A Cyber-Offensive Strategy for Your Portfolio Amidst Tech’s Bear Market

  1. Palo Alto Networks (PANW) popped nearly 10% on Friday driven by over 300% average trade volume as the market responded to Russia’s ongoing cyber aggression. PANW is an old favorite; trading at $570 with a >$50B market cap, this pick has been a solid growth play for years. At last report, Palo Alto was generating cash profit at the rate of $1.4 billion per year, valuing the stock at only about 34X its free cash flow which is qualified by the fact that the company is growing at a rate of 30% annually. I’m glad I’m already in PANW to benefit from this bullish behavior, and strongly recommend this as a potential pick for others who see LT potential in the cyber sector moving forward.
  2. Fortinet (FTNT) was also up 9% on Friday after an impressive bounce over the course of last week as things began to get white-hot in Europe. FTNT is similar to PANW in that it’s a bread-and-butter stock for cyber security holders, currently valued at $325. A few weeks ago, FTNT announced that it had outperformed its earning forecasts in Q4, with quarterly earnings of $1.23 per share, beating the Zacks Consensus Estimate of $1.14 per share. This compares to earnings of $1.06 per share a year ago and represents an unexpected 8% quarterly growth in revenues. With an average BUY/HOLD analyst rating, multiple recent upgrades to “overperformed”, and a price target of $363, FTNT is a solid play to boost your cyber portfolio.
  3. HUB Security (HUB.TA) is a Tel-Aviv listed confidential computing company that is slated to list on NASDAQ later in ’22 via SPAC. The company has apparently raised >$150M in anticipation of the listing, and just last week announced the closure of a private placement with Israeli investors for a sum >$10M. Trading at 507ILA, HUB is +32% YTD and has far outperformed both PANW, FTNT, and market indexes like QQQ. HUB’s impending NASDAQ listing in expected to serve as a significant value-multiplier (8–12X) for shareholders, meaning that current holders could be holding one of the exchange’s hottest new cyber security offerings in a few months time. I recommend adding this ticker to your watchlist, and for those with access, to consider establishing a preliminary position.

--

--

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
David Keller

David Keller

Market analyst into the intersection of technology, finance, society, politics, and macro-econ. Straddles the NY-TLV axis. Fortis Fortuna Adiuvat.