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Network Security Stocks May Make Good Investments


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Network Security Stocks Will See An Increase In Demand For Their Services

Computer Security StocksNetwork security stocks, which represent a wide assortment of technology companies that sell products and services related to keeping computer networks safe and secure, should see an increase in demand for their services in coming years.  This increase in demand will be driven by the heightened awareness by the public and government regulators regarding computer network security breaches in the wake of the enormous security breaches reported by national retailers in late 2013.  Not only will revenues likely increase for companies in the network security sector, due to the increased demand for network security products, takeovers via mergers and acquisitions will also be more likely as big technology players fight for position in this growing technology sector.  Both of these factors should reward the owners of shares in network security companies with higher prices in coming years.

Why Network Security Stocks Make Good Investments

Cyber Security Stocks
Network security stocks are growing in importance because the use of computer networks is growing and now reaches just about every aspect of people’s daily lives.  They are also widely used by businesses and governments.  The critical role that computer networks play in processing financial transactions that keep the economy moving makes the security of computer networks a high priority in the mind of both the public and government regulators.  This concern for the integrity of computer networks will drive revenue and earnings growth for companies in the network security sector, as money is allocated to making computer networks more secure and less venerable to hackers that steal personal information stored on the networks and cause other mayhem.

While an explosion of spending is unlikely, a steady increase in spending is likely, as companies and governments work to improve the security of their computer networks and new security standards and methods are implemented.  The massive computer security breach that affected Target, Neiman Marcus, and many other retailers during the 2013 holiday season has put the focus on increasing computer network’s security to ensure that when consumers use their credit or debit cards that their information is safely processed and stored.

List of Network Security Stocks To Consider For Investments

Network Security Stocks

Network security stocks include companies that monitor computer networks for fraud, intruder, and malware activity and provide services that protect company and government networks from unwanted intrusions by hackers and loss of data due to security breaches. This sector is also known as the cyber security sector, as network security and cyber security are used interchangeably.  The following are some ideas regarding publicly traded companies in the network security sector.

  • Barracuda Networks Inc. (NYSE: CUDA) offers a wide variety of network security options for businesses large and small.
  • CACI International Inc. (NYSE:  CACI) offers cyber security services that protect private and public clients against cyber security threats.
  • Check Point Software Technologies Ltd. (NASDAQ: CHKP) is a leader in Mobile Data Protection (MDP) that customers use to secure their business information across their networks and mobile devices.
  • CommVault Systems, Inc. (NASDAQ: CVLT) provides backup and restoration of enterprise data for file systems, applications, databases, and virtual machine systems.
  • Falconstor Software Inc. (NASDAQ: FALC) provides data protection and storage virtualization solutions for a wide variety of business applications.
  • FireEye Inc. (NASDAQ: FEYE) offers a variety of network protection products that protect against malware and other network threats.
  • Fortinet Inc. (NASDAQ: FTNT) has developed a network security platform that acts as a firewall that protects major cloud platforms.
  • General Dynamics Corp. (NYSE: GD) is a large defense contractor that has a business unit called General Dynamics Information Technology that was awarded a contract to provide network security support to the U.S. Air Force.
  • Guidance Software, Inc. (NASDAQ: GUID) provides digital investigative solutions that enable customers to search, collect, and analyze electronically stored information to address human resources matters, litigation matters, allegations of fraud, and suspicious network endpoint activity to defend stored data assets.
  • Imperva Inc. (NYSE: IMPV) is a network security company that offers software that is designed to protect business data that resides in databases.
  • Iron Mountain Inc. (NYSE: IRM) provides data protection and recovery services, such as the secure handling and transportation of data backup media for fast and efficient data recovery in the event of data loss.
  • KEYW Holding Corp. (NASDAQ: KEYW) services defense, intelligence and national security agencies in the United States with network security products.  It also services private businesses.
  • NQ Mobile Inc. (NYSE: NQ) provides mobile mobile security, privacy, and protection. The company’s premiere product is NQ Mobile Security, which protects people’s mobile voice and data from malicious software, data theft, and privacy intrusion; and mobile security services, such as mobile malware scanning, Internet firewall, account and communication safety, anti-theft, performance optimization, hostile software rating, and reporting.
  • Palo Alto Networks Inc. (NYSE: PANW) provides firewall security products to protect networks from hacker and malware.
  • Qihoo 360 Technology Co. Ltd. (NYSE: QIHU) provides Internet and mobile security products in China.
  • Symantec Corp. (NASDAQ: SYMC) is a cyber security company focused on both personal and network computer security.
  • VASCO Data Security International Inc. (NASDAQ:  VDSI) sells and supports hardware and software security systems that manage and secure access to information assets on computer networks throughout the world.
  • VeriSign, Inc. (NASDAQ: VRSN) operates the authoritative directory Internet domain names.  The company also provides real-time information regarding network intelligence and availability to help companies and governments monitor the health of computer networks services that provide infrastructure assurance.

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