The tech-heavy Nasdaq Composite is off 4.6% in the past three months while the broader technology ETF XLK has lost 1.3% and ETFMG Prime Cyber Security ETFMG Prime Cyber Security Fund HACK has retreated 0.7%. While rising rates have dealt a blow to the tech ETFs this year, we expect the pain over the space to lessen in 2023 as the Fed is likely to slow the rate hike pace.
Among the many corners in the tech space, we expect one area – cybersecurity – to emerge winner in the group. The latest earnings picture gives the cues.
Earnings reports from CrowdStrike CRWD and SentinelOne S pleasantly surprised Wall Street lately. CrowdStrike Holdings reported third-quarter fiscal 2023 non-GAAP earnings of 40 cents per share, beating the Zacks Consensus Estimate of 32 cents. CrowdStrike’s fiscal third-quarter revenues of $580.9 million surged 53% year over year and surpassed the consensus mark of $574.7 million.
SentinelOne came out with a quarterly loss of $0.16 per share versus the Zacks Consensus Estimate of a loss of $0.22. The company posted revenues of $115.32 million for the quarter ended October 2022, surpassing the Zacks Consensus Estimate by 3.93%. Both companies that are targeted at offering protection to many devices attached to corporate networks, raised their guidance too.
Okta Inc. OKTA reported breakeven earnings in third-quarter fiscal 2023, beating the Zacks Consensus Estimate by 100%. Total revenues increased 37.2% year over year to $481 million and surpassed the consensus mark by 3.76%.
Splunk Inc. SPLK reported solid third-quarter fiscal 2023 results (ended Oct 31, 2022), beating both the bottom-line and top-line estimates driven by healthy demand trends. Non-GAAP income in the reported quarter was 83 cents per share, which beat the Zacks Consensus Estimate by 60 cents. Total revenues in third-quarter fiscal 2023 improved to $929.8 million, beating the consensus estimate of $846 million.
In mid-November, Palo Alto Networks PANW reported non-GAAP earnings of 83 cents per share, beating the Zacks Consensus Estimate of 68 cents. Palo Alto’s fiscal first-quarter revenues of $1.56 billion surpassed the Zacks Consensus Estimate of $1.55 billion. PANW is up 19.5% past month.
In mid-November,Cisco Systems CSCO reported first-quarter fiscal 2023 non-GAAP earnings of 86 cents per share, which beat the Zacks Consensus Estimate by 2.38%. Revenues increased 5.7% year over year to $13.63 billion and beat the consensus mark by 2.32%.
Across the security landscape, vendors are busy providing tools to big companies concerned about susceptibilities that have arisen due to the remote work and hybrid concept and an increase in cyber-attacks due to Russia-Ukraine war, per CNBC.
Against this backdrop, below we highlight a few cybersecurity ETFs that should be tracked for gains in the coming days.
ETFMG Prime Cyber Security ETFMG Prime Cyber Security Fund HACK – Up 7.3% Past Month
WisdomTree Cybersecurity Fund WCBR – Up 7.1% Past Month
First Trust NASDAQ Cybersecurity ETF CIBR – Up 6.7% Past Month
iShares Cybersecurity & Tech ETF IHAK – Up 5.5% Past Month
Global X Cybersecurity ETF BUG – Up 5.4% Past Month
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Cisco Systems, Inc. (CSCO) : Free Stock Analysis Report
SentinelOne, Inc. (S) : Free Stock Analysis Report
Splunk Inc. (SPLK) : Free Stock Analysis Report
Palo Alto Networks, Inc. (PANW) : Free Stock Analysis Report
Technology Select Sector SPDR ETF (XLK): ETF Research Reports
ETFMG Prime Cyber Security ETF (HACK): ETF Research Reports
First Trust NASDAQ Cybersecurity ETF (CIBR): ETF Research Reports
Okta, Inc. (OKTA) : Free Stock Analysis Report
CrowdStrike (CRWD) : Free Stock Analysis Report
iShares Cybersecurity and Tech ETF (IHAK): ETF Research Reports
Global X Cybersecurity ETF (BUG): ETF Research Reports
WisdomTree Cybersecurity Fund (WCBR): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
SentinelOne's (S) third-quarter fiscal 2023 results benefit from an expanding clientele and strong demand for Singularity Cloud.
