Three Cybersecurity Stock Picks To Beat The Market In 2016

2016 seems to likely to offer a slow-growth environment for world economies and many equities, but even in a slow-growth world there are particular industries and sectors experiencing rates of growth that investors can tap into. As of late, cybersecurity stocks have been some of the better risk-reward stocks and have been generating large capital gains in an otherwise lack luster market.

The cybersecurity sector has been a hot one recently, especially as large companies like Apple (AAPL – Analyst Report) and Target (TGT – Analyst Report), along with government agencies, have fallen victim to high profile attacks by hackers.

Also, cybersecurity stocks could be better off than many other stocks in a likely volatile market next year, as these companies are generating material growth in their financial results. One thing to keep in mind though is that reasonable valuations for this industry isn’t exactly something that applies to many in the sector, as many cybersecurity firms are reinvesting heavily back into their businesses.

As we roll into 2016, here are 3 buy-ranked cybersecurity stocks to consider in a world where cyber-attacks are ever more present and protecting against future ones is more important than ever:

Check Point Software Technologies LTD 

Check Point Software Technologies LTD (CHKP – Analyst Report) is a leading provider of policy-based enterprise security and traffic management solutions. The stock is currently holds a Zacks Rank #2 (Buy), and could be a solid pick in the cybersecurity pick for 2016.

With its industry leading products like the world’s leading enterprise security suite, FireWall 1r, and its patented Stateful Inspection Technology, CHKP delivers Secure Enterprise Connectivity solutions that protect information assets and enhance the performance of enterprise networks.

Analysts have become more bullish on the company’s stock for 2016, as there have been 5 upward estimate revisions for 2016 in the last 60 days. CHKP is projected for EPS growth of 8.53% next year, and the company is looking to continue its streak of earnings beats into 2016, as it has been able to do so in each of the last 4 quarters by an average of over 3%.