The Biden Administration is pushing for cybersecurity infrastructure upgrades after recent attacks. Can these stocks ride the secular growth tailwinds and boost your portfolio?
1. Palantir PLTR is not typically thrown into the cybersecurity stock bucket. After all, Palantir is a big data analytics software company that helps government agencies and companies manage and analyze data. However, with the increased hacks and high-profile breaches, businesses are faced with complex challenges that require sophisticated solutions. Palantir offers highly secure data compared to most competitors. It started as a company laser-focused on government-related clients, so its solutions were built with security as the backbone. Commercial-focused vendors cannot say the same, and this provides a competitive advantage for Palantir. As an example, Snowflake (NYSE: SNOW) is more focused on accessing and sharing data, and security is part of the solution. On the other hand, Palantir’s foundation is built with security in mind. As President Harry S. Truman would say, "the buck stops here". Security is priority number one. As Palantir pushes harder into the commercial sector, I believe this advantage will reap rewards. Additionally, Palantir has been thinking outside of the box with their growth expansion, which I explain in the video.
2. Okta OKTA is a leader in Identity Asset Management (IAM). Its platform allows seamless user identification across an entire organization, covering all apps & devices. Okta’s recent acquisition for Auth0 is misunderstood, but I think there is amazing potential with the two businesses combined. Okta is focused on single-sign-on access for employees to cloud SaaS vendors such as Salesforce (NYSE: CRM) and Workday (NASDAQ: WDAY), as examples. Auth0 is a developer tool that enables coders to leverage APIs to access single-sign-on functionality. Simple lines of code can allow IAM integration without a complex workload. You could compare this to how Twilio (NYSE: TWLO) simplifies messaging and communication.
3. Telos Corporation TLS is not a well-known company, but it reminds me of Palantir’s little brother. It's a small cap stock with a $1.88 billion market cap. Telos has over 350 customers, and you may be surprised by some of the names they work with. Telos boasts an 85% recurring revenue model, and 50% of their business is sole source or has limited competition. Telos, like Palantir, has strategic relationships and procurement vehicles with government and federal agencies. I do a deep-dive analysis and breakdown of Telos in this video. This small cap growth stock could be a huge long-term winner in the cybersecurity space. Please watch this video for more information on these cybersecurity-related stocks. I cover fundamental analysis and high-level overviews for each company, then discuss my thoughts on the current stock prices and where I would consider adding more shares to my portfolio.
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This is not financial advice.