As the world turns out to be progressively interconnected, it has become essential for businesses as well as government organisations to think more precisely about security. With time, hackers are finding new ways to breach into the company’s network and bringing them to their knees.
According to marketsandmarkets.com, revenue generated from the cyber security market reached $122.45 billion this year, and is projected to reach $202.36 billion by 2021, which signifies a compound annual growth rate of 10.6%.
Gigamon Inc. (GIMO, Financial) and CyberArk Software Ltd. (CYBR, Financial) look well poised to huge advantages bearing in mind the strong growth forecast of the cyber security market.
Gigamon
Since its IPO, Gigamon has been growing at a healthy rate. Over the past 10 quarters, the company’s revenue has been growing at an average 30% per quarter. Moreover, the company managed to beat analyst estimates on the bottom line in the past nine out of 10 quarters.
In the third quarter, the company reported EPS of 36 cents, beating the consensus estimates by 5 cents, whereas revenue came in at $83.51 million, surpassing the analyst estimates by approximately $4 million. Most importantly, that figure represents a surge of 47.4% year over year.
The company is primarily focusing on three core markets: mobility, security and the cloud. Currently, the security market is going through a significant transition phase, as large organisations are looking for platforms instead of point products to address the upcoming advanced threat challenges.
Nowadays, visibility platforms are considered as a necessity for detection and protection solutions. And, Gigamon holds a leading position in the visibility market, as its platform delivers noticeable value for its consumers.
CyberArk
CyberArk was up 16% over the previous year, and the stock is up 5% year to date. On the other hand, the company’s major rivals such as FireEye (FEYE) and Fortinet (FTNT) are still in the red this year.
In the second quarter, CyberArk reported a bottom line of 29 cents, 9 cents greater than the analyst estimates. The company’s revenue came in at $50.38 million, beating the estimates by $2.13 million and representing a surge of 38.5%.
The most significant thing to notice is that CyberArk is the frontrunner in the privileged account management market. The services offered by the company protect organisations from internal threats, such as disgruntled employees, by blocking the compromised computers before they impact the rest of the network.
Moreover, the company does not face tough competition in this particular market, as the majority of its rivals pays attention on external threats with next-gen firewalls as well as threat detection systems.
Conclusion
Both Gigamon and CyberArk are market leaders in the visibility market and PAM market, respectively, which makes them great picks. As a result, investors looking to profit from the cyber security market should consider buying Gigamon and CyberArk.
Disclosure: I do not hold positions in the stocks mentioned in the article.
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