As life becomes more and more digitally focused, cybersecurity becomes an increasingly important product on the market. And as that occurs, cybersecurity stocks are going to be increasingly important to the tech stocks sector. That means lucrative opportunities for you in cybersecurity stocks.

Plenty of high publicity cyberattacks have occurred in recent times against individuals, corporations and even governments. Cybersecurity companies like Palo Alto Networks and Fortinet are required to investigate the attacks that have occurred. And, more importantly, prevent future attacks from happening. Here are some statistics:

• Global spending on cybersecurity is expected to hit $133.7 billion by 2022.  
• 62% of businesses had a phishing or social engineering attack hit them in 2018 and that number is likely growing. 
• And data breaches revealed 4.1 billion records in the first half of 2019 alone. 

There are many similar statistics to be found. It’s no wonder that cybersecurity stocks have become so popular. But which ones you should be keeping an eye on?

We’ve done the work so you don’t have to. Here are 12 cybersecurity stocks to watch in 2021 to keep in mind as you protect your fortunes. 

Top Cybersecurity Stocks List of 12 Companies

tr>CSCO$208.85 billion$49.05Nasdaq

Ticker	Market Cap	Price	Exchange
PANW	$30.74 billion	$316.09	NYSE
FTNT	$28.53 billion	$174.84	Nasdaq
CHKP	$16.54 billion	$117.92	Nasdaq
NLOK	$12.33 billion	$21.20	Nasdaq
AKAM	$16.18 billion	$99.12	Nasdaq
OKTA	$28.02 billion	$213.56	Nasdaq
CRWD	$43.47 billion	$196.48	Nasdaq
PFPT	$7.27 billion	$126.63	Nasdaq
CYBR	$5.44 billion	$139.06	Nasdaq
FEYE	$4.72 billion	$19.81	Nasdaq
QLYS	$3.97 billion	$101.28	Nasdaq

With that said, let’s take a deeper dive into four companies that we believe are especially worth watching right now:

Palo Alto Networks (NYSE: PANW)

Palo Alto Networks is a cybersecurity stock mostly known for cutting-edge firewalls. These have won the cybersecurity company much acclaim. But in the age of cloud computing, traditional network protection is no longer enough. In fact, the cloud-based cybersecurity market is expected to grow by approximately 21% per year for the next couple of years.

And the Santa Clara-based Palo Alto Networks isn’t standing pat. Nor is it allowing the competition to just move in. They have been expanding into cybersecurity solutions that are tailored for enterprise-level cloud-based computing. These include but extending beyond mere firewalls. And, the firm has also been investing heavily in artificial intelligence (AI) platforms.

These innovations allow their technology to identify and eliminate potential threats in real time. This is superior to waiting for data breaches to already have occurred before launching a defense.

Since its inception, Palo Alto has been quite a success story. They currently do work for 65,000 enterprise-level clients around the globe. These include many Fortune 500 companies. As a result, the stock has been one of the most consistent performers in the cybersecurity space.

Be cautious, though. The stock can be somewhat volatile. It has had some massive price swings. But after a steep 70-point dip in February, the stock is expected to climb back towards its one year high.

Is it finally stabilizing out? Perhaps. But, it’s also important to note that over the past year the cybersecurity stock has underperformed the S&P 500.

Crowdstrike Holdings Inc. (Nasdaq: CRWD)

Crowdstrike Holdings is a cybersecurity stock that offers its clients endpoint security, threat intelligence, and cyber attack response services. Crowdstrike’s clients include industries like finance, healthcare, and energy. High profile clients include Amazon Web Services (AWS), Goldman Sachs, and the Massachusetts Institute of Technology. They also have been running cybersecurity investigations for the United States government.
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In case you were wondering, endpoint security or endpoint protection is a specific cybersecurity practice. It attempts to inoculate remotely connected devices such as mobile phones, tablets, laptops and others, against cyber attacks.

The existence of these remote endpoints create convenient avenues of attack for hackers and bad actors. So, it’s important to protect them against such threats. Crowdstrike’s endpoint security works to make sure these devices are all following compliance standards.

Crowdstrike’s main platform is called the Falcon. It uses a cloud structure to protect endpoints using AI technology. This AI tech includes machine learning and other innovations. It unifies antivirus protection, endpoint detection and response (EDR), IT hygiene, managed threat hunting, and threat intelligence.

The company, which was founded in 2011, matured for eight years before its IPO. The stock has not faired well overall. After breaking $200 in December, the cybersecurity stock has tumbled slightly.

The company has seen very strong revenue growth over the last few years. And that is great reason for optimism. But, the bottom line about the bottom line is that this company is still likely far away from profitability. The company could be a solid longer term play if:

1 . Revenue growth continues to be robust and

2. The company is able to reign in some of the costs.
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Fortinet (Nasdaq: FTNT)

Another cybersecurity stock from sunny Sunnyvale, California, Fortinet creates and markets cybersecurity software, apps and service. Some of these include firewalls, endpoint security, intrusion prevention, and anti-virus programs.

The company’s security fabric includes security processors, an intuitive operating system, and applied threat intelligence. The approach provides a unified protective experience that is heavily automated. And, it also draws on the resources of artificial intelligence.
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Fortinet’s flagship enterprise firewall platform is called Fortigate. It works with a variety of similar products to simplify security infrastructure. The majority of Fortune 500 companies are customers.

And Fortinet’s stock has been nothing but a winner throughout its lifespan. Though some years have been better than others. And despite some volatility in the stock price, its upward trend has really picked up over the last two years.

It’s now trading around $170, climbing from around $150 at the beginning of the year. Fourth quarter financials showed nearly total revenue of $748 million. That’s 21% year-over-year. And the company touts a 29.4% operating margin, which is up 210 basis points since the previous year..

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CyberArk (Nasdaq: CYBR)

CyberArk is a cybersecurity stock that offers privileged account security. Their technology is mostly used by financial services, retail, healthcare and government clients.

A privileged account, such as an admin account, can be a major security weakness in an organization. This is because it can enable a negative actor to have full access to a company’s IT infrastructure. They could potentially disable security, steal confidential information, commit financial fraud and disrupt operations.

More than half of the Fortune 500 companies use CyberArk for cybersecurity.

CyberArk’s stock has seen a conspicuous rise so far this year. But it is currently trading below its 52-week high of $169.70. 

Third quarter financials looked very positive across the board. The company announced earnings of $144.52 million in the fourth quarter of 2020. That’s more than 12% higher that estimates. 

A Final Note on Cybersecurity Stocks

As far as tech goes, it’s a good bet that cybersecurity is only going to be an increasingly important slice of the pie. The opportunities for huge growth in cybersecurity stocks is there. Don’t leave yourself defenseless when the market starts to soar without you. Start watching these important stocks today.[/span] [/gated-content]