Now that Russia has invaded Ukraine, the threat of cyber-attacks from Russian hackers has intensified. Many are concerned regarding Russian retaliation for sanctions. Nevertheless, Russian hackers were already notorious for attacking companies’ networks demanding ransomware. Consequently, a cottage industry has rapidly formed and has been growing sales and very rapid rates.

A subscriber who goes by the initials AL made this request and provided an interesting perspective as follows: “Could you consider doing a video on cybersecurity stocks? I thought that might be quite pertinent in these times. It would be fascinating to see what is out there as I suspect a lot of them will be overvalued.” He specifically asked about these 5 companies: “CRWD NET PANW CHKP ZS” and after a little research I expanded it to what many consider the top 10.

Moreover, I also included Microsoft the 800-pound gorilla in technology that is also becoming very active in cybersecurity. According to a recent announcement, Microsoft suggested that they have already done $10 billion in sales in this area. I do not know if it will be enough to move the needle, but if Microsoft can be purchased at a reasonable valuation the cybersecurity portion would be an added benefit.

Finally, I am not an expert in this sector and therefore suggest conducting your own comprehensive research and due diligence. Therefore, I am only offering an introductory perspective on these cybersecurity companies through the lens of FAST Graphs. However, I do recognize the growth potential and believe this is an industry that is here to stay. The trick is to get in at attractive valuations. Right now, based on conventional measurements, most of the stocks are as AL suspected, very richly priced. Caveat emptor!

Rapid7 Inc (RPD), Tenable Holdings (TENB), Sentinelone (S), NortonLifeLock (NLOK), Check Point Software Technologies (CHKP), Zscaler Inc (ZS), CloudFlare Inc (NET), CrowdStrike Holdings (CRWD), Fortinet Inc (FINT), Palo Alto Networks Inc (PANW), Microsoft (MSFT).

FAST Graphs Analyze Out Loud Video:

— Chuck Carnevale

Source: FAST Graphs