Cyber threats continue to evolve over time, with state-sponsored groups and other organizations harnessing the power of artificial intelligence (AI) to potentially bypass even the most secure systems. In fact, the stakes in establishing best-in-class cybersecurity defenses have never been higher, and they will become even more so as the technology landscape changes and more is at risk (more than just customer data). may increase.
Generative AI, blockchain, and the metaverse may be the hottest topics in technology investment, but I argue that it would be a mistake to leave cybersecurity out. I believe cybersecurity measures stand out as one of the most defensive ways to achieve the next level of growth. Even as the frequency, scope, and severity of breaches increase and budgets tighten, cyber defense is an absolute necessity.
Therefore, let's use TipRanks Comparison Tool to Consider Three Cybersecurity Strategies Wall Street remains positive for 2024.
Microsoft is not only a major player in the generative AI race; This is exactly what we do in cybersecurity with Microsoft Security Copilot. In fact, many Windows OS users may have foregone the purchase of third-party security software and opted for Microsoft's own security essentials.
For the most part, Microsoft's foothold in cybersecurity is impressive. However, after Microsoft's own security was compromised by Russian hackers, questions remain as to whether this giant company can remain a reliable player in the cybersecurity scene. Despite the hack, I remain bullish on Microsoft's ability to weather this latest crisis.
As you can imagine, it's very embarrassing for a cybersecurity solution provider to be compromised by a hacker. The company is inevitably on the defensive, but one thing is clear: recent infringements are not good for investors and customers. The real risk is that this breach could prompt Microsoft's cybersecurity customers to pursue alternative cybersecurity solutions. Either way, I expect Microsoft to bounce back from its recent cybersecurity missteps.
As it turns out, Russian hacker groups are incredibly sophisticated, so much so that Microsoft could probably be the first of many giants to hit them. Either way, this breach shines a very bright light on the importance of not only implementing acceptable cybersecurity solutions, but the best on the market.
The cybersecurity breach hasn't had much of an impact on MSFT stock, which remains just shy of all-time highs. Nevertheless, I expect more benefits to come from AI rather than cybersecurity in the future.
What is the target price for MSFT stock?
Microsoft stock is a “strong buy” according to analysts, with 36 buys and 1 hold assigned in the past three months.of MSFT average target price $434.21 means an upside potential of 9.8%.
CrowdStrike stands out as one of the gold standards when it comes to cybersecurity software, especially in modern times. Over the past year, the stock has soared more than 180%. The recent parabolic wave has pushed the stock to all-time highs, and I'm not willing to bet against the company as it looks to gain share in the booming cybersecurity market.
Considering the ecosystem of cybersecurity protection products after the Microsoft hack, I would argue that CrowdStrike stands out as a potential share gainer. I can't help but remain bullish, even though the stock has been significantly higher in recent quarters.
WestPark Capital recently downgraded CRWD's stock rating from buy to hold due to its top concern. Although the stock price fell following the downgrade, it did not take long for the stock price to resume its impressive rise. CRWD stock may be hard to stop in its tracks at this point as it looks to win business from customers who are starting to fully grasp what's at stake by being stingy with their cybersecurity spending. .
At 24.5x price-to-sales (P/S), CRWD is starting to get expensive again in its historical price range. However, I believe the premium is justified considering the company's “core” products and the cybersecurity landscape that is becoming even scarier in the age of AI. At this point, I consider his CRWD stock to be my favorite in the pure cybersecurity space.
What is the target price for CRWD stock?
CrowdStrike stock is a strong buy according to analysts, with 37 buy and 2 hold assignments over the past three months. Nevertheless, CRWD average target price $291.00 means 1.6% downside.
Palo Alto Networks (NASDAQ:PANW)
Speaking of parabolic moves, check out Palo Alto Networks stock. The company is also capitalizing on the increased enthusiasm for cybersecurity stocks in recent months. The stock price has increased more than 130% in the past year. With a market capitalization of $109 billion, PANW is a leading player in the industry and could use its size to gain market share over its competitors.
As a relatively large company, Palo Alto has the money to pour into dramatically improving its endpoint cybersecurity products. That's why I'm incredibly bullish on PANW stock, even after its breathtaking rally.
Morgan Stanley (New York Stock Exchange:MS) recently beat out the Palo Alto table and named it a top pick in the cybersecurity scene. Looking to 2024, the bank believes rising demand will further boost industry profits, and it has an attractive price target on PANW stock of $395.00 (implying a 15% upside from current levels). are doing). I think Morgan Stanley is within its rights to continue supporting PANW, especially if the Microsoft incident is followed by more headline-grabbing breaches throughout the year.
Like CrowdStrike, the stock's valuation has expanded significantly during a wild bull market, and the stock currently trades at a P/S of 16.2x. It's hard to chase a stock that's already on a parabolic trajectory, but PANW stock is worth considering even if you lack exposure to cybersecurity.
What is the target price for PANW stock?
Analysts say Belbring stock is a “strong buy,” with 30 buys and 3 hold assignments over the past three months.of PANW average target price $334.19 means there is 2.7% downside.
Despite the heat to new highs, it makes sense to keep top cybersecurity stocks at the top of your watchlist in a year where cyberattacks can make more headlines than the latest AI innovations. I still believe that it is true. The Microsoft hack was shocking news to start the year, but it may not be the last major breach we'll see as the year ends.
At the time of writing, analysts expect Microsoft (9.8%) to see the biggest increase over the next 12 months. I agree. Probably the best purchase I've made so far.