Cybersecurity Stocks For the Win (PANW, CLOQ, CYBR, CHKP)
The Stay-at-Home life much of the world has adopted in response to the COVID-19 pandemic is just the first chapter of a story that is now being written – one that will have profound implications for how we live our lives for many years to come; one that will alter the shape of the markets.
The next chapter is about managing life outside the home without driving outbreak “spikes”. And the one after that is likely when we learn that much of how we lived before the pandemic was unnecessary – things like going into an expensive downtown city office if you’re a lawyer or hanging out in a crowded shopping mall.
The virtualization and ecommerce revolution is structural. It has been slowly building for years. The coronavirus crisis has simply accelerated that trend. And, in its aftermath, we aren’t going to see these new strides retraced. That ground is lost for good. The steps we are taking toward ecommerce and virtualization are permanent. This is market share expansion to the detriment of commercial real estate, commercial property management, and brick-and-mortar.
But that also implies many other consequences, one of which is a dramatic intensification of our reliance on core cybersecurity solutions. With that in mind, here is a shortlist of some of the most interesting stocks in the cybersecurity space: Palo Alto Networks Inc (NYSE:PANW), Cyberloq Technologies Inc (OTCMKTS:CLOQ), Cyberark Software Ltd (NASDAQ:CYBR), and Check Point Software Technologies Ltd. (NASDAQ:CHKP).
Palo Alto Networks Inc (NYSE:PANW) promulgates itself as a security platform solutions worldwide. The stock has been roaring back to life following a horrid March during the main crash reaction to the COVID-19 pandemic. After being cut in half in a matter of weeks, shares have regained most of those losses and recently surfaced back above the key 200-day moving average.
The company provides firewall appliances and software; Panorama, a security management solution for the control of appliances deployed on an end-customer’s network as a virtual or a physical appliance; and Virtual System Upgrades, which are available as extensions to the virtual system capacity that ships with physical appliances.
It also offers subscription services covering the areas of threat prevention, uniform resource locator filtering, malware and persistent threat, laptop and mobile device protection, and firewall, as well as cyber-attack, threat intelligence, and content control.
In addition, the company provides support services; and professional services, including application traffic management, solution design and planning, configuration, and firewall migration, as well as online and classroom-style education training services.
Palo Alto Networks, Inc. sells its products and services through its channel partners, as well as directly to medium to large enterprises, service providers, and government entities operating in various industries, including education, energy, financial services, government entities, healthcare, Internet and media, manufacturing, public sector, and telecommunications.
If you’re long this stock, then you’re liking how the stock has responded to the announcement. PANW shares have been moving higher over the past week overall, pushing about 3% to the upside on above average trading volume.
Palo Alto Networks Inc (NYSE:PANW) managed to rope in revenues totaling $816.7M in overall sales during the company’s most recently reported quarterly financial data — a figure that represents a rate of top line growth of 14.8%, as compared to year-ago data in comparable terms. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($3.1B against $2.2B).
Cyberloq Technologies Inc. (OTCMKTS:CLOQ) is the more speculative name on this list, but deserves mention and focus given its strong potential as a leadership play on the authentication theme.
The company offers a simpler, more robust strategy that incorporates what it calls “geofencing” to place another qualifier in the equation and sharply reduce the odds of cybersecurity breaches.
This is the flagship offering for CLOQ: CyberloQ, a banking fraud prevention technology that enables institutional clients to combat fraudulent transactions and unauthorized access to customer accounts; and Turnscor, a Web-based proprietary software platform, which allows its customers to monitor and manage their credit from the privacy of their own homes.
CyberloQ keeps user’s sensitive Personal Identifiable Information (PII) in “non-active” status, only accessible through a secure authentication process. Utilizing elements of a user’s PIN – in combination with the unique MEID or UDID of the mobile device – CyberloQ creates a robust perimeter that prevents would-be hackers from activating user’s accounts. Leveraging Google’s geolocation service, CyberloQ creates a virtual boundary – otherwise known as a Geofence – around each user and their confidential information.
