With Q4 in full swing, here the Investing News Network takes a look back at the five top-performing cybersecurity stocks on the NASDAQ year-to-date.
As governments and companies continue to invest and focus more on cybersecurity, companies in this industry have been on a steady rise throughout the first nine months of the year.
In terms of the industry’s overall valuation, a report by Research And Markets estimates the cybersecurity market will be worth US$164 billion by 2024. The firm said that the role of cybersecurity has increased thanks to the growing access to the Internet across the world.
Research and Markets also noted the future of the cybersecurity market looks promising due in part to the rise in security requirements of Internet of Things (IoT) and Bring Your Own Device (BYOD) trends, coupled with the growing use of cloud based applications.
With Q3 2018 behind us, the Investing News Network (INN) takes a look back at the top five NASDAQ cybersecurity stocks year-to-date. The companies below all have market caps between US$50 million and US$500 million and are listed by percentage increases. All numbers and figures are current as of market close on October 10. The list was generated using FinViz screener with the companies categorized as “Application software” and “Security software and services”.
1. Finjan Holdings (NASDAQ:FNJN)
Market cap: US$136.22 million; year-to-date percentage gain: 131.27 percent; current share price: US$5
Finjan Holdings has a strong portfolio of patents focusing on software and hardware technologies and is number one on our top NASDAQ cybersecurity stocks list year-to-date. The company claims that its solutions are capable of proactively detecting unknown and emerging threats on a real-time, behavior-based basis.
Finjan has been active in the last quarter.Notably, the company entered into a confidential patent license agreement with Trend Micro which strengthens Finjan position in embedded cybersecurity technologies and intellectual property. Further, it was announced that Finjan and Juniper Networks [add ticker] areheading to a trial on December 10 over Juniper’s alleged patent infringement.
The company also launched its enhanced consumer Virtual Private Network (VPN) in September in addition to announcing that its revenues for the first six months of 2018 witnessed a 200 percent increase on a year-over-year basis.
2. KeyW Holding (NASDAQ:KEYW)
Market cap: US$425.47 million; year-to-date percentage gain: 50.60 percent; current share price: US$8.53
Second on the list is KeyW Holding, a company that provides engineering and technology solutions to support the intelligence, cyber and counterterrorism communities.
Throughout Q3, the company released consistent updates including winning contracts,the first of which was a multi-million dollar task valid for six years to support the US Army Intelligence Training Systems.
In late August, the company announced that it was awarded a US$100 million in software development and integration support work. KeyW Holding said that the contract with the classified customer was the continuation of software development efforts for classified systems that is critical for US national security missions.
3. Cyren (NASDAQ:CYRN)
Market cap: US$175.71 million; year-to-date percentage gain: 30 percent; current share price: US$3.27
Right in the middle of the pack of our top NASDAQ cybersecurity stocks list year-to-date is Cyren, a company that engages in the provision of cloud-based security solutions.Its product portfolio ranges from web and electronic mail security to cyber intelligence suite.
In early August, the company announced its record second quarter results where it reported that its revenues of US$9.2 million were its highest ever. The company credited its growth to a large contract expansion with Microsoft (NASDAQ:MSFT) and double digit growth in enterprise business.
Cyren also announced a strategic distribution with Arrow Electronics through which Arrow will distribute Cyren’s products throughout Canada and the United States.
4. MobileIron (NASDAQ:MOBL)
Market cap: US$485.94 million; year-to-date percentage gain: 21.92 percent; current share price: US$4.73
Next is MobileIron, a company that provides security solutions for mobile which helps companies around the world to transform into mobile first organizations.
Notable releases from the company during Q3 include its second quarter results, highlighting its revenues were US$46.1 million, a 7 percent increase year-over-year.
The company also announced that City of Stockholm chose the company’s MobileIron Threat Defense to detect and mitigate mobile threats. This means that 30,000 employees in Stockholm will use the company’s solutions on their mobile devices.
5. Zix (NASDAQ:ZIXI)
Market cap: US$279.49 million; year-to-date percentage gain: 18.49 percent; current share price: US$5.16
Last on our top NASDAQ cybersecurity stocks year-to-date list is Zix, which are pioneers of email encryption. The company offers solutions for prevention of email data loss and bring-your own-device security.
Unlike others on the list, the company had a quiet quarter with its only major news release being the second quarter results. In those results, the company reported that its revenues were up seven percent year-over-year to US$17.5 million.
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Securities Disclosure: I, Bala Yogesh, hold no direct investment interest in any company mentioned in this article