This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Investors Eying Cyber-Security Firms As Attacks Increase

In light of recent hacking attacks on huge corporations’ hardware, software and Internet content, investors have begun to eye cyber-security providers as the next big opportunity. Internet security firms such as Symantec (SYMC) and Check Point Technologies (CHKP) are in the best position to profit from this recent trend due to their strong fundamentals and large-scale capabilities. [More Tech News: Copyright In The Age of 3D Reproduction]

Recent Attacks

In recent months, American corporations have experienced a surge in attacks from hackers on everything from databases to Twitter accounts. This week, Mandiant, an American computer security firm, released a 60-page report linking a large amount of recent attacks to segments of the Chinese military. The group of hackers, known as the Comment Crew and Shanghai Group, has conducted over 140 attacks since 2006 according to the report. The Crew has managed to steal extensive amounts of information from Fortune 500 companies such as Coca-Cola (KO) but has now directed its attention towards infrastructure-related firms.

Symantec

In such a tense Internet environment, American corporations will be looking to trusted domestic cyber-security firms for further protection and more innovative solutions. Symantec (NASDAQ: SYMC), maker of the Norton anti-virus products, is one of the largest cyber-security firms with a market capitalization of 15.7bn. Last week, Symantec released new updates to its Website Security Solutions portfolio including new multi-algorithm security certificates to positive reviews.

In terms of fundamentals, Symantec has managed to double its net profit from $597mm in fiscal year 2010 to $1.17bn in fiscal year 2011 and has seen an increase in net profit in each of the past three quarters. With $3bn in cash on the balance sheet and relatively low leverage compared to its sector, Symantec has healthy prospects for future growth. Symantec’s stock has reflected this improved performance, with its share price jumping from around 18$ in August to almost 23$ in recent weeks. According to an option-tracking service, a record number of calls have been purchased for April on Symantec stock and the majority of analysts are bullish on the firm. Be sure to look out for Symantec in the coming weeks as firms look to beef up their computer security.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,943.81 +28.74 0.17%
S&P 500 1,967.57 +2.89 0.15%
NASDAQ 4,415.49 +19.2860 0.44%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs