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Protect Your Portfolio with These 3 Buy-Rated Cybersecurity Stocks

Published 10/25/2021, 02:44 PM
Updated 10/25/2021, 03:00 PM
© Reuters.  Protect Your Portfolio with These 3 Buy-Rated Cybersecurity Stocks

© Reuters. Protect Your Portfolio with These 3 Buy-Rated Cybersecurity Stocks

Cyber scams and increasingly sophisticated cyber-attacks over the past decade have compelled private organizations and government agencies to tighten their cybersecurity measures. Because spending on cybersecurity solutions is increasing, the industry is witnessing impressive growth. Thus, we think fundamentally sound cybersecurity stocks of NortonLifeLock (NASDAQ:NLOK), McAfee (MCFE), and Radware (NASDAQ:RDWR) could now be solid bets to cash in on the industry’s immense growth prospects. These stocks are rated ‘Buy’ in our proprietary rating system. So, let’s discuss these names in more detail.The popularity of hybrid work structures and digitization trends across almost every sector have fostered increasing use of cloud-based and digital solutions, bringing greater risks of cyber threats. According to the Identity Theft Resource Center (ITRC), the frequency of data breaches so far this year has already exceeded the 2020 total.

On the bright side, people are becoming increasingly cognizant of the need for cybersecurity. Governments and private organizations worldwide are investing significantly to enhance their security infrastructure and safeguard against potential thefts. Driven by the increasing demand, the global cybersecurity industry is expected to increase at a 10.9% CAGR from 2021 - 2028. Earlier this year, President Biden issued an executive order seeking to strengthen national cybersecurity and protect government networks following the ransomware attacks on the Colonial Pipeline. Federal Agencies reminded corporates and businesses of their obligation to keep up with the industry standards for cybersecurity after the Federal Trade Commission (FTC) upgraded its cybersecurity enforcement actions.

Given the growing cybersecurity market, we think the shares of solutions providers in this space, NortonLifeLock Inc. (NLOK), McAfee Corp. (MCFE), and Redwares Ltd. (RDWR), could be solid bets now. These stocks are rated ‘Strong Buy’ or ‘Buy’ in our proprietary POWR Ratings system.

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