Image Source: Pixabay

An Introduction

The damage inflicted by cybercrime could reach as high as $10.29 trillion by 2025 (see report here) and, as such, sophisticated cyber security is crucial to protect networks, systems and other digital infrastructure from malicious attacks. To that end, it has become virtually mandatory for such companies to pay the relatively modest fee required by cyber security companies to provide the protection required and, as a result, corporate spending on cybersecurity is forecast to grow at a CAGR of 13.8% between now and 2030 (source).

Defining Pure-Play Companies

Pure-play companies concentrate all their efforts on a single line of business and, of the 63 cybersecurity companies in the sector (see here) only 7 are publicly traded pure-play companies.

The Pure-Play CyberSecurity Software Stocks Portfolio

Shares of the 7 stocks in munKNEE's Pure-Play CyberSecurity Software Stocks Portfolio jumped 3.3% last week, in large part because cybersecurity software provider and peer BlackBerry reported Q1'25 earnings results ahead of expectations, with sales partly benefitting from strong cybersecurity revenue, which beat consensus estimates and the consensus was that it likely pointed to a more resilient demand for cybersecurity solutions.

Below are how the 7 constituents performed in June, in descending order, and YTD, along with their market capitalization, and the most recent news, analyses and commentary on some of them.

1. CrowdStrike Holdings (CRWD): up 22.2% in June; up 50.1% YTD
   • Market Capitalization: $95B
   • Most Recent News, Analyses, and Commentary:
     • CrowdStrike’s Growing Sales Send Stock Soaring
     • 3 Incredible Stats That Suggest CrowdStrike Could Soar Much Higher
2. Palo Alto Networks (PANW): up 15.0% in June; up 15.0% YTD
   • Market Capitalization: $103B
   • Most Recent News, Analyses, and Commentary:
     • Palo Alto Networks is Attracting Investor Attention: Here is What You Should Know
     • Palo Alto Networks Q1 Earnings In The Context Of Other Cybersecurity Stocks
3. Zscaler (ZS): up 13.1% in June; down 13.3% YTD
   • Market Capitalization: $27B
   • Most Recent News, Analyses, and Commentary:
     • Why Zscaler Stock Is Rocketing Higher
     • Earnings Estimates Moving Higher for Zscaler: Time to Buy?
4. Check Point Software Technologies (CHKP): up 9.6% in June; up 8.0% YTD
   • Market Capitalization: $18B
   • Most Recent News, Analyses, and Commentary:
     • Here's Why Check Point Software Technologies is a Strong Growth Stock
     • Are You a Growth Investor? Check Point Could Be the Perfect Pick
5. Tenable Holdings (TENB): up 3.3% in June; down 5.4% YTD
   • Market Capitalization: $5B
   • Most Recent News, Analyses, and Commentary:
     • None
6. Fortinet (FTNT): up 1.6% in June; up 3.0% YTD
   • Market Capitalization: $45B
   • Most Recent News, Analyses, and Commentary:
     • Fortinet: A Cybersecurity Stock To Watch As Cloud Application Security Market Booms
     • Fortinet Could Be a Great Addition to Your Portfolio - Here's Why
7. Gen Digital (GEN): up 0.6% in June; up 9.5% YTD
   • Market Capitalization: $15B
   • Most Recent News, Analyses, and Commentary:
     • What Does Gen Digital's Current Share Price Indicate?
     • Gen Digital is a Top-Ranked Growth Stock: Should You Buy?

Conclusion

On average, the above 7 pure-play cybersecurity software stocks were up 14.5% in June and are now up 18.2% 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 Rebounded In June
These 4 Pure-Play Quantum Computing Stocks Fell 13.6%, On Average, In June
Largest Semiconductor IDM Stocks Down In June; Up 13% YTD