Current events affecting the stock market
Cybersecurity is a topic that is not being taken lightly in the present day. Recent developments indicate threats of modern acts of war and deadly attacks against the state’s most critical infrastructure: technology. The cyber arena has been the target of several Russian hacking efforts, including the attacks against SolarWinds (SWI, Financial), Colonial Pipeline, several federal banks, hospitals and other civic organizations. The sanctions imposed upon Russia by the Western world have caused U.S. banks to enter “brace mode” against the unknown scope of Russian hacking capabilities.
Private and government agencies alike are reacting to current threats of cyber conflict with preventative and enhanced cybersecurity solutions. Technology is relied upon to deliver an ever-increasing amount of many of our fundamental needs, and a breach in cybersecurity would be detrimental to the economy and to individuals. Protecting the world’s most crucial resources is necessary to prevent repercussions ranging from demoralization and power outages to grocery shortages and halts in energy sales.
On the positive side, current events have created undeniable investment opportunities with companies that are expected to report increased revenues thanks to heightened demand for cybersecurity solutions. Here are two cybersecurity companies to consider as demand for their services is expected to soar.
Hub Cyber Security
Hub Cyber Security (XTAE:HUB, Financial) was founded in 2017 by veterans of the 8200 and 81 elite intelligence units of the Israeli Defense Forces. Hub Security specializes in cybersecurity solutions and is known for its holistic software data-in-use encryption solutions. Its hardware and anti-tampering solutions are key to both government and private sector companies. The company has secured multiple prestigious clients, including the Pentagon, HSBC Holdings (HSBC, Financial) and Boeing (BA, Financial).
The Tel Aviv-based company is currently only traded in Israel, but it announced a special purpose acquisition company (SPAC) deal to become listed on the Nasdaq in early 2022, which was an expected next step following Hub's growth in revenues and notoriety during the previous year. Existing Hub shareholders expect that their position in the company, once restructured, will be greater than 75%. Leadership at Hub claims that the deal will help the company gain the necessary transparency and credibility to be considered in the Fortune 500 arena.
Recent worldwide developments and the announcement of the SPAC deal have had a positive effect on the company’s share value, and 16 analysts are recommending a "buy" rating for the stock.
Hub shares were valued at 5.86 New Israeli Shekels ($1.78) on March 7, which fell high in the 52-week range of â‚Ş2.81 to â‚Ş6. The company has a market cap of â‚Ş14.28 million and a five-year monthly beta of 1.71.
CrowdStrike
CrowdStrike (CRWD, Financial) is another cybersecurity solutions provider that is staying ahead of threats for their current and potential clients. CrowdStrike’s technology solutions prevent breaches with a cloud-first business. The company specializes in assisting enterprise customers move existing security protocols into the cloud era. CrowdStrike does business with 63 of the Fortune 100 companies as well as many well-known banks. The company attracts new business with numerous testimonials and case studies provided on their website.
The Austin, Texas-based company’s response to recent events as well as a strong business model have reflected well in CrowdStrike’s share price. A total of 33 Wall Street analysts rated the stock as a “buy” as of Feb. 24.
The share price as of the writing of this article stood near $173.62, which remains at the high end of the 52-week range of $150.02 to $298.48. CrowdStrike has a market cap of $39.45 billion.
Tenable Holdings
Tenable Holdings, Inc. (TENB, Financial) is a company whose core solution, Nessus, protects users from being exposed to cyber threats. Essentially, Nessus scans for vulnerabilities, and thus provides users with the ability to locate and seal weak points in their networks. Tenable also offers a line of software products, designed to let users see, predict, and act on specific network exposure weaknesses. Tenable’s products are used among other by Fortune 500 companies.
The share price as of the writing of this article stood near $54.8, which remains at the high end of the 52-week range of $35.32 to $57.70. Tenable has a market cap of $6.01 billion.
Final thoughts
These two cybersecurity stocks provide an opportunity for investors who are interested in the cybersecurity sphere. I believe CrowdStrike, Hub and Tenable are all worth keeping an eye on this month as worldwide cybersecurity needs are emphasized. Of the three, I personally prefer Hub. The recent activity has avoided the same volatility seen within the industry and continues to make a steady upward climb towards a record high value. I remain strong in my prediction that cybersecurity is going to be a focus worldwide, as leaders fear cyberattacks in further retaliation from Russia.
