The cybersecurity industry is forecast to grow at a 14.56% CAGR during 2021-2026. Here are three cybersecurity stocks to buy to ride the trend: Cisco Systems, Juniper Networks, and Splunk.
Cybersecurity stocks are attractive to investors due to the high CAGR expected in the next five years and new trends triggered by the COVID-19 pandemic. Take remote work, for instance. It is here to stay, and it requires more people to be connected online than ever.
As such, to mitigate cyber threats, organizations and corporations need to invest more in cybersecurity in the years ahead. The industry is expected to grow at a CAGR rate of 14.56% in the next five years.
So what are the best cybersecurity stocks to buy amid such trends? Here are three names to consider: Cisco Systems, Juniper Networks, and Splunk.
Cisco is one of the biggest players in the communications equipment industry. Based in San Jose, California, it employs close to 80,000 people and sells Internet Protocol-based networking products, among other things.
Few investors are aware that Cisco is a dividend-paying company. It grew the dividend for the past 10 consecutive years, and the payout ratio is 44.82%. Moreover, the forward dividend yield of 2.68% makes the stock attractive.
Cisco’s stock price is up 13.08% in the last twelve months, and the company operates with a gross profit margin of 63.73%, higher than the sector median by 25.53%. Valuation looks attractive too if we consider the P/E Non-GAAP (TTM) lower than the sector median by -22.88%.
Juniper Networks is another company from California operating in the communications equipment industry. It employs a little more than 10,000 people, and it was founded in 1996. Just like Cisco, it focuses on network products.
Its stock price outperformed its peers in the last 12 months – up 38.81%. Moreover, Juniper Networks pays a dividend. The 5-year growth rate is 14.87%, and the forward dividend yield is 2.42%. Juniper’s gross profit margin exceeds the sector median by 15.84%.
Splunk is the smallest of the three, at least when it comes to the number of people employed – 6,500. It focuses on software and cloud solutions, and it is based in California.
Splunk does not pay a dividend, but it operates with the highest gross profit margin of the three companies mentioned in this article: 72.46%.