As the stock market witnesses a massive sell-off due to a variety of reasons, the technology sector has been among one of the hardest hit sectors of the market. As the bear market continues, the tech-heavy Nasdaq Composite has lost 28.8% year-to-date.
However, one of the technology segments, the cybersecurity industry, has survived the market turmoil relatively well thanks to the surging demand for cybersecurity solutions as firms pay big to be protected from cyber-attacks. Since the onset of the COVID-19 pandemic, the accelerated digital transformation and cloud migration have significantly exposed enterprises to these attacks.
Moreover, the Russia-Ukraine war has elevated the risk of Russian cyber-attacks on the rest of the world, thereby increasing opportunities for cybersecurity companies.
Given this backdrop, it would be wise to add cybersecurity stocks CyberArk Software Ltd. (CYBR), Rapid7, Inc. (RPD), Check Point Software Technologies Ltd. (CHKP), Qualys, Inc. (QLYS), and Palo Alto Networks, Inc. (PANW) to your watchlist ahead of their upcoming earnings releases.
CyberArk Software Ltd. (CYBR)
CYBR is a provider of IT security solutions that protects organizations from cyber-attacks. Its software solutions are focused on protecting privileged accounts from cyber-attacks.
On May 12, 2022, CYBR launched CyberArk Ventures, a $30 million fund to fuel innovative cybersecurity technologies. It has aligned with renowned investors: Venrock, YL Ventures, Team8 Capital, and Merlin Ventures to fund cybersecurity start-ups.
CYBR’s net revenues decreased 11.6% year-over-year to $112.76 billion for the first quarter ended March 31, 2022. The company’s gross profit declined 7.7% from its year-ago value to $91.83 million, while its net loss narrowed 59.8% year-over-year to $15.19 billion. Also, its loss per share came in at $0.39, representing a decrease of 58.5% year-over-year.
Analysts expect CYBR’s EPS for the June 30, 2022 quarter to decline to a negative $0.30 from a positive $0.01 a year ago. Its revenue for the current quarter is expected to increase 18.4% year-over-year to $138.82 million. It missed the Street EPS estimates in one of the trailing four quarters. The stock has lost 25.6% year-to-date to close the last trading session at $128.86.
CYBR’s POWR Ratings reflect its poor prospects. The POWR Ratings are calculated by considering 118 different factors, with each factor weighted to an optimal degree.
It has a D grade for Value and Momentum. Within the Software – Security industry, it is ranked #15 out of 29 stocks. Click here to see the other ratings of CYBR for Growth, Stability, Sentiment, and Quality.
Rapid7, Inc. (RPD)
RPD offers cyber security solutions through a cloud-native insight platform that enables customers to create and manage analytics-driven cyber security risk management programs. It offers its products through term or perpetual software licenses, cloud-based subscriptions, and managed services.
RPD’s total revenue increased 34% year-over-year to $157.38 million for its fiscal first quarter ended March 31, 2022. However, its adjusted EBITDA loss came in at $1.17 million compared to a $5.76 million loss in the year-ago period, while its non-GAAP net loss grew 549.8% year-over-year to $9.26 million.
Also, its non-GAAP loss per share came in at $0.16, representing a 433.3% year-over-year increase.
For the quarter ended June 30, 2022, analysts expect RPD’s loss per share to amount to $0.04 versus earnings of $0.03 a year ago. The company’s revenue for the quarter is expected to increase 29.8% year-over-year to $164.09 million. The stock has declined 41.6% year-to-date to close the last trading session at $68.74.
RPD’s POWR Ratings are consistent with this bleak outlook. It has an overall D rating, which translates to Sell in our proprietary rating system. The stock also has a D grade for Momentum and Sentiment. It is ranked #22 in the Software – Security industry.
To see the additional POWR Ratings for Growth, Value, Stability, and Quality for RPD, click here.
Check Point Software Technologies Ltd. (CHKP)
CHKP is a leading provider of cyber security solutions to corporate enterprises and governments globally. It offers network security, endpoint security, data security, and management solutions to enterprises, service providers, small and medium-sized businesses, and consumers.
On May 18, the company introduced malicious file protection for mobile devices. The new version of Harmony Mobile is expected to enhance CHKP’s mobile security solutions.
On May 17, CHKP partnered with Provision-ISR to provide on-device IoT security for video surveillance solutions. Analysts expect this solution to be…
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