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4 Cybersecurity Stocks Beating the CIBR ETF

These stocks have outperformed over the past 12 months

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Apr 01, 2022
Summary
  • The ETF stands out because of its diversified portfolio of companies and the weighting techniques used.
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The First Trust Nasdaq CEA Cybersecurity ETF (

CIBR, Financial) is a specialized fund, or exchange-traded fund, that tracks the value of companies that are classified by the Consumer Technology Association as cybersecurity companies. The specialized fund is made up of companies operating in the software and networking industries as well as other industries like defense and aerospace.

The ETF is stands out because of its diversified portfolio of companies and the weighting techniques used. It weighs holdings by liquidity and caps the weighting of the securities of the five most liquid companies at 6%.

CIBR

Market Cap

--

Previous Close

$53.22

EPS (ttm)

--

Volume

1.23 million

Average Volume

1.41 million

Shares outstanding

--

52-week high

$56.58

52-week low

$41.40

1509988089685155840.png

TradingView chart at March 29, 2022.

Currently trading at $53.70, the ETF performs well on the stock market, but for those who want a stronger return not weighed down by underperformers in the fund, here are four individual cybersecurity companies that are earning the attention of analysts and investors for outperforming the ETF. The chart below shows the performance of the Cybersecurity ETF and Palo Alto Networks Inc. (

PANW, Financial), Hub Security, Nice Ltd. (NICE, Financial) and Check Point Software Technologies Ltd. (CHKP, Financial). All four of these stocks have outperformed the ETF over the past 12 months and, with the exception of Nice (which is down this month), continue to do so.

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TradingView chart on March 31.

Palo Alto Networks

Palo Alto (

PANW, Financial) is listed as the third-best-performing stock within the ETF. The stock recently surpassed the average analyst 12-month target price of $609.03. Analysts predict the target price will be revalued higher and that shares of Palo Alto Network will continue increasing in value toward the new target price of $629.42.

The company has 8.1 million shares in the U.S. ETF market. First Trust Nasdaq Cybersecurity is currently the top-performing ETF that holds the stock, but Palo Alto outperforms the fund.

PANW

Market Cap

$60.72 billion

Previous Close

$625.25

EPS (ttm)

$-4.74

Volume

2.51 million

Average Volume

2.23 million

Shares outstanding

$248.49 million

52-week high

$1.65

52-week low

35 cents

The stock is currently valued at $625.25, with 94.48 million shares outstanding. Fourteen analysts recommend the stock as a strong buy, while 23 other analysts consider the stock a buy.

1509988095305523200.png

TradingView chart on March 29.

Check Point Software Technologies

Check Point Software Technologies (

CHKP, Financial) is a holding in 82 U.S.-traded ETFs and has close to 5.2 million shares in the U.S. ETF market. The stock was given a target price of $133.18 target price from brokerage analysts. CIBR is also the best-performing ETF for Check Point, but again, the stock outperforms the fund.

CHKP

Market Cap

$18.49 billion

Previous Close

$138.37

EPS (ttm)

$6.1

Volume

1.45 million

Average Volume

1.71 million

Shares outstanding

132.80 million

52-week high

$149.62

52-week low

$107.85

Shares of Check Point are currently trading at $139.23. Seven brokerages have rated the stock as a buy, which brings analysts’ recommendations to an average rating of hold.

1509988096626728960.png

TradingView chart as of March 29.

The average 12-month target price for shares of Check Point Software has been updated to $132.92. The 52-week range of the stock is $107.85 to $149.62.

Nice

Nice (

NICE, Financial) is a cybersecurity and technology system company out of Israel. The company’s stock was outperforming the ETF until earlier this March and is expected to continue that trend soon. The 12-month target price for Nice shares is set at $327.22 by analysts.

NICE

Market Cap

$14.10 billion

Open

$227.76

EPS (ttm)

$2.97

Volume

384.74 million

Average Volume

307,680

Shares outstanding

63.12 million

52-week high

$319.88

52-week low

$199.32

The current share value of Nice is $224.70, which sits at the low end of the 52-week range. The stock shows a three-year earnings per share growth rate of $6.44, which indicates growth potential for investors.

1509988098094735360.png

TradingView chart on March 29.

Hub Security

HUB Security (

XTAE:HUB, Financial) develops confidential computing cybersecurity solutions and associated services. Earlier this month, the company announced it had agreed to be acquired by special purpose acquisition company Mount Rainier Acquisition Corp. (RNER, Financial). The $1.3 billion deal is expected to be finalized in the third quarter of 2022 and will position Hub Security as an industry leader. The company will be listed on the Nasdaq under the ticker “HUBC.”

The company has performed well on the Tel Aviv Stock Exchange. Hub Security shares have been volatile with a 52-week range of $281.10 to $929.90. The volatility of the stock has encouraged investors on the potential upswing of the stock value.

HUB

Market Cap

$14.942 million

Open

$460

EPS (ttm)

19 cents

Volume

2.68 million

Average Volume

703,000

52-week high

$281.10

52-week low

$929.90

Hub Security is succeeding in a rapidly growing market of cybersecurity, which is expected to reach $54 billion by 2026. Revenue at the company continues to increase year after year. The strategic acquisition with Mount Rainier will expedite growth for Hub Security. The company's expected growth and the 2022 acquisition increase its investment potential. Share values have consistently increased throughout the month of March, so continuous upside movement is likely.

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TradingView chart on March 29.

Bottom line

The Cybersecurity ETF is a specialized fund which offers investors a group of companies within the cybersecurity industry. The fund’s market value and activity differ from the individual companies within the fund.

Palo Alto and Check Point Software are included in the fund, but their performance beat that of CIBR. Hub Security also exceeds the performance of the ETF. SPAC deals, like that of Hub Security, have the power to influence market value in a positive direction. As the deal is executed, Hub may have the strongest upside potential of the four. Nice is currently underperforming, but is a value buy at the current price and is expected to beat the ETF again soon.

Disclosures

I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours. Click for the complete disclosure
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