The need for advanced cybersecurity solutions is now more than ever with increasing cyberattacks posing a threat to big and small organizations as businesses continue to digitize their operations. So, with this, we think it could be wise to bet on cybersecurity companies McAfee (MCFE), Trend Micro (OTC:TMICY) and Tenable (TENB). They are well positioned to capitalize on the growing demand. Read on. With businesses pressing ahead with digital transformation to stay ahead of their competition, and several companies preferring to continue working remotely via cloud-based platforms even in the wake of the COVID-19 pandemic, cybersecurity threats are rising. The SolarWinds hack last year, and the Colonial Pipeline cyberattack earlier this year highlighted the importance of advanced cybersecurity solutions.
President Biden signed an executive order last month to improve the nation’s cybersecurity. This boosted investors’ interest in cybersecurity stocks, as evidenced by the First Trust NASDAQ Cybersecurity ETF’s (CIBR) 6.7% gains over the past month versus the SPDR S&P 500 Trust ETF’s (SPY) 1.4% returns. Furthermore, according to a Facts and Factors report, the global Cyber Security Market is expected to grow at a 14.9% CAGR over the next five years.
So, we think it could be wise to scoop up the shares of the fundamentally strong cybersecurity players McAfee Corp. (MCFE), Trend Micro Incorporated (TMICY), and Tenable Holdings, Inc. (NASDAQ:TENB).