(C) Reuters. Buy the Dip in These 4 Cybersecurity Stocks
The demand for advanced cybersecurity solutions is expected to increase in the coming months in response to an increase in cybercrimes. So, we think it is wise to bet on Check Point (CHKP), NortonLifeLock (NASDAQ:NLOK), TrendMicro (TMICY), and Radware (NASDAQ:RDWR) because these stocks are trading way below their 52-week highs but have the potential to rebound in the near-term. Read on.An increasing dependence on cloud computing and the digitization of many work tasks has spurred a rapid rise in cybercrimes. The recent, infamous Colonial Pipeline ransomware attack and the SolarWinds cyber hack back in December 2020 highlight the importance of advanced cybersecurity solutions. Investors’ interest in the cybersecurity space is evident in the First Trust NASDAQ Cybersecurity ETF’s (CIBR) 15.2% returns over the past six months versus the tech-heavy Nasdaq’s 12.9% returns.
Rising inflation and Treasury yields have been motivating investors to rotate away from expensive tech stocks, including several cybersecurity stocks, causing these stocks to suffer price dips. However, because the world is becoming increasingly reliant on digital work applications, the demand for cybersecurity solutions is expected to increase exponentially in the near-term. Indeed, according to Grand View Research, the global cyber security market is expected to grow at a 10.9% CAGR between 2021 and 2028.
Against this backdrop, we think it is wise to bet on Check Point Software Technologies Ltd. (NASDAQ:CHKP), NortonLifeLock Inc. (NLOK), Trend Micro Incorporated (OTC:TMICY), and Radware Ltd. (RDWR) because the dip in their share prices creates a perfect buying opportunity. These stocks are expected to generate significant returns in the coming months based on their innovative products and services.
Buy the Dip in These 4 Cybersecurity Stocks
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