PreMarket Prep Plus: Cybersecurity Stocks In Focus During Ukraine Conflict
From his position as head of the Benzinga Pro newsdesk, Brent Slava is at the center of the news and uses his unique perspective to generate trading and investment ideas for Benzinga readers.
During his weekly spot on "PreMarket Prep Plus," Slava said he wanted to make sure investors have several cybersecurity issues on their watchlist in the wake of Russia’s invasion of Ukraine.
Why It's Important: If investors are to have learned one thing over the last few years, it should be the propensity of the market to have prolonged rotations. Money is always being moved around and rarely sits idle in a large portfolio. As a result, there is a constant movement of money invested in stocks from one industry to another as investors and traders anticipate the next stage of the economic cycle.
Not only do the changes in the economic cycle instigate this phenomenon, but changes in the geopolitical situation will as well.
Clearly, the recent turmoil has brought cybersecurity issues into focus and it may remain that way for quite some time. Therefore, when funds are pulling money from other sectors, it just may find its way into the cybersecurity sector.
The Big Boys: Slava mentioned several leaders in the sector, many of which have had some impressive moves. They are Palo Alto Neworks Inc. (NASDAQ:PANW), Zscaler Inc. (NASDAQ:ZS), Sentinel Once (NYSE:S), Mandiant Inc. (NASDAQ:MNDT), Cyberark Software Ltd. (NASDAQ; CYBR) and Crowdstrike Holdings Inc. (NASDAQ:CRWD).
Under The Radar: Slava mentioned some newer and smaller companies that may attract investor interest: Cyren Ltd. (NASDAQ:CYRN), Data Storage Corp. (NASDAQ:DTST), Ironet Inc. (NYSE:IRNT), and Cyber Sentinel Corp. (NASDAQ:CISO).
Broad-Based Approach: While picking the individual winners in a sector can be difficult, a broad-based approach can be used as well to help mitigate single stock exposure.
Two ETFs to consider for this type of investing are Global X Cybersecurity (NASDAQ:BUG) and Prime Cybersecurity Sector (NYSE:HACK).
The full discussion with Slava from Monday’s broadcast can be found here: