6 Cybersecurity Stocks OUTPERFORMING the Market Right Now

While much of the market has been getting knocked around this year, one quarter keeps quietly making new highs, and that is cybersecurity. Here's why. Cyberattacks don't care about tariffs, interest rates, or oil prices. Simply, the more the world is online, the more everyone is at risk. As a result, cybersecurity isn't a nice-to-have item anymore. It's an absolute must-have, and that's exactly why this pocket of the market has been holding up so well while many other areas wobble. So, today, I've got six stellar cybersecurity stocks beating the market right now. Some you'll recognize, and some are hidden gems the crowd hasn't figured out yet. We'll start small and under the radar and build up to the highest-rated stock of the bunch. Now, if you like the sound of this theme, then do me a quick favor and tap that like button. It's the best way to tell YouTube to put more videos like this in front of you in the future. Now, our first cybersecurity stock today is NetScout Systems with the symbol of NTCT. Now, before I dig, I should probably tell you who I am. I'm Steve Reitmeister, but everyone calls me Reity. I've been investing for over 40 years and currently a partner at wallstreetzen.com. This is where our quant rating system analyzes a wide array of data points to pinpoint the stocks most likely to outperform. And I've got to remind you that I'm not giving you personalized investing advice today, and investing always inherently carries some risk. So, always do your own research before buying or selling any stock. Okay, so let's get back to NetScout. This company plays in a corner of cybersecurity most people never even have to think about, but every large network depends on it. We're talking about network visibility and DDoS protection. In plain English, when hackers flood a company's systems with junk traffic to knock them offline, NetScout is swatting those attacks down. They protect many of the world's largest enterprises, service providers, and government agencies. Now, business is good. Their earnings are forecast to grow 47% a year, which is significantly faster than the rest of their industry going forward. And I want to draw your attention to the company's consistency. NetScout has beaten earnings estimates for 20 quarters in a row. That's five straight years of impressive non-stop performance. Now, remember that each quarter they beat, then estimates are usually raised again. And then they keep jumping over that higher and higher earnings hurdle each time. That is a very impressive feat. And here's what I really like. For all that growth, you're still getting attractive value. That shows up in Netscout's low PEG ratio of only 0.73. Remember that the average stock trades for a PEG ratio around 1.5. So these shares would literally have to double to have an average valuation. Now, let's bring in our quant system the Zen ratings. This is our proprietary model based on a full 115 factor review spanning areas like growth, value, momentum, and more. The rating is then expressed as a letter grade, just like in school. Mom and dad are proud of A's and B's, but D's and F's will get you grounded. Netscout earns an above-average B grade overall, which means a buy recommendation. The overall grade is then further divided into seven component grades to help us appreciate the full picture of a stock. In this case, they land in the top 19% of all stocks tracked for financial strength. Then we see top 18% for value. Sentiment jumps it up a notch to top 11% of all stocks. And the standout grade is momentum, also in the top 11%, which tells you the price action is already in Netscout's favor. That is very beneficial for value stocks that are often not quite timely. Another interesting thing about the stock is the light coverage from Wall Street firms. This is one of the hallmarks of an undervalued stock that often leads to an attractive value equation. Meaning, once more firms take notice with buy recommendations, then shares will spring higher. This is a benefit to folks who take action sooner to enjoy this bullish catalyst when it unveils itself. Now, putting it all together, you have a cybersecurity player set to grow earnings at nearly 50% a year, plus a track record of earnings beat increases the odds they will actually achieve that impressive growth. All the while, it is under-followed and extremely undervalued. That's a pretty good start to our stock list today. By the way, if you like discovering trending industries and under the radar stock picks like I've been sharing, the best thing you can do is sign up for my next live training session this coming Monday. Now, the focus is on timing market insights plus my top picks. It's totally free, but you do need to sign up. Do that now to join me this coming Monday at 7:00 p.m. Eastern Time. Just go to wallstreetzen.com/live. Now, I almost didn't include this stock because its name is kind of silly to say out loud. So, here we go with our second stock in Enable with a symbol of NABL. This is a cloud-based security platform built for folks who protect everyone else, the managed service providers that keep small and mid-size businesses safe. Think about endpoint protection, data backup, cyber resilience, the unglamorous plumbing that keeps a business running after something goes wrong. Yet, it is absolutely essential in the cybersecurity world. Others are starting to take notice of these shares having rallied strong in the past month. Gladly, there are signs of plenty more upside ahead. Wall Street hasn't fully discovered the story yet. Only three analysts are covering