As artificial intelligence becomes more and more pervasive in our daily lives, can this innovation pick the best cybersecurity stocks that deliver solid returns? We want to know!
Heading over to ChatGPT, I asked the digital intelligence platform to offer cybersecurity stocks with “serious upside potential,” citing a 10x target. I wasn’t caught off guard by the suggestion, as AI stock predictions have their limitations. If anything, I was a little bored.
Nevertheless, I never tried to kill off the question until I heard what I wanted to hear, I just wanted an answer to my question. Otherwise, what’s the point? With that in mind, let’s explore AI’s top picks for cybersecurity stocks with serious upside potential.
Crowd Strike (CRWD)
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According to ChatGPT, cloud strike (NASDAQ:CRWD) is a leading provider of cloud-native endpoint security solutions. Additionally, its platform provides advanced threat protection, endpoint detection and response (EDR), which provides threat intelligence services to businesses and organizations around the world. With the frequency and sophistication of cyber-attacks, CrowdStrike’s innovative approach could position CRWD stock for long-term growth.
When asked for more information on the intelligent chatbot, CrowdStrike said it is on a strong growth trajectory. Since our inception, we have consistently posted strong financial indicators and expanded our market share. If you look at the numbers yourself, that’s definitely onto something. Currently, CrowdStrike has recorded a revenue growth rate of 43.5% in his three years. This is much better than most other cybersecurity stocks.
Now, the issue clouding CRWD is that while analysts have a consensus rating for the stock as a strong buy, the average price target remains at $300.42. As of this writing, this estimate implies a loss of more than 9%. This is not surprising given the forward earnings multiple of 90.2x.
However, the upper price target stands at $375, suggesting an upside of over 13%. If a 10x return means his 1.10x then CRWD is the investment. Still, as a long-term idea, AI stock price prediction isn’t a bad idea.
Zscaler (ZS)
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I don’t blame ChatGPT one bit for this idea.Because how does ChatGPT know that? But you don’t necessarily have to take a shower. Z scaler (NASDAQ:ZS) as a 10x chance. why? Since the beginning of this year, ZS has already gained more than 19% of his market value. Over the past 52 weeks he has increased by more than 90%, or nearly double. This is not a great recipe for buying low and selling high.
Still, ChatGPT says its cloud security mechanisms could make it one of the top cybersecurity stocks. Chatbot says its platform features a zero trust security architecture. According to his website at Zscaler, zero trust refers to a protocol in which no entity should be trusted by default. Such standards should prevent the weakest link from imposing vulnerabilities on the entire chain.
Looking at this particular context makes the story clear. As more companies adopt cloud-based technologies, it is important to harden vulnerabilities. Similarly, remote work protocols can be a security nightmare for your organization.
Analysts rate the stock as a “buy.” However, his average price target of $244.27 suggests he has nearly 4% downside from where I am. However, to be fair, the upper target is $311, implying a 23% upside. Again, this is a good AI stock price prediction.
Palo Alto Networks (PANW)
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Frankly, I was worried that ChatGPT would choose it. palo alto networks (NASDAQ:Panwoo). It wasn’t like Milli Vanilli would win a Grammy. Still, PANW stock has the same drawbacks as Zscaler, if not worse. Palo Alto stock is up nearly 27% year-to-date. The following year, the company returned more than 113% of his return to shareholders.
Now, can the fire continue to burn? It’s unfair to put this on ChatGPT. But from a long-term perspective, Palo Alto’s comprehensive suite of cybersecurity solutions, including firewalls, cloud security, endpoint protection, and threat intelligence services, should help spark upward momentum over time. To be clear, these nefarious actors never stop working. The only way to eliminate cyber threats is if the Internet completely stops working. we don’t want that.
In that sense, PANW and other top ideas are persistently relevant cybersecurity stocks. As you might expect, analysts also rate the stock a Buy. However, the average price target of $356.63 comes with an underlying downside risk of 3%. However, the most optimistic target is $450, which would represent an increase of about 23%.
Publication date, Josh Enomoto did not have any positions (directly or indirectly) in any securities mentioned in this article. The opinions expressed in this article are those of the writer and are influenced by InvestorPlace.com. Publishing guidelines.
