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3 Cybersecurity Growth Stocks Down Big From Recent Highs

By Jose Najarro - May 11, 2021 at 11:15AM

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Here are a few reasons why you should keep an eye on them.

In today's video, I look at Okta (OKTA 0.05%), Crowdstrike (CRWD -0.57%)and  Zscaler (ZS 0.55%). These three cybersecurity stocks are down from their 52-week highs, and below I share three reasons why you should add them to your watch list.

Three Reasons to Add Okta to Your Watch List.

  1. On May 3, Okta completed an acquisition of Auth0, a leading identity platform for application teams. The acquisition strengthens and accelerates Okta's growth in the identity market.
  2. For Q4 FY 2021, Okta reported 40% y/y growth in revenue, 42% y/y growth in subscription revenue, 26% y/y growth in total costumers, and 33% y/y growth of costumers with Annualized Contract Value greater than $100k. 
  3. Okta has strong fundamentals with positive cash flow from operations and more cash and short-term investments than debt. 

Three Reasons to Add Crowdstrike to Your Watch List.

  1. On March 5, Crowdstrike completed the acquisition of Humio. The acquisition will help accelerate Crowdstrike's growth in XDR capabilities for cybersecurity. 
  2. For Q4 FY 2021, Crowdstrike reported revenue growth of 82% y/y, subscription revenue growth of 84% y/y, and new customer growth of 82% y/y.
  3. Crowdstrike has strong fundamentals with positive cash flow from operations and more cash and short-term investments than debt.

Three Reasons to Add Zscaler to Your Watch List.

  1. On April 15, Zscaler entered into a definitive agreement to acquire a cybersecurity company in Israel, Trustdome. 
  2. For Q2 FY 2021, Zscaler reported revenue growth of 55% y/y and deferred revenue growth of 60% y/y.
  3. Zscaler has strong fundamentals with positive cash flow from operations and more cash and short-term investments than debt.

Click the video below for my full thoughts. 

*Stock Prices used were the closing prices of May 7, 2021. The video was published on May 9, 2021. 

Jose Najarro owns shares of CrowdStrike Holdings, Inc. and Okta. The Motley Fool owns shares of and recommends CrowdStrike Holdings, Inc., Okta, and Zscaler. The Motley Fool has a disclosure policy. Jose is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.

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Stocks Mentioned

CrowdStrike Holdings, Inc. Stock Quote
CrowdStrike Holdings, Inc.
$195.76 (-0.57%) $-1.13
Okta Stock Quote
$101.77 (0.05%) $0.05
Zscaler Stock Quote
$175.31 (0.55%) $0.96

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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