Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Palo Alto Networks Inc (PANW), Symantec Corporation (SYMC): Solid Plays in Cybersecurity

Antivirus software

Symantec Corporation (NASDAQ:SYMC) is well known for its popular Norton line of PC security software. One of the biggest problems holding back Symantec is the company’s lack of software designed to work on networks. The company offers IT companies security, but not network security solutions. While this problem has held the business back, it is not being solved: Instead management is working toward cost cutting and margin boosting strategies that will boost shareholder returns overall. In addition, the board is targeting sales growth of 5% a year, and is looking to improve both the dividend and stock repurchase programs.

Indeed, it would appear that this strategy is working, as the company is set to grow EPS and sales 100% and 16% respectively this year, beating the growth achieved over the past five years. Over the past five years the company has notched sales growth of 3.3% and EPS growth of 18.6%. Elsewhere, the company has a bundle of cash which accounts for around $6.90 per share and trades at a P/S ratio of 2.3 – much cheaper than its peers above.

Foolish summary

The market for global cybersecurity is massive, and these three companies all offer different plays to benefit from the increasing threats of cyber security. Out of all three companies, Symantec Corporation (NASDAQ:SYMC) looks to be the company that is in the best position to benefit from this trend; the company has plenty of cash and is set to grow rapidly this year. Check Point Software Technologies Ltd. (NASDAQ:CHKP) and Palo Alto Networks Inc (NYSE:PANW) look to be relatively overpriced. They should still benefit from the wave of cybercrime hitting business around the globe. However, much of this growth could already be priced in.

Fool contributor Rupert Hargreaves has no position in any stocks mentioned. The Motley Fool recommends Check Point Software Technologies. The Motley Fool owns shares of Check Point Software Technologies.

The article Three Solid Plays in Cybersecurity originally appeared on

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.