Networks, Inc. (NYSE:ATEN) third-quarter revenue increased approximately 10.2% to $72.1 million. Adjusted net income for the period was $15.9 million ($0.20 per diluted share), compared with $13.7 million ($0.17 per diluted share) in the same period last year.
At the end of the third quarter, 22 hedge funds tracked by Insider Monkey had stakes in A10 Networks, Inc. (NYSE:ATEN). These wagers totaled him $113 million.
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Disclosure: None. The 12 best performing cybersecurity stocks in 2022 was first published on Insider Monkey.