shares. But, what's worth noting is that those covering analysts are highly ranked. The buy recommendation comes from Mike Cikos of Needham, a top 2% analyst based upon his actual stock picking performance. Eric Suppiger of B. Riley Securities ranks in the top 4% of all analysts, and he is pounding the table with a strong buy recommendation. Even better is his fair value target pointing to 100% more upside in the coming year. When top-performing analysts like these zero in on a small stock like Enable, it's usually worth paying serious attention. Once again, Marzen Ring's quant model appreciates the excitement behind these shares where Enable also earns an overall B, which is a buy recommendation. This stems from the company being in the top 10% of all stocks after that full 115 factor review. Looking at the standout component grades, its artificial intelligence time in his grade lands in the top 16% of stocks tracked. More about that one in a moment. Then value steps up to the top 9% of all stocks and the standard grade is growth in the top 8% of all stocks tracked. This is the best one to first shadow more earnings beats ahead. Quick note on that AI timeliness grade because it's easily confused. It isn't measuring whether company does artificial intelligence. It's our usage of AI to spot signals and patterns that point to stocks more likely to outperform. The honest risk here, Tenable isn't consistently profitable yet on the bottom line basis. And after a run in shares that we have seen, it might get a little choppy as some people take some profits off the table. This is the higher octane pick of the group, but for the risk tolerant, the payoff potential is real, especially with top level Wall Street support and that great trio of Zen ratings grades for growth, value, and timeliness. Now, if Tenable is the young upstart, then our next name is the seasoned pro that's been beating estimates for years. That brings us to the third stock in Tenable Holdings with the symbol of TENB. This is a pure-play cybersecurity firm and leader in what's called exposure management. The simple version of that, Tenable finds the security holes in a company's IT systems before the bad guys do. It's also simple to understand why their services are in high demand. The proof of that statement shows up in their earnings beat streak that has also extended to 20 consecutive quarters. That has Wall Street taking notice with a flurry of recent upgrades. This group includes a top-ranked analyst for his stock picking performance. I'm talking about Patrick Colville of Scotia Bank who recently upgraded Tenable to a strong buy with a price target that suggests nearly 50% upside in the coming year. Once again, the Zen ratings model echoes that bullish outlook. In this case, Tenable earns an overall B amounting to a buy recommendation. But really, maybe we should call it more of a B plus because the stock ranks in the top 7% of our entire database. Quite close to the 5% threshold we hold for the A-rated stocks. Our tour of the component grades is short but quite powerful. That's because we find financial strength in the top 14% of all stocks, and then we take a big leap forward as we find that growth is in the top 3%. Now, this is based on a review of 22 different growth factors that point to the consistency of growth, which is a great predictor of more earnings beats ahead. The uh one negative point out is that Tenable runs a modest loss in the bottom line. Yet, there is a clear pathway of profitability unfolding, which no doubt explains the recent exuberance from Wall Street analysts. Add the strong Zen ratings our review on top, and Tenable makes another quality pick for your watchlist today. Now, quick ask before we move on. If you're getting value out of this video, then hit that subscribe button. I publish data-driven stock analysis like this every single week, and I'd hate for you to miss the next one. Our uh next company might be the most important cybersecurity business you never heard of. That brings us to Mitek Systems with the symbol of MITK. Every time you uh deposit a check with your phone or snap a selfie to verify yourself for an app or online application, there's a good chance Mitek technology is running in the background. They specialize in mobile identity verification and fraud prevention. And in a world where AI is making scams and deepfakes more convincing by the day, then this is most certainly a great growth market to be a leader in. All that is showing up in the numbers. Mitek's earnings are forecast to grow much faster than its industry. No doubt their fat 80% profit margins have a lot to do with that growth. Like many other names on this today, Mitek has been consistently beating uh estimates with a seven-quarter earnings beat streak. This seems to be a fair theme with these cybersecurity names. As if the growth story was not good enough, let's check out what is happening on the value front. Mitek has an ultra-low PEG ratio of 0.65. Note that the average stock trade at a PEG of 1.5. So, Mitek would literally have to rally 150% to match the valuation of the average ticker. On to the Zen ratings. Mitek earns an overall B, a buy recommendation. Yet, just like the last one, maybe B+ is more accurate given that it ranks in the top 6% of all stocks after that full 115 factor review. There are two standout components we're talking about. Sentiment lands in the top 16% of all stocks tracked. The main risk here is that My Tech is a smaller company with a market cap just under a billion. That means its shares will swing harder than the big boys when the market gets moody. But as you can see, the growth