5 Best Cybersecurity Stocks to Buy Now

2. Palo Alto Networks, Inc. (NYSE: PANW)

Number of Hedge Fund Holders: 64

Palo Alto Networks, Inc. (NYSE: PANW) is an American cybersecurity company, headquartered in California, U.S. The company provides services in network and cloud security, and endpoint protection. It has more than 82,000 enterprise customers in over 150 companies. PANW ranks second on our list of the best cybersecurity stocks to buy now.

In Q3 FY21, Palo Alto Networks, Inc. (NYSE: PANW) reported solid earnings and raised its fiscal year guidance. The company reported a net income of $139 million, up from $114.6 million during the same period last year. The EPS of $1.38 beat the estimates by $0.10. The revenue presented a 24% year-over-year growth at $1.1 billion.

The subscription and support segment accounted for $785 million of the gross revenue. For FY21, the company expects revenue in the range of $4.20 billion to $4.21 billion and a free cash flow margin of 30%. The PANW stock has soared by 58.2% in the past year and 10.4% year to date. Due to the strong quarter, many investment banks raised their price targets on the PANW stock recently, such as Deutsche Bank, Piper Sandler, and Stifel. Shaul Eyal from Cowen also initiated coverage of PANW with an ‘Outperform’ rating and a $425 price target.

The number of hedge funds having stakes in Palo Alto Networks, Inc. (NYSE: PANW) increased in the first quarter to 64, from 61 in the previous quarter. Viking Global is the largest shareholder of the company with shares worth $807.8 million.