The S&P 500 broke out to new all-time highs this week, yet somehow the PureFunds ISE Cyber Security ETF (HACK) is down more than 18% in the past year.
Given the recent disappointment in the cybersecurity space, Palo Alto Networks Inc (PANW), Fortinet Inc(FTNT) and Splunk Inc (SPLK) are the only three stocks worth buying at this time.
What Happened to Cybersecurity Stocks?
The cyber world is as dangerous as it has ever been. New threats are constantly popping up. There is certainly plenty of business in the cybersecurity world.
So how is it that many top cybersecurity stocks are down so much in the past year?
Cybersecurity stocks have been a painful reminder that on Wall Street, performance is always relative. According to a new report byCybersecurity Ventures, global cybersecurity spending is expected to exceed $1 trillion from 2017 to 2021.
Unfortunately, the market was well aware of the potential market when share prices exploded skyward back in 2014. The growth bar was set so incredibly high for many of these cybersecurity stocks that any subsequent hiccups have been met with intense selling in the market.
Even today, the bar is extremely high when it comes to the valuations of some of the top cybersecurity stocks. But this high bar simply means that investors need to be even more careful when choosing the best investments.
Palo Alto Networks Inc (PANW)
PANW is…
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