Pure Play Cybersecurity Software Stocks Portfolio Down Almost 4% In May
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An Introduction
Corporate spending on cyber security is forecast to grow at a CAGR of 13.8% between now and 2030 (source) and that is expected to have a positive affect on the value of the 7 pure-play stocks in the cyber security category. That being said, however, these 7 stocks are constituents in the new munKNEE Pure Play Cybersecurity Software Stocks Portfolio is off to a slow start in 2024 only going UP 3.3% YTD albeit DOWN 3.6% in May.
What Are Pure Play Companies?
A pure play company concentrates all its efforts on a single line of business, and in this context, it’s cyber security software. Notably, those companies that are highly diversified, i.e., do not generate at least 50% of their sales from cyber security products and services, are excluded from our new Pure-Play Cyber Security Stocks Portfolio of just 7 companies which is replacing our Cyber Security Stocks Portfolio which contained some nonpure play constituents.
The Pure-Play Cyber Security Stocks Portfolio
Below are:
- how the constituents performed in May, in descending order,
- their performances YTD,
- their market capitalizations,
- their current stock prices relative to their forecast earnings in 1-year's time (i.e., PEG ratio) where 1.0 or less means the stock is under-valued and 2.0 or more means the stock is currently over-valued,
- their momentum direction towards an RSI level of 30 (buy) and towards 70 (sell) and
- the most recent news, analyses and commentary on them.
- Gen Digital (GEN): UP 20.4% in May; UP 8.2% YTD
- Market Capitalization: $16B
- PEG Ratio Valuation: 1.11 VERY LOW
- Momentum Direction and Level: UP @ 71 RSI
- Most Recent News, Analyses, and Commentary:
- CrowdStrike Holdings (CRWD): UP 3.2% in May; UP 22.9% YTD
- Market Capitalization: $74B
- PEG Ratio Valuation: 1.92 LOW
- Momentum Direction and Level: UP @ 56 RSI
- Most Recent News, Analyses, and Commentary:
- Palo Alto Networks (PANW): UP 1.2% in May; No Change YTD
- Market Capitalization: $94B
- PEG Ratio Valuation: 2.32
- Momentum Direction and Level: UP @ 45 RSI
- Most Recent News, Analyses, and Commentary:
- Check Point Software (CHKP): DOWN 0.5% in May; DOWN 1.5% YTD
- Market Capitalization: $17B
- PEG Ratio Valuation: 2.76
- Momentum Direction and Level: UP @ 26 RSI
- Most Recent News, Analyses, and Commentary:
- Zscaler (ZS): DOWN 4.0% in May; DOWN 23.3% YTD
- Market Capitalization: $25B
- PEG Ratio Valuation: 1.43 LOW
- Momentum Direction and Level: UP @ 53 RSI
- Most Recent News, Analyses, and Commentary:
- Fortinet (FTNT): DOWN 7.6% in May; UP 1.3% YTD
- Market Capitalization: $45B
- PEG Ratio Valuation: 2.41
- Momentum Direction and Level: UP @ 44 RSI
- Most Recent News, Analyses, and Commentary:
- Tenable Holdings (TENB): DOWN 8.3% in May; DOWN 8.4% YTD
- Market Capitalization: $5B
- PEG Ratio Valuation: 2.43
- Momentum Direction and Level: UP @ 32 RSI
- Most Recent News, Analyses, and Commentary:
Conclusion
On average the above 7 pure play stocks were DOWN 3.6% in May but are still UP 3.3% 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 and has an expense ratio of 0.51%.
More By This Author:
Pure-Play Cloud Computing SaaS Stocks Portfolio Down 15% In May
Small Cap AI Stocks Portfolio Jumped 18% In May
The 7 AI Categories Were Down 4%, On Average, This Week; Up 1% In May
Disclosure: None
This article has been composed with the exclusive application of the human intelligence (HI) of the author. No artificial intelligence (AI) technology has been deployed. ...
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