15 Cybersecurity Stocks to Watch As the Industry Heats Up
These cybersecurity stocks are among the hottest names in the industry and they have the greatest potential
By Luke Lango, InvestorPlace Contributor
Aug 21, 2018, 3:39 pm EDT
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Cybersecurity Stocks to Watch: Zscaler (ZS)
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Freshly public and relatively small, Zscaler (NASDAQ: ZS) is one of the most exciting and risky cybersecurity stocks on this list.
Zscaler went public at $16-per-share in March. The IPO was a huge success. ZS stock doubled in its first day of trading, closing at $33. The momentum hasn’t really stopped. Today, ZS stock is around $40.
The hype makes sense. Zscaler is a cloud security company with nearly 3,000 customers, a huge international presence, 50%-plus revenue growth and 80%-plus gross margins. The company is disrupting a huge, nearly $20 billion cloud and mobility market, and revenues last year were just $126 million.
Thus, the long-term growth narrative supporting ZS stock is quite promising. But, this is nearly a $5 billion company that is expected to do under $200 million in sales this year, so the stock is trading at a rather huge 25X-plus sales multiple. That isn’t a risk-off investment. As such, ZS is the high-risk, high-reward name in this cybersecurity bunch.
As of this writing, Luke Lango was long HACK, PANW, FTNT and PFPT.
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