In today's video, I look at Okta (NASDAQ:OKTA), Crowdstrike (NASDAQ:CRWD)and  Zscaler (NASDAQ:ZS). 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. 



This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.