The Zacks Analyst Blog Datadog, Palo Alto Networks and CyberArk Software
For Immediate Releases
Chicago, IL – October 10, 2024 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Datadog Inc. DDOG, Palo Alto Networks Inc. PANW and CyberArk Software Ltd. CYBR.
Here are highlights from Thursday’s Analyst Blog:
3 Cybersecurity Stocks to Buy for Handsome Returns in the Short Term
Cybersecurity encompasses comprehensive security measures designed to protect systems, networks, and programs from digital attacks. These attacks often aim to access, alter, or destroy sensitive information, extort money from users through ransomware, or disrupt the integrity of normal business operations.
The widespread adoption of artificial intelligence (AI), Internet-of-Things (IoT) devices, and increased digitization across both public and private sectors has heightened vulnerabilities and expanded attack surfaces, necessitating the development of advanced security solutions.
Here we recommend three stocks from the cybersecurity space with strong potential to provide double-digit returns in the short-term. These are: Datadog Inc., Palo Alto Networks Inc. and CyberArk Software Ltd.
Huge Growth Potential for Cybersecurity Space
The cybersecurity market has excellent growth opportunities for the future. Companies in this space offer integrated protection against evolving security threats while simplifying IT security infrastructure. The demand for advanced security solutions is rising owing to the increasing incidence of cyberattacks.
Cybersecurity companies provide solutions to safeguard applications, networks, and cloud computing environments. Their offerings include application-specific integrated circuits, hardware architecture, operating systems, and associated security and networking functions, ensuring robust defenses against cyberattacks.
At present, the global cybersecurity market size is around $190 - $210 billion. Several market researchers have estimated that this market size will likely reach $300 - $375 billion during 2028-2030.
Buy 3 Cybersecurity Stocks With Strong Upside Potential
These stocks have strong growth potential for the rest of 2024 and have seen positive earnings estimate revisions in the last 60 days. Each of our picks currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Datadog Inc.
Datadog is benefiting from new customer additions and an increased adoption of cloud-based monitoring and analytics platform, driven by accelerated digital transformation and cloud migration across organizations. DDOG’s solid adoption of Synthetics and Network Performance Monitoring products is expected to aid customer wins in the near term.
Besides an expanding portfolio, contribution from a solid cloud partner base, including Google Cloud, Microsoft Azure and Amazon Web Services, remains a key growth driver for DDOG. Considering the abovementioned factors, we expect 2024 net sales to increase 22% from 2023.
Attractive Price Upside Potential for DDOG Shares
Datadog has an expected revenue and earnings growth rate of 23.4% and 24.2%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.6% over the last seven days.
At present, the short-term average price target of brokerage firms for the stock represents an increase of 17.8% from the last closing price of $123.72. The brokerage target price is currently in the range of $98-$160.
Palo Alto Networks Inc.
Palo Alto Networks has been benefiting from continuous deal wins and the increasing adoption of its next-generation security platforms, attributable to the rise in the hybrid work environment and the heightened need for stronger security.
PANW’s strong back-to-back quarterly performances reflect its sustained focus on product innovation, a shift in its business model to subscription-based services, platform integration and continued investments in the go-to-market strategy. The normalization of the supply chain is also aiding PANW’s growth across the Products, Services and Subscription segments.
Impressive Price Upside Potential for PANW Stocks
Palo Alto Networks has an expected revenue and earnings growth rate of 13.7% and 10.4%, respectively, for the current year (ending July 2025). The Zacks Consensus Estimate for current-year earnings has improved 0.2% over the last 30 days.
At present, the short-term average price target of brokerage firms for the stock represents an increase of 12.9% from the last closing price of $355.13. The brokerage target price is currently in the range of $285-$420.
CyberArk Software Ltd.
CyberArk Software has been benefiting from the rising demand for cyber security and privileged access security solutions due to the long list of data breaches and increasing digital transformation strategies.
A strong presence across verticals, such as banking, healthcare, government and utilities, is safeguarding CYBR from the adverse effects of softening IT spending. CYBR’s strategic mix shift toward software-as-a-service and subscription-based solutions is driving top-line growth.
Solid Price Upside Potential for CYBR Stocks
CyberArk Software has an expected revenue and earnings growth rate of 24.9% and more than 100%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 4.6% over the last 60 days.
At present, the short-term average price target of brokerage firms for the stock represents an increase of 12.4% from the last closing price of $282.41. The brokerage target price is currently in the range of $275-$335.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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Palo Alto Networks, Inc. (PANW) : Free Stock Analysis Report
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Datadog, Inc. (DDOG) : Free Stock Analysis Report