🤯 Have you seen our AI stock pickers’ 2024 results? 84.62%! Grab November’s list now.Pick Stocks with AI

The Zacks Analyst Blog Highlights: Qualys, CyberArk, Fortinet And Palo Alto Networks

Published 11/12/2018, 06:43 AM
Updated 07/09/2023, 06:31 AM
US500
-
FTNT
-
QLYS
-
PANW
-
CYBR
-

For Immediate Release

Chicago, IL –November 12, 2018 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Qualys, Inc. (NASDAQ:QLYS) , CyberArk Software Ltd. (NASDAQ:CYBR) , Fortinet, Inc. (NASDAQ:FTNT) and Palo Alto Networks, Inc. (NYSE:PANW) .

Here are highlights from Friday’s Analyst Blog:

4 Cyber Stocks in Focus as China Violates U.S. Anti-Hack Pact

China’s engagement in hacking U.S. government and corporate data has led the former to violate a crucial bilateral anti-hacking agreement with the latter. The accord was signed between the two nations in 2015, aimed at curbing economic cyber espionage.

Speaking at the Aspen Institute's Cyber Summit on Nov 8, Senior National Security Agency official Rob Joyce said that it “is clear they are well beyond the bounds of the agreement today that was forged between our two countries.”

The report comes barely a month after Bloomberg Businessweek claimed that Chinese spy chips were present in numerous American corporate giants’ hardware, indicating the seriousness of data breach and sensitive information theft by Chinese hackers.

Thus, the frequency and extent of data breaches in recent times makes cyber security a priority among companies and individuals alike. Therefore, it would be prudent to keep a few cyber security stocks in your watch-list.

Chinese Hackers Might Face U.S. Sanctions

The anti-hacking agreement was signed between China’s President Xi Jinping and former president Barack Obama in order to refrain both nations from knowingly pursuing cyber-enabled theft of intellectual property or other forms of economic intelligence for commercial gains. Violation of this pact could see Chinese hackers sanctioned by the United States.

However, the agreement didn’t put an immediate stop to China’s hacking activities. U.S. intelligence and private security experts have noted ongoing cyber breaches by China since 2015, although less frequent.

“While it's not black and white, met the agreement or they didn't meet the agreement, it's clear that they are well beyond the bounds today of the agreement that was forged between our countries,” said Joyce, addressing the Asian nation’s cyber theft activities.

Although Joyce didn’t rule out the idea of China getting hit by U.S. sanctions for their continuing economic espionage in recent times, he believed that reaching the agreement instead of imposing sanctions on Chinese hackers wasn’t a bad idea.

“Certainly, sanctions are things we’ve used in context of cyber malfeasance, and we’ll continue to use that along with other capabilities,” Joyce said.

The two nations are expected to hold a top-level security meet on Nov 9 to address the data breach issue. The latest development puts much strain on the already-stressful U.S.-China relationship; given the ongoing trade war hasn’t been resolved yet.

Cyber Security Market Growth Curve

The cyber security industry is associated with shielding confidential data and computers from cyber criminals. The market space comprises improved digital safeguard, better security of cyberspaces and faster reaction time during national emergencies.

According to a market research report by SB Wire, the global cyber security market, that was valued at $105.45 billion in 2015, is expected to witness a compound annual rate of 9.5% in during 2016-2021.

The need for advanced cyber security systems has become imperative in order to tackle China’s frequent attempts at confidential government and corporate data theft, thereby making it crucial to keep track of a couple of cyber security stocks.

Cyber Stocks in Focus

We have picked a few Cyber stocks from security that have performed better than the industry this year.

Qualys, Inc. provides cloud security and compliance solutions that enable organizations to identify security risks to their information technology infrastructures help protect their IT systems and applications from cyber-attacks.

The company carries a Zacks Rank #1 (Strong Buy) and its expected earnings growth rate for the current year is 20.9% compared with theSecurity industry’s projected rise of 12.7%. The Zacks Consensus Estimate for the company’s earnings rose 8.7% in the last 60 days.

CyberArk Software Ltd. provides information technology security solutions. The company offers services which protect organizational privileged accounts from cyber-attacks.

CyberArk carries a Zacks Rank #1 and its Zacks Consensus Estimate for earnings hasn’t changed over the past two months for the current year. The company’s expected earnings growth rate for the current year is 26.7% compared with the Security industry’s projected rise of 12.7%.

Fortinet, Inc.provides network security appliances and Unified Threat Management network security solutions to enterprises, service providers and government entities worldwide.

Fortinet carries a Zacks Rank #3 (Hold) and its expected earnings growth rate for the current year is 68.2% compared with theSecurity industry’s projected rise of 12.7%. The Zacks Consensus Estimate for the company’s earnings rose 4.7% in the last 60 days.

Palo Alto Networks, Inc. offers a network security platform that allows enterprises, service providers, and government entities to secure their networks.

Palo Alto carries a Zacks Rank #3 and its Zacks Consensus Estimate for earnings hasn’t changed over the past two months for the current year. The company’s expected earnings growth rate for the current year is 26% compared with the Security industry’s projected rise of 12.7%.

The Hottest Tech Mega-Trend of All

Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.

See Zacks' 3 Best Stocks to Play This Trend >>

Media Contact

Zacks Investment Research

800-767-3771 ext. 9339

support@zacks.com

http://www.zacks.com

Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.



Fortinet, Inc. (FTNT): Free Stock Analysis Report

Qualys, Inc. (QLYS): Free Stock Analysis Report

Palo Alto Networks, Inc. (PANW): Free Stock Analysis Report

CyberArk Software Ltd. (CYBR): Free Stock Analysis Report

Original post

Zacks Investment Research

Latest comments

Loading next article…
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.