These are the six stocks to watch in the red-hot cybersecurity sector

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OPINION: Global spending on information security and risk management services will top $150 billion, consulting firm Gartner estimates. Here are a few entrenched stalwarts and hungry upstarts to watch, columnist JeffReevesIP writes.

As with many areas of the economy, enterprise technology spending was hurt by the Covid-19 pandemic. According to consulting firm Gartner, worldwide IT spending declined 3.2% last year to mark a rare rollback in this category.

Here’s a look at a few entrenched stalwarts and a few hungry upstarts to watch in the cybersecurity space, and their outlook for the future in this high-growth area. Admittedly, there’s a lot to like about this stock right now. But it’s hardly alone, as you’ll see from other names on this list. In fact, analysts at Morgan Stanley recently sounded a warning about how the increasing pressures of competition could post a risk. That said, in the near-term its hard to argue with either the share price or fundamentals of this leader.

Investors need to expect volatility, as evidenced by plenty of ups and downs in share price over the past few years. That said, when things move in the right direction it can really pay off — as it has since spring, when CYBR stock nearly doubled from about $105 at their 52-week low to current levels around $200 per share.

Upstart: SailPoint Though classified here as an upstart because of its size or general name recognition with most investors, SailPoint Technologies Holdings Inc. SAIL, -1.11% has operated since 2004 and in some ways is running just a half-step behind some of the biggest cybersecurity companies.

 

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