FTNT: 3 Security Companies Guarding the Digital Business From Threats

FTNT: 3 Cybersecurity Stocks Guarding the Digital Economy From Threats

A surge in the implementation of surveillance systems has been attributed to the increasing number of illegal events, violence, and fraudulent activities around the world, as well as stricter government regulations. Therefore, investors could consider buying cybersecurity stocks, such as CyberArk Software Ltd. ( CYBR ), Fortinet, Inc. (FTNT ), and Tenable Holdings, Inc. ( TENB).

Organizations are increasingly reliant on cloud services for their businesses and information administration because of the growing volume of data generated and the increasing complexity of the technologies. The demand for cloud protection options is rising as a result of this rise in cloud services deployment.

Additionally, the need to protect sensitive data and the increasing complexity of cyberrisks are compelled by organizations to invest in solid cloud security solutions, making it a necessary component of contemporary electronic infrastructure. Therefore, the global cloud security software market is expected to grow at a&nbsp, CAGR of 17.4 % by 2033.

Considering the company’s suitable styles, let’s examine the fundamentals of the three stock picks, beginning with the second option.

Stock# 3: CyberArk Software Ltd. ( )

CYBR develops, areas, and sells software-based personality security solutions and services in the United States, Europe, the Middle East, Africa, and abroad.

On January 30, 2025, CYBR released Identity Bridge, an endpoint personality safety feature that reduces pleasure and identity theft on Linux systems. Identity Bridge would reduce reliance on antiquated authentication techniques by allowing businesses to verify to Linux systems through unified accounts.

Organizations will now have a unified, comprehensive view of their entire identity security landscape, allowing quicker, more effective threat response and containment, with the release of a new integration between CyberArk Privileged Access Manager ( PAM ) and Microsoft Defender for Identity on January 15, 2025.

In terms of the trailing-12-month gross profit margin, CYBR’s 81.07 % is 61.5 % higher than the 50.19 % industry average.

CYBR’s total revenue for the fiscal third quarter ended September 30, 2024, increased 25.6 % year-over-year to$ 240.10 million. Its non-GAAP gross profit was$ 200.33 million, up 26.7 % year-over-year. Additionally, its non-GAAP net income and net income per share were$ 45.14 million and$ 0.94, respectively, reflecting 130.2 % and 123.8 % increases compared to the prior-year quarter.

Street expects CYBR’s revenue for the quarter ended December 31, 2024, to increase 35.1 % year-over-year to$ 301.47 million. Its for the quarter ending March 31, 2025, is expected to grow 2.6 % year-over-year to$ 0.77. In each of the preceding four quarters, it overtook the discussion estimates.

The last trading session ended with a price of$ 370.98, up 59 % over the previous year for CYBR’s stock.

CYBR’s reflect its powerful view. The property has a B overall ranking, which is expressed in our proprietary ranking algorithm as Buy. The 118 various factors are taken into account when determining the , with each aspect being optimally weighted against one another. &nbsp, &nbsp,

It is ranked# 9 out of 20 stocks in the <a href="https://stocknews.com/category/software-security/”>Software – Security sector. It receives an A for Development and a B for Sentiment and Quality. In addition to the POWR Ratings levels I’ve only highlighted, you can see CYBR’s scores for Value, Stability, and Momentum <a href="https://stocknews.com/stock/CYBR/”>here.

Stock# 2: Fortinet, Inc. ( )

Worldwide, FTNT offers merged networking and security solutions in the fields of security and converged networking. It offers secure communication solutions focused on integrating networking and security, including community network options, FortiGate data center, hyperscale, distributed firewalls, encrypted applications, wireless LAN solutions, and stable communication solutions.

On December 3, 2024, FTNT launched FortiAppSec Cloud, a unified online software security and performance system. It integrates API security, app security, and load balancing, streamlining surveillance and control for combination and multi-cloud conditions.

In terms of the trailing-12-month Return on Common Equity margin, FTNT’s 311.53 % is significantly higher than the 4.60 % industry average. Similarly, its 28.86 % trailing-12-month levered FCF margin is 151 % higher than the 11.50 % industry average. Additionally, its 26.79 % trailing-12-month net income margin is 556.1 % higher than the 4.08 % industry average.

