While tech’s “Magnificent 7” dominated earnings headlines, several high-growth cybersecurity firms are poised for impressive results. The integration of artificial intelligence (AI) and machine learning (ML) is a key driver, making these companies essential in today’s security landscape. Let’s analyze three names worth considering ahead of their financial reports:
1. CrowdStrike (CRWD)
Earnings Date: Tuesday, March 5
Year-To-Date Performance: +25.8%
Market Cap: $77.1 Billion
CrowdStrike is the undisputed leader in cloud-based endpoint security, protecting businesses from sophisticated cyberattacks. Its meteoric rise reflects surging cybersecurity spending as companies scramble to secure their digital assets.
Expert View: Brian Essex, Global CIO at KeyBanc Capital Markets “CrowdStrike offers the most comprehensive endpoint protection solution on the market. Their AI-powered Falcon platform outperforms legacy rivals, creating a compelling value proposition and driving customer adoption.”
Analyst enthusiasm is palpable, with 36 out of 37 covering analysts raising earnings estimates recently. Q4 should see EPS soar 75% to $0.82, while revenue is projected to jump 31.7% to $839.6 million. CrowdStrike’s track record of exceeding expectations is unmatched, doing so every quarter since its 2019 IPO.
2. MongoDB (MDB)
Earnings Date: Thursday, March 7
Year-To-Date Performance: +10.1%
Market Cap: $32.5 Billion
MongoDB is a pioneer in modern cloud-native databases, a rapidly growing sector as businesses transition to more flexible data architectures. Their flagship Atlas platform is gaining traction, powering digital transformation efforts across industries.
Expert View: Maribel Lopez, founder and principal analyst at Lopez Research “The shift towards cloud-based databases is undeniable, and MongoDB is at the forefront. Atlas offers ease of use, scalability, and robust features, making it the preferred choice for many modern application development projects.”
Analysts are bullish, completely revising initial earnings expectations for a 101% increase. Projected EPS of $0.48 would contrast favorably with last year’s $0.57. Revenue is seen expanding by 20.5% year-over-year to $435.6 million. MongoDB’s consistent ability to outpace Wall Street’s forecasts makes it a compelling watch.
3. SentinelOne (S)
Earnings Date: Wednesday, March 13
Year-To-Date Performance: +3.9%
Market Cap: $8.5 Billion
SentinelOne is a rising star, its AI-powered platform delivering real-time threat prevention, detection, and response. The evolving cybersecurity landscape, heightened by geopolitical tensions, translates into significant growth potential for the company.
Expert View: Wendy Nather, Head of Advisory CISOs at Cisco “SentinelOne is a disruptor in the endpoint security space. Their focus on automation and AI gives them a distinct advantage in protecting against increasingly sophisticated threats.”
The Q4 outlook is promising, with recent upward EPS revisions pointing toward a significantly narrowed loss of -$0.04 compared to -$0.13 a year ago. Robust revenue growth of 34.3% to $169.4 million is anticipated. SentinelOne’s focus on next-gen solutions should fuel future expansion and investor interest.
The Bottom Line
As AI and ML revolutionize cybersecurity, these three companies are well-positioned for long-term success. While the tech sector faces headwinds, the cybersecurity industry remains a bright spot, with these stocks likely to deliver substantial returns despite broader market challenges.
