January 5, 2022
Hello everyone,
Happy New Year to you all.
Another year is upon us and I’m sure we have all made plans to save money, eat healthy, exercise more, learn something new, spend time with friends and family, etc.
I didn’t.
I don’t make New Year's resolutions anymore.
I got wise.
There are people out there making a fortune on your willingness to achieve each resolution but all too often, the desire fades after the first month or two.
So, instead, I just plan on being a better version of myself each year. That takes all the pressure off. Phew!!
So, what’s ahead this year?
Hawaii strategy luncheon on February 17, 2023
Queen Mary II strategy update on July 13 while you enjoy a transatlantic crossing.
Go to Luncheons on John’s site to book.
Sounds good to me.
At the beginning of the year, it is natural to reassess what is in your portfolio and what is not.
So, I always ask this question. What does everyone need the most outside food, water, and shelter?
Security.
In other words, protection against the myriad of ways criminals invade the privacy of your life.
Here, I’m particularly talking about cyber security. The thought of my computer being hacked, or my identity being stolen is enough to keep me wide-eyed all night.
Therefore, I’m going to list the top cybersecurity stocks that you should be watching. Please make sure at least a couple are in your portfolio.
These cybersecurity companies provide critical support and services to businesses that operate online and through electronic communication networks.
1. Zscaler (ZSUS)
2. Fortinet (FTNT)
3. Palo Alto Networks (PANW)
4. CrowdStrike (CRWD)
All these security companies specialise in a different area of security. Basically, they all focus on safeguarding data and systems from unauthorised users.
As more and more companies move online, there is an increasing threat from cybercriminals. Let’s take a closer look at the four listed above.
1. Zscaler (ZSUS)
Zscaler was founded in 2007 and became a publicly traded cybersecurity company in 2018. It’s now listed on the Nasdaq and in 2022 had a market cap of more than $25 billion with more than 100 data centres around the world, serving customers in 185 countries.
ZSUS is an authorised partner for Microsoft Office 365 and more than 450 companies on the Forbes 2,000 list use Zscaler.
In the last four quarters, Zscaler achieved revenue of more than $125 million. In the last quarter, revenue was up 60% year on year at $176.4 million.
Presently, they are a company that is focused on growth rather than profitability. In other words, they are continually pouring money into marketing, growth, and acquisition – a clear, long-term strategy.
2. Fortinet (FTNT)
Fortinet is one of the oldest cybersecurity companies and has been around since 2000, achieving a market cap of more than $35 billion. The company develops and sells a whole range of different cybersecurity products and services. This includes firewalls, anti-virus protection, endpoint security components, and much more.
An increase in revenue and increased forward guidance were reported in the company’s most recent earnings announcement. They have also taken part in an aggressive expansion plan with more than 65 deals last year, including a $75 million investment into Linksys.
3. Palo Alto Networks (PANW)
Palo Alto Networks is a multinational cybersecurity company that was founded in 2005. Last year, revenues topped $3 billion as the company services 70,000 businesses in more than 150 countries. The company was listed eighth in the Forbes Digital 100 list, and they count 85 companies of the Fortune 100 list as a client.
The main focus of products offered by the company revolves around network security, advanced firewalls, cloud security, and endpoint protection among other niches. PANW also operates Unit 42 which is an advanced threat intelligence team focused on finding new cyber threats and working with the FBI.
Shareholder returns are very good, and the company also has an excellent track record of consistent sales. The uptrend in the stock has accelerated since the lows of the pandemic in 2020.
4. CrowdStrike (CRWD)
CrowdStrike was founded in 2011 and focuses on proactive and incident response services. Its products include cloud systems for threat intelligence, endpoint security, and more. The company, with a former FBI official as one of its founders, has been active in the cyber-attacks of Sony Pictures in 2014 and the Democratic National Committee (DNC) in 2016.
Analysts believe the company still has huge growth potential as it can tap into international markets.
Since the company’s (IPO) launch in 2019, it has already become a market leader in the cybersecurity space. CrowdStrike is well-positioned to meet the issues faced by businesses today. Dealing with threats when they come is no longer viable. Companies must build the right infrastructure to mitigate threats in the first place. We just need to think about Medibank Private to know how important the right infrastructure really is.
CrowdStrike shines as a cloud-based platform. Its stock price is trading much higher than when it first launched in 2019. It is one to watch this year.
Ransomware demands amounted to nearly $20 billion last year. There is now huge pressure on companies to build the right infrastructure and systems before the threat.
The growth potential for cybersecurity stocks is now very interesting. It is not hard to see why investors are keen to focus on this sector and the companies leading the race forward.
Now, which one will I choose…
On Friday I will summarize John’s All Asset Class look at 2023.
You’ll get to see what’s in favour and what’s not.
May 2023 bless you with all you desire.
Cheers,
Jacque
“The big lesson in life, baby, is never be scared of anyone or anything.” - Frank Sinatra
“Do all the good you can, for all the people you can, in all the ways you can, as long as you can.” - Hilary Clinton (inspired by John Wesley quote).
Those of you who have received Jacque's Post for the last two years have been getting it for free. However, in this inflationary world, ever high bills have to be met and colleges paid for. So, I am asking you to chip in a modest $170 to continue your subscription for the coming year. Just click here and complete the form.
If for some reason the link doesn't work, please google Mad Hedge Fund Trader to get to our main site, click on the Store tab at the top, and click on the blue BUY NOW tab for Jacque's Post.
Many thanks for your support and I look forward to working with you for another year.
Jacque
