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Given the fact that, according to research company, Gartner, corporate spending on cyber security is expected to grow by 14% in 2024. That's better than most information-technology spending categories suggesting that many cybersecurity software and hardware companies should be excellent long-term buys.

There Are 4 Main Types Of Cyber Security

1. Network security that protects the connections between networks, including data transfers to and from the internet, and hardware like routers and switches,
2. Endpoint security that protects devices like laptops, phones, and servers,
3. Application security that protects software, data and access at the individual application level, and
4. Cloud security that protects cloud environments and data from vulnerabilities and threat actors (source)

AI Is A Perfect Technology For Cyber Security

AI makes it a perfect value-addition technology for cyber security because it is fundamentally a complex mathematical equation that generates outputs with new data by using existing data. That enables cyber security companies to train their models with data from previous attacks to create autonomous systems that can detect if an attack is ongoing based on certain readings. This allows companies and users to increase their lead times in dealing with attacks and allows them to prepare mitigation and response strategies quickly.

The Top 10 Cyber Security Companies

Below is a list of the top 10 cyber security companies in munKNEE's new Cybersecurity Software and Hardware Stocks Index. They are presented in descending order as to their stock performances last week and YTD along with a description of each company, their market cap, and their latest news.

1. SentinelOne (S): UP 22.1%; UP 64.7% YTD
   • is a global leader in AI security using its SentinelOne’s 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.
   • Market Capitalization: $7.2B
   • News:
     • SentinelOne Could Be a Value Trap for 2024
     • SentinelOne: A No-Brainer Buy and Hold for 10 Years
2. Trend Micro (TMICY): UP 3.4%; UP 24.7% YTD
   • is a leader in cloud and enterprise cybersecurity delivering a range of advanced threat defense techniques optimized for environments like AWS, Microsoft, and Google for fast detection and response
   • Market Capitalization: $7.8B
   • News: 
     • Trend Micro Reports Earnings Results for Q3 2023 Marking 100 Consecutive Quarters of Profitable Growth
     • Trend Micro: Proliferation of AI-driven Attacks Anticipated in 2024
3. CrowdStrike (CRWD): UP 3.4%; UP 134.9% YTD
   • is focused on cloud-native solutions and AI-driven threat detection and a leader in endpoint security
   • Market Capitalization: $58.9B
   • News:
     • CrowdStrike is Attracting Investor Attention: Here is What You Should Know
     • Why CrowdStrike Stock Rallied 37% in November
4. Palo Alto Networks (PANW): UP 1.5%; UP 115.5% YTD
   • offers firewalls and other products
   • Market Capitalization: $93.6B
   • News:
     • Palo Alto Networks Recent Stock Performance Due To Its Strong Fundamentals?
     • Investors Heavily Search Palo Alto Networks: Here is What You Need to Know
5. Varonis Systems (VRNS): UP 0.9%; UP 81.5% 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.
   • Market Capitalization: $4.8B
   •  News:
     • Varonis Adds Generative AI Capabilities to Leading Data Security Platform 
     • Estimating The Fair Value Of Varonis Systems
6. Zscaler (ZS): UP 0.9%; UP 80.4% 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.
   • Market Capitalization: $30.3B
   • News:
     • Is Zscaler a Buy?
     • Latest Zscaler Inc Stock News
7. Qualys (QLYS): UP 0.2%; UP 68.9%
   • offers a complete set of cybersecurity products for small businesses that use Amazon.com's Amazon Web Services (AWS) platform.
   • Market Capitalization: $6.9B
   • News:
     • Qualys Rating Lowered to Hold at StockNews.com
     • Looking for a Top Momentum Pick? Qualys is a Great Choice
8. CyberArk Software (CYBR): DOWN 1.7%; UP 59.2% YTD
   • enables secure access for any identity to any resource - protecting identities and critical assets by enabling Zero Trust and enforcing least privilege.
   • Market Capitalization: $8.6B
   • News:
     • Wells Fargo Upgrades CyberArk Software
     • Should You Invest in CyberArk Software Ltd (CYBR) Now?
9. Cloudflare (NET): DOWN 2.1%; UP 80.2% YTD
   • allows websites to protect against online attacks along with providing other services.
   • Market Capitalization: $26.2B
   • News:
     • All You Need to Know About Cloudflare Rating Upgrade 
     • 3 Things Smart Investors Know About Cloudflare Stock
10. Fastly (FSLY): DOWN 4.7%; UP 113.7%
    • provides DDoS, bot, and other protection services.
    • Market Capitalization: $2.3B
    • News:
      • An Analysis Of Fastly's Potential Price Growth

      • Fastly Named Edge Development Platforms Leader For 2023

Summary

The 10 constituents in the new munKNEE Cybersecurity Software and Hardware Stocks Index have:

• an average market capitalization of $24.7B
• an average stock price of $134.88/share,
• were UP 2.2%, on average, last week and
• are now UP 83.1% 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 was UP 4.4% last week and is now UP 34.7% YTD.

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