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Many cyber security systems software companies should continue to do well in 2024 given the momentum they have realized in 2023 and the 14% increase in spending on cyber security anticipated in 2024.

Below is a list of the top 10 cyber security systems software company stock performances so far in December (MTD), in descending order, and YTD, along with a description of each company's business focus and its current stock price in relation to its 1-year earning growth forecast (i.e. price-to-earnings-growth or PEG ratio) to provide an estimate of each company's expected earnings growth as compared to its peers (the lower the number the better and below 2.0 is considered ideal).

1. SentinelOne (S): UP 43.8% MTD; UP 107.6% YTD
   • is a global leader in AI security using its Singularity™ Platform to detect, prevent, and respond to cyber attacks enabling organizations to secure endpoints, cloud workloads, containers, identities, and mobile and network-connected devices with speed, accuracy and simplicity.
   • PEG Ratio: Not Applicable as company has no earnings
2. Zscaler (ZS): UP 13.8% MTD; UP 109.8% YTD
   • is a cloud security company that prevents cyberthreats and data loss while providing users with fast, reliable zero trust connectivity to apps from anywhere.
   • PEG Ratio: 2.18 (0.71% above the sector mean) 
3. Fortinet (FTNT): UP 13.2% MTD; UP 24.2% YTD
   • provides a wide range of cybersecurity and networking solutions
   • PEG Ratio: 2.27(4.9% above the sector mean)
4. Tenable (TENB): UP 11.3% MTD; UP 29.4% YTD
   • provides organizations with a broad range of cyber security solution platforms.
   • PEG Ratio: 3.57 (65.0% above the sector mean)
5. CyberArk Software (CYBR): UP 10.7% MTD; UP 79.1% YTD
   • enables secure access for any identity to any resource - protecting identities and critical assets by enabling Zero Trust and enforcing least privilege.
   • PEG Ratio: 12.85 (294.3% above the sector mean) 
6. Varonis Systems (VRNS): UP 8.8% MTD; UP 101.7% YTD
   • provides security products that manage network events in real time to detect any breaches or threats and expanded its support for Microsoft's Office 365 platform in November 2023 by adding new features to protect against malicious emails.
   • PEG Ratio: 11.87 (448.9% above the sector mean)
7. CrowdStrike (CRWD): UP 7.9% MTD; UP 156.3% YTD
   • is focused on cloud-native solutions and AI-driven threat detection and a leader in endpoint security.
   • PEG Ratio: 1.99 (7.9% better than the sector mean)
8. Qualys (QLYS): UP 7.5% MTD; UP 81.8% YTD
   • offers a complete set of cybersecurity products for small businesses that use Amazon.com's Amazon Web Services (AWS) platform.
   • PEG Ratio: 2.90 (34.2% above the sector mean)
9. Check Point (CHKP): UP 4.2% MTD; UP 21.7% YTD
   • offers a multilevel security architecture of cloud, network, mobile devices, endpoints information, and IOT solutions.
   • PEG Ratio: 3.84 (77.4% above the sector mean)
10. Palo Alto Networks (PANW): No Change MTD; UP 114.6% YTD
    • provides subscription services covering the areas of threat prevention, malware and persistent threat, URL filtering, laptop and mobile device protection as well as DNS, Internet of Things, SaaS, API, and SaaS security inline, and threat intelligence, and data loss prevention.
    • PEG Ratio: 2.46 (13.9% above the sector mean)

Summary

The 10 constituents in the new munKNEE Cybersecurity Software Stocks Index are UP 7.9%, on average, so far in December and UP 79.9% YTD.

Cybersecurity ETF

Investing in a basket of cyber security stocks is a quick and easy way to get investment portfolio exposure to this critical segment of the tech sector. The Global X Cybersecurity ETF (BUG), for example, consists of 31 stocks, has an expense ratio of 0.51% and is UP 10.0% so far in December although it is only UP 43.0% YTD in comparison to the munKNEE Cybersecurity Software Stocks Index.

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