Top Cybersecurity Stocks for Q3 2022

MNDT, ABST, and ATEN were top for value, growth, and momentum, respectively

Cybersecurity companies provide services to protect electronic information from theft or damage. Businesses in the cybersecurity industry utilize both software and hardware to ensure that computing devices and data are not misused. The industry serves a broad array of customers including individuals, businesses, and government, among others. Some of the leading names in cybersecurity include Check Point Software Technologies Ltd. and NortonLifeLock Inc.

Cybersecurity stocks, represented by the First Trust Nasdaq Cybersecurity ETF (CIBR), have outperformed the broader market over the past year. CIBR has provided a total return of -2.9% over the past 12 months, above the Russell 1000's total return of -3.5%. These market performance figures and all statistics in the tables below are as of June 8, 2022.

Here are the top three cybersecurity stocks with the best value, the fastest growth, and the most momentum. Note that the companies on our list are primarily pure-play cybersecurity companies, while CIBR includes a wider variety of related stocks in its portfolio.

Best Value Cybersecurity Stocks

These are the cybersecurity stocks with the lowest 12-month trailing price-to-earnings (P/E) ratio. Because profits can be returned to shareholders in the form of dividends and buybacks, a low P/E ratio shows you’re paying less for each dollar of profit generated.

Best Value Cybersecurity Stocks
  Price ($) Market Cap ($B) 12-Month Trailing P/E Ratio
Mandiant Inc. (MNDT) 21.79 5.1 6.0
A10 Networks Inc. (ATEN) 15.76 1.2 12.8
CACI International Inc. (CACI) 282.72 6.6 16.3

Source: YCharts

  • Mandiant Inc.: Mandiant is a global provider of cyber defense solutions. The company offers web, email, file security, and malware analysis. It provides its cybersecurity solutions through its Mandiant Advantage software-as-a-service (SaaS) platform. On March 8, the company announced that it would be acquired by Google LLC in an all-cash transaction valued at approximately $5.4 billion. Mandiant is expected to join Google Cloud. The acquisition is anticipated to close later this year.
  • A10 Networks Inc.: A10 Networks is a provider of secure applications and solutions for multi-cloud networks, including private and public clouds as well as on-premise environments. Its software and hardware solutions enable its customers to secure their applications, users, and infrastructure from Internet, web, and network threats.
  • CACI International Inc.: CACI International is an information technology company. It provides cloud-powered solutions, SaaS, mobile and network security, and other digital solutions. It primarily serves federal agencies of the U.S. government as well as commercial enterprises.

Fastest Growing Cybersecurity Stocks

These are the top cybersecurity stocks as ranked by a growth model that scores companies based on a 50/50 weighting of their most recent quarterly year-over-year (YOY) percentage revenue growth and their most recent quarterly YOY earnings-per-share (EPS) growth. Both sales and earnings are critical factors in the success of a company. Therefore ranking companies by only one growth metric makes a ranking susceptible to the accounting anomalies of that quarter (such as changes in tax law or restructuring costs) that may make one or the other figure unrepresentative of the business in general. Companies with quarterly EPS or revenue growth of over 2,500% were excluded as outliers.

Fastest Growing Cybersecurity Stocks
  Price ($) Market Cap ($B) EPS Growth (%) Revenue Growth (%)
Absolute Software Corp. (ABST) 9.32 0.5 N/A (see company description) 69.6
Okta Inc. (OKTA) 102.19 16.1 N/A (see company description) 65.3
Zscaler Inc. (ZS) 165.6 23.4 N/A (see company description) 62.6

Source: YCharts

  • Absolute Software Corp.: Absolute Software is a Canada-based company providing security software solutions. The company's offerings include auditing, theft deterrence, and recovery services. It serves U.S. customers in education, government, and healthcare. Because the company's EPS was negative in the most recent quarter, an EPS growth rate was not calculated for the table above.
  • Okta Inc.: Okta is a software company that develops internet applications. The company is an independent identity provider whose cloud platform gives organizations the ability to securely connect people with electronic devices, such as mobile and desktop computers. Okta recently announced financial results for Q1 of its 2023 fiscal year (FY), the three-month period ended April 30, 2022. The company's net loss widened to $242.7 million from $109.2 million in the year-ago quarter. Revenue grew 65.3% YOY. Okta's operating expenses rose at a much faster pace than revenue, contributing to the wider net loss for the quarter. Because the company's EPS was negative in the most recent quarter, an EPS growth rate was not calculated for the table above.
  • Zscaler Inc.: Zscaler is a security software company. Its Zero Trust Exchange cloud security platform protects customers from cyberattacks and data loss. It provides web and mobile security, threat protection, networking solutions, and more. The company announced in late May financial results for Q3 FY 2022, the three-month period ended April 30, 2022. Zscaler's net loss widened to $101.4 million from $58.5 million in the year-ago quarter. Revenue expanded 62.6% YOY. Operating expenses increased at a faster pace than revenue, which contributed to the wider net loss for the quarter. Because the company's EPS was negative in the most recent quarter, an EPS growth rate was not calculated for the table above.

Cybersecurity Stocks With the Most Momentum

These are the cybersecurity stocks that had the highest total return over the past 12 months.

Cybersecurity Stocks With the Most Momentum
  Price ($) Market Cap ($B) 12-Month Trailing Total Return (%)
A10 Networks Inc. (ATEN) 15.76 1.2 57.6
Palo Alto Networks Inc. (PANW) 524.88 52.3 48.6
SailPoint Technologies Holdings Inc. (SAIL) 63.52 6.0 37.7
Russell 1000 N/A N/A -3.5
First Trust Nasdaq Cybersecurity ETF (CIBR) N/A N/A -2.9

Source: YCharts

  • A10 Networks Inc.: See above for company description.
  • Palo Alto Networks Inc.: Palo Alto Networks is a network security company. It provides firewalls to identify and control applications, scan content, prevent data leaks, and perform a variety of other services.
  • SailPoint Technologies Holdings Inc.: SailPoint Technologies Holdings is a provider of identity security solutions. The company enables its customers to securely manage the digital identities of employees, business partners, and other users. On April 11, SailPoint Technologies announced that it has agreed to be acquired by Thoma Bravo, a software investment firm. The all-cash transaction values SailPoint at around $6.9 billion. The transaction is expected to close in the second half of this year.

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  1. YCharts. "Financial Data."

  2. Mandiant Inc. "Google to Acquire Mandiant."

  3. Absolute Software Corp. "Absolute Software Reports Third Quarter Fiscal 2022 Financial Results."

  4. Okta Inc. "Okta Announces First Quarter Fiscal Year 2023 Financial Results."

  5. Zscaler Inc. "Zscaler Reports Third Quarter Fiscal 2022 Financial Results," Page 5.

  6. SailPoint Technologies Holdings Inc. "SailPoint to be Acquired by Thoma Bravo for $6.9Billion."

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