CyberloQ’s Geofencing functionality is compatible with the latest wireless technology, including cellular networks, Bluetooth, and WiFi. Whether it’s a designated perimeter over a city, building, if a user’s designated Geofenced cyber perimeter is breached, the account is immediately disabled.
To breach a CyberloQ Geofence, hackers would need all the user’s PIN data, be in possession of the user’s personal mobile device, and be physically within the designated Geofence. CyberloQ Geofencing provides a flexible and easy to use proactive cyber security measure. It creates a scalable hardened target and keeps cyber criminals on the outside – where they belong.
Cyberloq Technologies Inc. (OTCMKTS:CLOQ) shares have been moving higher over the past week overall, pushing about 25% to the upside on above average trading volume. Shares of the stock have powered higher over the past month, rallying roughly 58% in that time on strong overall action.
Cyberark Software Ltd (NASDAQ:CYBR) trumpets itself as a company that develops, markets, and sales software-based security solutions and services for organizations to safeguard and monitor their privileged accounts.
The company’s solutions include Core Privileged Access Security for risk-based credential security and session management with add-on options for least privilege server and domain controller protection, as well as secure remote vendor access to privileged access security; Application Access Manager for secrets management for application types and non-human identities; and Endpoint Privilege Manager for least privilege and credential theft protection for workstations. It also provides Sensitive Information Management solution; and software maintenance and support, and professional services.
The company offers its products to financial services, manufacturing, insurance, healthcare, energy and utilities, transportation, retail, technology, and telecommunications industries; and government agencies through direct sales force, as well as distributors, systems integrators, value-added resellers, and managed security service providers. It operates in the United States, Europe, the Middle East, Africa, the Asia Pacific, Japan, Latin America, and Canada.
The CYBR trading tape has been characterized by a pretty dominant offer in recent action, which hasn’t been the type of action CYBR shareholders really want to see. In total, over the past five days, shares of the stock have dropped by roughly -8% on above average trading volume. All in all, not a particularly friendly tape, but one that may ultimately present some new opportunities.
Cyberark Software Ltd (NASDAQ:CYBR) generated sales of $129.7M, according to information released in the company’s most recent quarterly financial report. That adds up to a sequential quarter-over-quarter growth rate of 19.9% on the top line. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($1.1B against $192.7M).
Check Point Software Technologies Ltd. (NASDAQ:CHKP) bills itself as a company that develops, markets, and supports a range of products and services for IT security worldwide.
The company offers a portfolio of network security, endpoint security, data security, and management solutions. It provides Check Point Infinity Architecture, a cyber security architecture that protects against 5th and 6th generation cyber-attacks across various networks, endpoint, cloud, workloads, Internet of Things, and mobile; Check Point Network Security, security gateways and software platforms that support small business and large enterprise data center and telco-grade environment; and Check Point SandBlast family for threat prevention and zero-day protections.
The company also offers Check Point CloudGuard cloud security product that delivers threat prevention security, cloud visibility, cloud security posture management, and workload protection solutions for enterprise cloud networks, data, and applications; Check Point SandBlast Mobile for mobile security in iOS and Android devices; and Check Point Security Management, which offers security management through a single console that streamlines security operations and provides visibility into policy administration and threat analysis.
In addition, the company provides technical customer support programs and plans; professional services in implementing, upgrading, and optimizing Check Point products comprising design planning and security implementation; and certification and educational training services on Check Point products. It sells its products and services to enterprises, service providers, small and medium sized businesses, and consumers through a network of channel partners, such as distributors, resellers, system integrators, original equipment manufacturers, and managed security service providers.
CHKP has had a rough past week of trading action, with shares sinking something like -2% in that time. That said, chart support is nearby and we may be in the process of constructing a nice setup for some movement back the other way.
CHKP shares have been relatively flat over the past month of action, with very little net movement during that period.
Check Point Software Technologies Ltd. (NASDAQ:CHKP) generated sales of $486.5M, according to information released in the company’s most recent quarterly financial report. That adds up to a sequential quarter-over-quarter growth rate of -10.5% on the top line. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($1.7B against $1.4B).
Published at Fri, 15 May 2020 05:25:12 +0000