(C) Reuters. 2 Top Cybersecurity Stocks to Scoop Up on Market Dips
We think the broader tech sell off has created an ideal opportunity to buy the shares of some solid cybersecurity companies at attractive prices because the demand for cybersecurity solutions is expected to boom in the near-term with cyber hack incidents on the ascent. So, it could be wise to scoop up the shares of VMware (NYSE:VMW) and Mimecast (NASDAQ:MIME) now because they are expected to advance in the coming months.The embrace of remote lifestyles and a rapid digital transformation amid the COVID-19 pandemic, among other factors, has fostered an increasing number of cyber-attacks given an increasing dependency on cloud computing. In fact, the recent, infamous Colonial Pipeline ransomware attack starkly highlighted the importance of advanced cybersecurity services. Investors’ interest in the cybersecurity sector is evident in the First Trust NASDAQ Cybersecurity ETF’s (CIBR) 17.3% returns over the past six months versus the tech-heavy Nasdaq’s 12.6% returns.
Of late, investors have been rotating out of tech stocks into cyclical stocks to take advantage of the economic recovery. Rising inflation has also been a major concern for investors as they drop expensive tech stocks. However, cybersecurity companies’ products and solutions are expected to be high in demand going forward. According to Grand View Research, the global cyber security market is expected to grow at a 10.9% CAGR between 2021 – 2028.
In this scenario, we think it is wise to bet on VMware, Inc. (VMW) and Mimecast Limited (MIME) because they appear to be a steal at their current price levels given their massive growth potential.
2 Top Cybersecurity Stocks to Scoop Up on Market Dips
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