Info@NationalCyberSecurity
Info@NationalCyberSecurity

If You Can Only Buy One Cybersecurity Stock in April, It Better Be One of These 3 Names | #hacking | #cybersecurity | #infosec | #comptia | #pentest | #ransomware


When it comes to cybersecurity, we’re not even close to being prepared. All of which makes these top cybersecurity stocks to buy even more attractive.

Cities, schools, hospitals, even the U.S. government are still sitting ducks to this day. And if you think you’re fully protected from it, you’re not. In fact, more than 353 million Americans were affected by a cybercrime just last year, says Statista. Of course, that number includes folks who were part of more than just one cyber incident.

Worse, “Almost three-quarters, or 73%, of board members at companies with over 5,000 employees fear their organization is at risk of a major cyberattack within the next year, a survey commissioned by Proofpoint in 12 countries showed,” as noted by CyberNews.com. 

“Critical infrastructure in the U.S. contains industrial control systems that are known to be easy targets for cyber attackers,” added TheHill.com. Even more ridiculous, the federal U.S. government has been viciously attacked because of unpreparedness. One of the most advanced countries in the world isn’t ready. Can you believe that?

We’ve known about these threats for years, and we’re still unprepared. The only good thing about that is that it’s been fueling upside in cybersecurity stocks to buy.

SentinelOne (S)

Source: Tada Images / Shutterstock.com

Over the last few weeks, shares of SentinelOne (NYSE:S) gapped lower on earnings.

Sure, the company’s earnings per share loss of 2 cents beat by 2 cents. And revenue of $174.2 million — up 38.2% year over year — beat by $4.83 million.

Unfortunately, not all numbers were seen as favorable. Annual recurring revenue, for example, came in at $724 million, which was below estimates. It also posted new annual recurring revenue of $61 million, which was also below estimates. Revenue guidance of $181 million also came in below estimates.

However, I’d use the recent weakness as an opportunity. It’s oversold on RSI, MACD, and Williams’ %R, and currently consolidating at around $22.55. From here, I’d like to see it refill its bearish gap at around $27 initially.

Bank of America has a buy rating on the stock with a price target of $35. The firm added, “We remain positive on SentinelOne’s competitive positioning and its near-term pathway to profitability and [free cash flow] generation.”

Palo Alto Networks (PANW)

Palo Alto Networks (PANW) logo on corporate building

Source: Sundry Photography / Shutterstock.com

Another one of the top cybersecurity stocks to buy is Palo Alto Networks (NASDAQ:PANW). After plunging from about $370 to a recent low of $265 on cut guidance, it’s showing signs of life.

Just weeks ago, the company reduced its full-year revenue guidance to a new range of $7.95 billion to $8 billion from $8.15 billion to $8.2 billion. It also cut its full-year billings outlook to a new range of $10.1 billion to $10.2 billion, from $10.7 billion to $10.8 billion. However, it looks like most of that mess has been priced into the stock.

Now trading at $278.87, I’d like to see PANW initially retest resistance at $330. With patience, I’d also like to see it refill its bearish gap at around $330 a share.

Analysts at Argus just reiterated a buy on the stock, with a price target of $336. “If we thought there was any deterioration in the demand environment for cybersecurity software or there was some competitive or execution issue, we might agree with the market,” said Argus’ Joseph Bonner, as quoted by Seeking Alpha.

“However, the cybersecurity environment is, if anything, getting more toxic as generative AI may be used for both good and ill.”

Plus, CEO Nikesh Arora is confident that demand for cybersecurity remains robust.

Amplify Cybersecurity ETF (HACK)

Illustration of hacker with Ethereum

Source: Sergey Nivens/Shutterstock.com

Or, we can diversify at a low cost with the Amplify Cybersecurity ETF (NYSEARCA:HACK).

With an expense ratio of 0.60%, the HACK ETF holds 24 cybersecurity stocks, including Palo Alto Networks, Fortinet (NASDAQ:FTNT), Check Point Software (NASDAQ:CHKP) and Gen Digital (NASDAQ:GEN) to name a few. 

Since launching in 2014, the HACK ETF portfolio includes a portfolio of companies actively involved in providing cybersecurity solutions that include hardware, software and services. All of which should thrive from the growing global cyber threats.

As pointed out by AmplifyETFs.com, “In 2023, the global cybersecurity market reached $236.75 billion, and is projected to grow to $506.79 billion by 2032. Defense Spending on Cybersecurity Is Growing Significantly: The overall DoD (Department of Defense) proposed budget grew 3.2% for 2024 vs 2023 while Cyber spending (as part of that request) grew more than 15%.”

After bottoming out at around $50 late last year, the HACK ETF is now consolidating at around $63.83. From here, I’d like to see it initially retest $67 resistance. 

On the date of publication, Ian Cooper did not hold (either directly or indirectly) any positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Ian Cooper, a contributor to InvestorPlace.com, has been analyzing stocks and options for web-based advisories since 1999.

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