The challenges of our time are not always related to basic issues such as food, medicine, education or construction. In the era of intensifying technological development, millions of users need ways to protect their digital presence. This narrative lies at the heart of many modern investors choosing cybersecurity stocks to buy. Advances in technology have both empowered users and made using computers more risky.
The growth of the e-commerce market means an increase in demand for the services of cybersecurity companies. Over the past 30 years, online resources have moved from ignoring and minimizing the involvement of such organizations. Now, they are accepting and making protection against attacks and hacks a top priority. As a result, 2/3 of organizations believe that they can’t respond to critical threats without AI. Detecting and countering such challenges now requires more resources, experienced professionals and cutting-edge software systems.
Therefore, the projected growth of the cybersecurity market to $271.90 billion by 2029 isn’t surprising. Let’s explore three cybersecurity stocks to buy now at their 52-week lows.
Fortinet (FTNT)
Network security is the core business of Fortinet, Inc. (NASDAQ:FTNT). It has provided network security services for over 20 years to enterprises and government agencies.
While headquartered in California, it serves customers worldwide. It steadily focuses on Secure Access Services (SASE) and Security Operations (SecOps). But Fortinet is constantly improving its approach by integrating artificial intelligence (AI) and the latest cybersecurity techniques. The last three years have been challenging for the company with a 16% profit margin. However, the underestimation of further growth makes FTNT one of the cybersecurity stocks to buy, as the company’s financial position remains strong. The 19% year-over-year (YOY) growth in deferred revenue is at $4.88 billion. It is a beacon of positive performance in the coming quarters.
FTNT’s price has been in the $44.12-$81.24 range for the past 52 weeks and is currently in the middle of this range. Fortinet’s transition from selling product licenses to a subscription-based model has taken time, but it won’t last forever. Once the company’s business model restructuring is complete, it may be too late to look for a lower price. A slight decline in FTNT rates could be followed by an unprecedented rise.
Okta (OKTA)
The identity and access management sector has its leaders and outsiders, and Okta (NASDAQ:OKTA) is among the former.
The volatility of the tech market has affected the stock, resulting in its price movement between $65.04 and $114.50 over the past 52 weeks.
The company’s operations demonstrate a steady movement toward sustainable development. A 20% increase in subscription revenue shows as evidence. According to analysts, OKTA is one of the cybersecurity stocks to buy due to its significant undervaluation. The intrinsic value estimate indicates a value of $141.61, while the current price is below $100.
Okta’s high beta of 1.03 means that the company is sensitive to market fluctuations. But it could be a great opportunity for those who like to make money on price changes. The company is trying to increase its presence through acquisitions and partnerships. And it is expanding its product line. The estimated growth rate of 51.35% for the current year is impossible to ignore.
SentinelOne (S)
The cybersecurity community has repeatedly heard of the Singularity Platform as an advanced system for detecting and responding to threats in the digital world. SentinelOne, Inc. (NYSE:S) created this platform and implemented AI into it to provide faster and more accurate solutions for organizations of all sizes.
The company’s Q1 of fiscal year 2024 results include a negative 16.48% return on equity for the quarter. This demonstrates the cost of combining digital security with AI. But as long as investors are focused on the negative, SentinelOne may turn out to be one of the best cybersecurity stocks to buy. The company’s revenue grew by 39.7% YOY, exceeding expectations by $5.25 million.
The 50-day and 200-day moving averages of $19.98 and $21.77, respectively, indicate a consolidation phase. Investors are coming to a consensus on the potential of S, which may soon be followed by a rapid recovery in the share price. This does not mean that the growth will be within the price range of the last 52 weeks ($13.87 to $30.76), as the stock has already soared above the $70 level.
On the date of publication, Julia Magas did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.