The rental platform’s net losses narrowed after its September restructuring and as its user patterns stabilized.
Marvell Technology, Inc. (NASDAQ:MRVL) Q3 2023 Earnings Call Transcript December 1, 2022 Marvell Technology, Inc. misses on earnings expectations. Reported EPS is $0.57 EPS, expectations were $0.59. Operator: Good afternoon, and welcome to Marvell Technology’s Fiscal Third Quarter 2023 Earnings Conference Call. All participants will be in listen-only mode. After today’s presentation, there will be […]The average brokerage recommendation (ABR) for Zscaler (ZS) is equivalent to a Buy. The overly optimistic recommendations of Wall Street analysts make the effectiveness of this highly sought-after metric questionable. So, is it worth buying the stock?
CrowdStrike Holdings, Inc. (NASDAQ:CRWD) Q3 2023 Earnings Call Transcript November 29, 2022 CrowdStrike Holdings, Inc. beats earnings expectations. Reported EPS is $0.4, expectations were $0.31. Operator: Hello, and thank you for standing by. Welcome to CrowdStrike’s Fiscal Third Quarter 2023 Results Conference Call. At this time, all participants are in a listen-only mode. After the […]The Zacks Security industry participants like FTNT, CHKP and QLYS are benefiting from the current hybrid working trend and digital transformation wave.
The acquisition of DYNAmore will boost ANSYS' (ANSS) exposure to the automotive industry.
Still subject to regulatory approvals, Ansys' acquisition of DYNAmore Holding GmbH would expand the local company's portfolio of similar products.
Zscaler (ZS) has received quite a bit of attention from Zacks.com users lately. Therefore, it is wise to be aware of the facts that can impact the stock's prospects.
GM has been encouraging dealers across the U.S. to enroll in a new plan to improve EV charging, Vietnamese automaker VinFast is considering an initial public offering in the U.S., and workers at an Ohio EV battery plant are voting to unionize. All this and more in The Morning Shift for Wednesday, December 7th, 2022.
MPLX LP (MPLX) has been one of the stocks most watched by Zacks.com users lately. So, it is worth exploring what lies ahead for the stock.
Coupa Software (COUP) closed the most recent trading day at $61.25, moving +0.16% from the previous trading session.
General Motors (GM) is planning on doubling the number of EV charging stations in the U.S. and Canada by targeting rural and underserved communities.
Microsoft poses the biggest threat to incumbents in the cybersecurity sector as it sells multiple products to companies in discounted deals.
Shares of the e-commerce company Etsy (NASDAQ: ETSY) were falling today, likely as investors worried that a potential economic slowdown could hurt Etsy's growth. As a result, Etsy's stock was down by 3.6% as of 3:38 p.m. EST. Bank of America CEO Brian Moynihan said at a conference today the "rate of growth is slowing" for credit card volume at the bank.
There are issues that could keep its stock down for a while, but the cybersecurity company's business is doing quite well.
Taiwan's economy minister said on Wednesday that the island remains chipmaker TSMC's most important production base after the company announced it would more than triple planned investment at its new Arizona plant to $40 billion. TSMC's Arizona factory has sparked concerns in Taiwan, where semiconductor manufacturing is the backbone of the economy, about a "goodbye to Taiwan" trend among chip firms. TSMC, which makes most its chips in Taiwan, is also building a factory in Japan.
Seanergy Maritime Holdings Corp. (NASDAQ:SHIP) Q3 2022 Earnings Call Transcript December 1, 2022 Operator: Ladies and gentlemen, thank you for standing by and welcome to the Seanergy Maritime Holdings Corporation Third Quarter and Nine Months 2022 Financial Call. At this time, all participants are in listen-only mode. After the speakers’ presentation, there will be the […]The Dow Jones Industrial Average dropped Wednesday after consecutive stock market sell-offs Monday and Tuesday. Apple and Tesla stock skidded.
GM has installed its first Level 2 charging stations in Wisconsin and Detroit as part of a community charging initiative unveiled last year.