Cybersecurity solution providing companies are benefiting from an increasing requirement for privileged access security on the back of digital transformation and cloud migration strategies adopted by organizations. The heightening need for secure networks and cloud-based applications amid the COVID-19 pandemic-induced remote-working and online-learning wave is also fueling demand for cybersecurity solutions.
Industry participants like Okta OKTA, Tenable Holdings TENB, CrowdStrike CRWD and Cloudflare NET are gaining from the aforementioned trends.
Amid all the outbreak-related disruptions, hackers and cybercriminals are reportedly taking advantage of the pandemic-induced hype and using it to steal passwords and data. Cybersecurity companies stand to gain from data breaches as the chances of security-related purchases shoot up.
According to a report by Grand View Research, the global cybersecurity market is expected to witness a CAGR of 10.9% from 2021 to 2028 and reach $372 billion. Moreover, the report stated that the market’s growth will be driven by factors like the rising sophistication of cyberattacks.
With the emergence of the more contagious coronavirus variant — Omicron — several parts of the world are grappling with a massive spike in infection rates, leading to stringent lockdowns. Even some parts of the United States are witnessing Omicron variant outbreaks.
Additionally, as vaccination programs will still take several months to reach a major portion of the global population, the current restrictions are likely to be in place for a longer time, thus prolonging the remote-working and online-learning phase. The consistent need for secure networks is thus likely to benefit cybersecurity companies in 2022. Let’s thus take a closer look at some notable cybersecurity stocks that could enhance returns next year.
Okta: It provides an identity management platform for enterprise customers, including customer identity and access management services. The company currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Okta Identity Cloud’s capability to consolidate and easily integrate existing applications without compromising security or stability is attracting customers. Its products’ ability to automate a process, secure data and reduce costs is also a positive.
The recent acquisition of