For the third quarter ended September 30, 2024, FTNT’s total revenue increased 13 % year-over-year to$ 1.51 billion. Its non-GAAP operating income rose 46.7 % from the year-ago value to$ 544.70 million. During the same period, the company’s non-GAAP net income and non-GAAP net income per share grew 50.7 % and 53.7 % to$ 487.60 million and$ 0.63, respectively.

Analysts expect FTNT’s EPS and revenue for the quarter ended December 31, 2024, to increase 19.1 % and 12.8 % year-over-year to$ 0.61 and$ 1.60 billion, respectively. In each of the preceding four rooms, it overtook the discussion EPS estimates. Over the past six months, the stock has gained 73.8 % to close the last trading session at$ 100.88.

In our custom rating system, FTNT has an entire B rating that corresponds to a Buy. FTNT receives an A for Quality and a B for Sentiment.

It is ranked# 6 in the same market. To observe FTNT’s Development, Stability, Value, and Momentum score, <a href="https://stocknews.com/stock/FTNT/”>click here.

Stock# 1: Tenable Holdings, Inc. ( )

TENB provides digital contact options in the Americas, Europe, the Middle East, Africa, the Asia Pacific, and Japan. Additionally, the company offers Nessus, a risk assessment tool for the business software and security industry, and Nessus Expert, a automatically detect cloud infrastructure misconfigurations and vulnerabilities in the design and construction phases.

Tenable Patch Management, an autonomous patch solution created to quickly and effectively resolve vulnerability exposures in a single solution, was released on December 4 from TENB. The solution addresses the crucial issues of vulnerability remediation, which was developed through a strategic partnership and integration with Adaptiva.

By examining the most harmful vulnerabilities across various environments, it shortens the time from discovery to remediation. It also offers features like autonomous patching, which streamlines discovery to remediation, and customizable controls that prevent problematic updates.

TENB’s trailing-12-month gross profit margin of 77.55 % is 53.6 % higher than the 50.50 % industry average. Its trailing-12-month levered FCF margin of 21.70 % is 88.7 % higher than the industry average of 11.50 %.

During the third quarter that ended September 30, 2024, TENB’s revenue increased 12.7 % year-over-year to$ 227.09 million. Its non-GAAP gross profit was$ 184.82 million, up 14.2 % year-over-year. Also, the company’s non-GAAP income from operations rose 23 % from the prior-year quarter to$ 44.98 million.

Furthermore, the company’s non-GAAP net income and non-GAAP EPS of$ 39.32 million and$ 0.32 reflects growth of 42.1 % and 39.1 % from the prior year’s quarter, respectively.

For the fourth quarter ended December 2024, analysts expect TENB’s revenue to increase 8.8 % year-over-year to$ 232.02 million. For the same quarter, the company’s EPS is expected to grow 37.8 % year-over-year to$ 0.34. Additionally, the business exceeded the company’s consensus estimates for revenue and EPS in each of the four trailing quarters.

TENB’s stock increased 9.4 % to close the most recent trading session at$ 43.09.

TENB’s bright prospects are apparent in its POWR Ratings. The stock has a B overall rating, which is a Buy in our proprietary rating system.

TENB has an A grade for Growth. It is ranked# 5 in the same industry. &nbsp,

Beyond what is stated above, we’ve also rated TENB for Momentum, Stability, Sentiment, Value, and Quality. Find out the complete TENB rating <a href="https://stocknews.com/stock/TENB/”>here.

What To Do Next?

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FTNT shares were trading at$ 100.78 per share on Monday afternoon, down$ 0.10 (-0.10 % ). Year-to-date, FTNT has gained 6.67 %, versus a 2.33 % rise in the benchmark S&amp, P 500 index during the same period.

About the Author: Nidhi Agarwal

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Nidhi’s passion for wealth management and the capital market led her to pursue a career as an investment analyst. She is pursuing the CFA program while pursuing a bachelor’s degree in finance and marketing. Her fundamental method of stock analysis helps investors pick the best investment opportunities.

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