and value story point to likely reward outweighing that risk. Now, all right, we are coming down the home stretch with the two highest-rated stocks on the list today. But first, a quick heads-up. If you want to stay one step ahead of the market, then join me live every Monday at 7:00 p.m. Eastern Time. This is when I share my updated market outlook and trading plan to outperform. This is also where I unveil my trader of the week based upon our proven Zen Ratings Quant Model and my greater than 40 years of investing experience. It's a free event, but you do need to register. Just go to wallstreetzen.com/live or click the link in the description or scan the QR code on your screen. Just pause the video for a moment to sign up. I can't wait for you, and then I look forward to seeing you on Monday. Okay, let's move on to our second-to-last stock in Extreme Networks with the symbol EXTR. They build the secure cloud-managed networking that companies run on. And increasingly, that means baking security right into the network itself. As more of the world runs on the cloud, somebody has to lock down all those connections. That's Extreme's lane. And the business has turned a corner. As of the week I'm recording, the stock is up 60% in the past 3 months. Yet, several signs suggest the party for this stock is far from over. One big catalyst for these recent gains is the cumulative effect of eight straight earnings beats finally waking up investors to the growth story unfolding here, especially the benefit of AI-powered networking solutions. Wall Street is most certainly warming to these shares with a consensus strong buy recommendation. The most notable analyst is Mike Genovese over at Rosenblatt, who sits in the top 1% of all analysts based upon his actual stock picking performance. He sees at least 30% more upside in the year ahead and even more over the long haul. This is our first elite A grade from the Zen Ratings, which is our quant model strong buy recommendation. Note that A-rated stocks have historically outperformed the S&P 500 by nearly 3 to 1. The higher overall rating points to higher overall component grades with strength in four key areas. Both growth and sentiment sit in the top 13% of all stocks tracked. Even better is the top 8% showing for financials and once again top 8% for momentum. That's a powerful combination of fundamental excellence that increases the odds of future share price gains, not to mention the momentum saying they are already timely shares. Now, we've made it all the way to our sixth and final stock. Indeed, we have saved the best for last. This is the highest rated stock in the entire video and the number one ranked stock in its whole industry. This brings us to Science Applications International with the symbol of SAIC, one of the biggest cybersecurity and IT partners to the US government. When the Pentagon or your federal departments need to lock down their systems with zero trust architecture, this is one of the handful of firms with the clearances and track record to actually do it. This is mission-critical work under long multi-year contracts. Once you're in, you usually stay in, which increases the odds of more growth ahead. What I want to draw your attention to here is their earnings tracker. Here again, we've we've had some nice companies before, but in particular, check out the four monster earnings beats they just served up in a row. Look at the forecast versus the actual results. Those are big beats that speak to an impressive earnings momentum story unfolding for this company. Growth by itself is nice. Growth and value combined is as good as it gets, and this is exactly where the company shines. We're talking about a forward PE of just 10. That is about half the PE of the average stock these days. So, as I already shared, this is the highest SA scoring stock we discussed today according to the Zen Ratings model. Not just an A-rated, not just a strong buy recommendation, but actually in the top 3% of all 4,600 stocks analyzed based upon its sparkling fundamental profile. And here's a nice bonus. Science Applications is actually the number one ranked stock out of 57 impressive firms in the IT services industry. Now, let's roll on to a strong roster of component grades. Sentiment is in the top 19% of all stocks tracked, that's the smart money indicator. Financial strength comes in top 15% uh artificial intelligence uh timing is grade is top 14%, then safety leads up a notch to the top 5%, and the crown jewel here, my friends, is value in the top 1% based upon 21 different measures of value. Five strong grades stacked uh one on top of the other, each increasing the odds of future share price gains. This certainly explains why I recently added these shares to my Zen Investor Newsletter portfolio featuring the top 20 stocks for the long haul. So, there you have it. Six cyber security stocks with the Wall Street support and impressive Zen ratings profiles that points to likely future share price outperformance. Remember, the Zen ratings are updated daily, so you can pull a free rating for any stock just by typing in the ticker at wallstreetszen.com. This is a good habit to make before buying or selling any stock. Just be sure to bookmark this site for future visits. Now, I want to hear from you. Which of these six stocks is your favorite, and is there a cyber security stock I didn't mention that you think deserves a spot in the future videos? Drop it in the comments section below. What to do with yourself next? Well, I invite you to watch the video coming up on your screen which highlight three great stocks to buy amid the recent tech sell-off.