3 Top Cybersecurity Stocks to Buy Now Amid Rising Threats

CyberArk Software (CYBR) and Broadcom (AVGO) are two cybersecurity stocks that have seen positive price action following the ToolShell exploit chain. CyberArk offers privileged access management solutions to over half of Fortune 500 companies, while Broadcom acquired Symantec's division in 2019 and offers endpoint security solutions. Both companies have reported strong Q1 revenue growth, with CyberArk's revenue increasing 43% to $318 million and Broadcom's infrastructure software growing 47% year-over-year to $6.7 billion.

In the wake of the recent ToolShell exploit chain targeting on-premises Microsoft SharePoint servers, two cybersecurity stocks, CyberArk Software (CYBR) and Broadcom (AVGO), have seen positive price action. This exploit, which allows attackers to gain full remote control of servers without human intervention, underscores the growing importance of cybersecurity in the digital age.

CyberArk Software, an Israeli company, specializes in privileged access management solutions. Over half of Fortune 500 companies and approximately 35% of the Global 2000 rely on CyberArk to secure their credentials. The company's solutions portfolio includes Privileged Access Manager, Privilege Cloud, Endpoint Privilege Manager, and Secure Cloud Access, all unified under an identity security platform. CyberArk's Q1 revenue increased by 43% to $318 million, with subscription sales growing by 60% year-over-year. The company's annual recurring revenue crossed the $1 billion mark for the first time, with 85% of that total coming from subscriptions [1].

Broadcom, a chip designer that also operates as a cybersecurity company, acquired Symantec's division in 2019. Its Endpoint Security Complete is now a popular choice for enterprises running virtual machines like VMware. Broadcom's infrastructure software grew by 47% year-over-year to $6.7 billion in Q1. The company guided to $15.8 billion of revenue for Q3, up 21% year-over-year, with AI-driven security expected to be one of the two main growth vectors alongside custom AI accelerators. Free cash flow is already running at more than $6.4 billion per quarter, and management returned $7 billion to shareholders through buybacks and dividends last quarter alone [1].

Both companies have reported strong revenue growth, indicating that investors are taking notice of their cybersecurity solutions. However, it is essential to remember that the cybersecurity landscape is constantly evolving, and new threats are emerging regularly. As such, investors should closely monitor these companies' performance and the broader cybersecurity market.

References:
[1] https://www.barchart.com/story/news/33666833/3-top-cybersecurity-stocks-to-buy-now