3 Cybersecurity Stocks to Consider Amid Sector Buzz

ZS and OKTA have intriguing technical setups

Digital Content Manager
Jun 5, 2024 at 3:23 PM
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Cybersecurity stocks are fascinating because data breaches can happen to any anything with an internet connection. Malware, ransomware, and cloud intrusions all increased by sizable margins year-over-year. Factor in the proliferation of generative artificial intelligence (AI), and it’s all but certain cybersecurity will be on the bleeding edge of the tech sector for years to come.

Despite this widespread demand, First Trust NASDAQ Cybersecurity ETF (CIBR) is barely at its year-to-date breakeven point. But there are still stocks within the sector that should be monitored.

Crowdstrike Holdings Inc (NASDAQ:CRWD) stock was last seen up 8.9% to trade at $332.84, extending this morning's lead after the company announced better-than-expected first-quarter results and issued a strong quarterly and annual outlook. CRWD is eyeing its best single-session pop since a March 6 post-earnings pop sent it to a fresh record high of $365. The shares sport a 24.3% year-to-date lead, with support in place at their 120-day moving average.

Zscaler Inc (NASDAQ:ZS) are 2.9% higher to trade at $174.06, enjoying a halo lift from CRWD and  brushing off a price-target cut from Citigroup to $240 from $270. Down 20% year-to-date, the shares have been in a downtrend since a Feb. 9 record high of $259.61, with their 60-day moving average rejecting a post-earnings rally in late May.

Okta Inc (NASDAQ:OKTA) shares also attracted a price-target cut from BMO to $110 from $100, but are still up 1.6% to trade at $88.02. The lesser known cybersecurity stock carries a 15.8% quarter-to-date deficit, but support is emerging at the 200-day trendline. The shares are now below their year-to-date breakeven level but are 22% higher in the last 12 months. 

 

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