Best Cybersecurity Stocks to Buy Now for March 2022

Best Cybersecurity Stocks to Buy Now for March 2022

InvestorPlace – Stock Market News, Stock Advice & Trading Tips The Cybersecurity Industry

Investing in cybersecurity stocks delivered better returns than the broader market in 2021, following increasing needs in internet protection associated with the expansion of remote working.

The cybersecurity sector is poised for strong growth in the years to come, as more and more things get connected to the internet. According to a Astute Analytica study , the global cybersecurity market is forecasted to increase by a compound annual growth rate (CAGR) of 13.4% from 2021 to 2027 to an overall size of $346 billion. Click to Enlarge The performance of the cybersecurity complex, measured by the First Trust Nasdaq Cybersecurity ETF (NASDAQ: CIBR ), lagged behind the SPDR S&P 500 Trust ETF (NYSEARCA: SPY ) in the first part of 2022, but the industry rebounded significantly in the past few days.

In the past few weeks, cybersecurity stocks headed higher as Russia invaded Ukraine. This has attracted awareness on increasing online security risks in the context of digital war. Ukraine’s official websites have been under cyberattacks before the Russian invasion, demonstrating that it is a full-fledged weapon in modern warfare.

Therefore, cyberattacks are likely to build up in the next months. Western countries that imposed sanctions on Russia will probably be exposed to a growing number of cyberattacks, which will benefit these cybersecurity companies.

In this context, the cybersecurity sector is set for renewed interest from investors. These are the top cybersecurity stocks to invest in to benefit from expanding digital security awareness. Best Cybersecurity Stocks

The cybersecurity thematic is set for renewed interest from investors. To identify the best cybersecurity stocks on the market, I have selected stocks that have cheap enterprise value (EV)/earnings before interest, taxes, depreciation, and amortization (EBITDA), and EV/Revenue metrics. The second criteria I look for is a reasonable level of profitability, measured by net margins and consistent topline growth.

According to these criteria my top cybersecurity picks for March 2022 are: F5 Inc. (NASDAQ: FFIV )

Check Point Software Technologies (NASDAQ: CHKP )

Fortinet (NASDAQ: FTNT )

Palo Alto Networks (NASDAQ: PANW )

Crowdstrike Holdings (NASDAQ: CRWD )

F5 Inc. [FFIV]

Source: Michael Vi / FFIV stock provides cloud applications focused on security and performance, enabling users to operate in any architecture, from on-premises to the public cloud.

The stock price of F5 plunged 20.5% since the beginning of the year to $194.37 per share. The company downgraded its guidance for the second quarter of 2022, following increasing concerns about its ability to meet the high demand for cloud environment solutions. This has created an opportunity for investors looking for a cheap and profitable cybersecurity stock.

Nonetheless, the fundamental picture of FFIV remains strong. The cloud application specialist is expected to deliver a net margin of 12.6% in 2022 , following a topline growth forecast slashed in half to annual growth of 5.9% to $2.75 billion.

However, F5 is exchanging at low valuation metrics, with 2022e EV/EBITDA of 11.7x and EV/Revenue of 4.02x. This represents an opportunity for investors looking to jump into a large-cap cybersecurity stock. Check Point Software Technologies [CHKP]

Source: jejim / CHKP is a smaller player in the cybersecurity complex in terms of market capitalization. It is, however, one of the world-leading companies in security solutions for internet networks. Check Point mainly provides solutions to protect internet, intranet, and extranet infrastructures.

The stock has outperformed its peers year-to-date, surging by 18.9% to about $138.61 per share. While this constructive momentum is unlikely to slow down due to geopolitical tensions between Russia and Western countries, according to the consensus, CHKP’s growth story remains subdued compared to peers.Net sales are esteemed to advance moderately in the next two years, up 5.7% to $2.29 billion in 2022 and up 4.9% to $2.4 billion in 2023.However, the vigorous profitability of the company is appealing for long-term investors. CHKP stock has an expected net margin of 34.7% in 2022, down from 37.6% in 2021. It also stands on a substantial pile of cash of $3.78 billion at the end of 2021, which is a constructive sign for the company in this inflationary environment.Besides, with a 2022e EV/EBITDA of 14.6x and EV/Revenue of only 6.65x, CHKP has affordable metrics compared to industry peers. Fortinet [FTNT]Source: Sundry Photography / FTNT stock is specialized in the development, marketing, and creation of integrated cybersecurity software and equipment for the protection of networks. The company also provides protection to company and government data.Fortinet is a mature cybersecurity company, […]

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