4 Stocks to Watch From the Prospering Security Industry – September 8, 2022
The Zacks Security industry is benefiting from solid demand for cybersecurity offerings as well as the heightening need for secure networks and cloud-based applications amid growing hybrid working trends. Companies in this space are benefiting from the rising demand for IT security solutions owing to a surge in the number of data breaches. Increasing requirements for privileged access security on the back of digital transformation and cloud migration strategies are also fueling the demand for cybersecurity solutions.
Industry participants like Palo Alto Networks, Inc. (PANW – Free Report) , Fortinet, Inc. (FTNT – Free Report) , Check Point Software Technologies Ltd. (CHKP – Free Report) and Absolute Software Corporation (ABST – Free Report) are gaining from the aforementioned trends. However, the industry’s near-term growth prospects are likely to be hurt as organizations push back their investments in big and expensive technology products on growing global slowdown concerns amid the current macroeconomic challenges and geopolitical tensions. Supply-chain disruptions, component shortages, product cost inflation and a tight labor market are some of the headwinds that players in the space have been encountering lately. These, along with elevated operating expenses related to hiring employees and sales and marketing strategies to capture more market share, are likely to strain margins in the near term.
Industry Description
The Zacks Security industry comprises companies offering on-premise and cloud-based security solutions. The solutions can be used for identity access management, infrastructure protection, integrated risk management, malware analysis and Internet traffic management, to name a few. Industry participants offer different types of security solutions, most of which can be used interchangeably. These solutions can be roughly categorized into three types — Computer Security, Cybersecurity and Information Security. Computer Security solutions provide protection from vulnerabilities in both the software and hardware of a computer system….
