The rapid digitization of industries and the consequent rise in cybercrimes have been driving a massive increase in demand for cybersecurity solutions. So, it could be wise to bet now on quality cybersecurity stocks Check Point Software Technologies (NASDAQ:CHKP), Tenable (TENB), and Radware (NASDAQ:RDWR). They are each currently trading below their 52-week highs, but we think are well-positioned to capitalize on the industry tailwinds. Read on.Increasing cybercrimes, such as the SolarWinds hack last year and the Colonial Pipeline incident earlier this year, have created increasing demand for advanced cybersecurity solutions. Notably, technology company Kaseya fell victim to a cyberattack earlier this month. Thus, governments worldwide have been taking measures to fight against cyber hackers. President Biden issued an executive order in May 2021 to improve the country’s cybersecurity threat defense.
Accelerating digitalization has necessitated companies’ increased reliance on cloud-based solutions, making them vulnerable to cyberattacks. Consequently , the demand for cybersecurity solutions is expected to go up in the foreseeable future. According to Grand View Research, the global cybersecurity market is expected to grow at a 10.9% CAGR over the next seven years. Also, investors’ interest in the cybersecurity industry is evidenced by the First Trust Nasdaq CEA Cybersecurity ETF’s (CIBR) 26.9% returns over the past nine months.
Against this backdrop, we believe it is wise to bet on the shares of established cybersecurity companies Check Point Software Technologies Ltd. (CHKP), Tenable Holdings, Inc. (NASDAQ:TENB), and Radware Ltd. (RDWR). They are currently trading below their 52-week highs, but we think have plenty of upside to deliver.