When it comes to cybersecurity, the rapid proliferation of artificial intelligence creates great risks and great opportunities.between The risk is “Data poisoning,” where hackers destroy the data used to train AI systems, and “AI models” stolen by hackers. By stealing models, hackers can replicate the behavior of the system and perform harmful activities. Fortunately, however, AI can also be used to enhance cybersecurity. For example, A.I. You can automatically determine which IP addresses are malicious and take appropriate action immediately to neutralize dangerous IP addresses.
further combined more traditional This technology enables AI to identify all true cybersecurity threats with 100% accuracy while producing a relatively low false positive rate. Based on these points, I think many companies will increase the use of cyber security tools. He lists three of the best cybersecurity stocks to buy for those looking to capitalize on the latter trend.
Cybersecurity Stock: Palo Alto (PANW)
In the wake of in palo alto (NASDAQ:Panwoo), analysts at two banks were very optimistic about the company’s outlook in its recent second-quarter earnings call. according to Wells Fargo analyst Andrew Nowinski of PANW commented, “How AI is transforming the security market and how Palo Alto is leveraging its platform to ultimately deliver real-time data to customers. We explained how it would deliver the security outcomes of Furthermore, the analyst states Palo Alto’s “new medium-term goals… were actually all better than expected,” he said, raising his price target to $270 from $265.
Evercore ISI analyst Peter Levin raised his price target on PANW from $240 to $295 after PANW’s earnings release, stating that “investors can expect profitable growth, operating leverage and greater cash in this market.” “It’s clear that we will continue to reward companies that are able to deliver flow generation.” Levine maintained his Overweight rating on the stock.
Reviewer in On the IT research firm Gartner’s website, Palo Alto has a high overall average rating of 4.6 stars, with 97% of them rating the company either 4 or 5 stars.
Cyber Ark (cyber-)
based in israel cyber ark (NASDAQ:cyber-) specializing in providing privileges Access management “protects organizations from cyber-attacks by securing unauthorized individuals’ access to a given company’s critical resources.” In search of alpha Tech Stock Pros columnist.
In the current era, characterized by both the Internet of Things and AI, enterprise employees will have access to vast amounts of data. As a result, privileged access management will become very important in the medium to long term, so the demand for his CYBR products during these periods will be huge.
And that trend is already showing, with the company’s annual subscription recurring revenue soaring 77% sequentially in the second quarter.
A reviewer on the IT research firm Gartner’s website rated Palo Alto as follows: high overall average With a rating of 4.6 stars, 96% of them gave the company either 4 or 5 stars.
Checkpoint (CHKP)
For many years, Checkpoint (NASDAQ:CHKP) It has been Trapped within a trading range, Except for a brief period in early 2022, it repeatedly failed to rise above $135.
However, I think CHKP is likely to break out of the range in the near future. The Street is looking for relatively safe technology names that have seen significant growth but trade at low valuations. (Morgan Stanley analyst and renowned permabear Mike Wilson recently called on investors to “buy defensive stocks.”) growth stocks. ”)
Check Point fits that requirement. as a future price-to-earnings ratio Although the multiple is low at 15.2x, analysts on average expect earnings per share to be $8.90 next year, up from $7.40 in 2022.
Additionally, as I pointed out, In my last column, I introduced Check Point makes extensive use of AI. In fact, we announced Horizon XDR/XPR in early 2023. According to the company, the system is “the industry’s first AI-powered enhanced detection, protection, and response framework aimed at dealing with all facets of complex attacks.”
And finally, in the second quarter, the company’s Earnings per share soared 22% year-over-year growth and 14% year-over-year growth in security subscription revenue from more “advanced” offerings.
As of the date of publication, Larry Reimer did not hold any positions (directly or indirectly) in the securities referenced in this article. The opinions expressed in this article are those of the author and are subject to InvestorPlace.com Publishing Guidelines.