June’s Cybersecurity Investment Gems: Uncovering Top Stocks for Growth

At a glance

• CrowdStrike Holdings Inc.: The endpoint security vendor continues to post strong growth.
• Okta Inc.: The identity and access management company keeps adding customers.
• Demand for security products stays high as attacks grow and more business moves online.
• Investors tend to look for companies with distinctive technology and loyal customers.

Two security stocks drawing attention in June

Companies now run on software. Security has become part of basic business infrastructure, and as attacks keep rising, so does demand for the vendors that stop them, along with their market value. Investors who want exposure to the sector still have to pick names. This June, two stand out: CrowdStrike Holdings Inc. and Okta Inc.

CrowdStrike Holdings Inc.: A Leader in Endpoint Protection

CrowdStrike Holdings Inc. is best known for endpoint protection, the software that guards the laptops, servers and phones a company hands out to staff. Its reputation rests on fast detection. Speed sells.

The Falcon platform

Falcon, CrowdStrike’s main platform, detects threats in real time and uses artificial intelligence and machine learning to do it, and frequent product updates keep it ahead of rivals while giving the sales team something new to pitch to existing customers. It works.

Revenue growth

CrowdStrike’s recent results showed a large jump in annual revenue, driven by new customers and by existing accounts buying more. That mix matters. It suggests the company wins deals and keeps them.

Okta Inc.: Mastering Identity and Access Management

Identity and access management now sits near the center of most corporate security plans. Okta, which sells a broad set of tools in that market, keeps gaining ground.

Acquisitions and new sectors

Okta has folded acquired products into its platform and has signed customers in industries from healthcare to finance, where companies want sign-in tools that are secure without getting in employees’ way. Okta sells exactly that.

Okta’s outlook

Okta’s numbers point to rising revenue and a longer product list. Room to grow.

Our read

Security spending keeps growing because digital risk keeps growing. CrowdStrike and Okta both have products customers want and businesses that are still expanding, which puts them in a good spot to take market share over the next few years. Both look like reasonable long-term holds. Watch how each one handles the next round of customer demands.

John King, CISSP, PMP, CISM

John King currently works in the greater Los Angeles area as a ISSO (Information Systems Security Officer). John has a passion for learning and developing his cyber security skills through education, hands on work, and studying for IT certifications.