Now we will introduce to you which cybersecurity stock to buy. Also, we will discuss the important benefits of cyber security stock.
Know About The Cybersecurity Stock To Buy
In this article, let us know the cybersecurity stock that we can buy. But before that let us know what is cyber security stock?
So cybersecurity stocks have been a popular investment choice for investors in 2018. The stocks have been on a roller coaster ride, with some going up and some going down.
There are several cybersecurity stocks to invest in. Therefore, let us know which cybersecurity stock we can buy?
Where Cybersecurity Stocks To Buy
Let us know one of the cybersecurity stocks to buy. It is the Palo Alto Networks (PANW), so what is it?
Palo Alto Networks (PANW) is American multinational cybersecurity and anti-virus. Also, a cloud-security company based in Santa Clara, California.
So PANW provides network security systems. It is designed to protect organizations from cyber attacks.
The company’s products include the following:
- next-generation firewalls
- threat protection
- cloud security.
This company is an important player in this sector. Also, the company has a very good reputation in the sector.
Therefore, it is a must-have stock for any investor’s portfolio. Now let us know about the good and bad of this stock.
Good Of This Stock
The company has been growing well in recent years. It has been doing well in terms of revenue and earnings.
In the most recent quarter, it reported a GAAP net income of $0.82 per share. On revenue of $534 million, up 58% year-over-year and up 39% sequentially.
There is a lot of optimism about the revenue growth going forward as well. The company is trading at a reasonable price-to-earnings ratio of 23x.
Which is cheaper than many competitors. On a price, to sales basis, the stock seems overvalued.
But because they are growing very rapidly at a high rate. That might be justified as well.
Also if you look at the historical valuation multiples. Then it trades at around 17x 10-year average earnings.
All in all, it seems like a solid investment with plenty of growth potential as well as stability. They have been around for ages now and seem to be growing steadily over time.
Without any major hiccups on their way so far. This might not be a safe bet. But worth having some money invested here.
So even if you don’t think it’s going to go up by 50 or 100 percent overnight. Also, instead, grow slowly.
But steadily over time so it might be a great long-term investment choice for you as well. Their operating margins are also very high around 40%.
Which means they are pretty profitable as well. Overall it seems like a solid investment choice for your portfolio.
Bad Of This Stock
What are the bad things about this stock? Their price volatility can be very high.
It’s better suited for more aggressive investors who won’t mind putting some money on this stock. Also, waiting during some volatile times until they start seeing good profits from it as well.
That is the only bad thing about this stock.