Cyberattacks linked to the war in Ukraine are no longer just headlines about battlefields. They are spilling into warehouses, payment systems and logistics networks, and that pulls cybersecurity stocks into sharper focus for investors watching risk and opportunity. This article walks through three stocks exposed to these rising cyber threats, all flagged in our Cybersecurity Stocks screener, to help you judge where the news flow may be creating openings or adding extra caution signals
The three cybersecurity stocks in focus below are just a starting sample, and the full screen surfaced 46 more companies with equally compelling narratives that are not covered in this article. If you want to go wider and deeper on this theme right now, head straight into the Cybersecurity Stocks screener to identify, filter and analyze the highest conviction plays
Riskified (RSKD)
Overview: Riskified runs an e-commerce risk intelligence platform that helps online merchants approve more legitimate transactions while screening out fraud, handling chargeback disputes and policing abuse of refunds, returns and account access across sectors like payments, travel, electronics and fashion
Riskified sits in the crosshairs of two big themes you may care about right now. Online fraud is getting more complex, and geopolitical shocks like the Ukraine cyber incidents are putting payment and logistics systems under pressure. Merchants are looking for partners that can keep approval rates high while limiting fraud losses, which is where Riskified’s AI driven products, recent partnerships such as Marqeta, and case studies like Kogan.com’s reported savings come in. At the same time, the company is still reporting losses and faces questions over margins, funding risk and competition from larger payment providers. That combination of clear demand and execution risk may make Riskified a stock worth a closer look in this cyber risk upcycle.
Riskified’s effort to keep approvals high while fraud risks climb can appear to be an underappreciated lever in this cyber risk cycle. Before you decide how that trade off compares, read the analysis report for Riskified
Build your own cyber risk shortlist
Riskified and the two other cybersecurity stocks in this article are all examples of what you can surface with a focused screen. Use our customisable Screener to mix filters like valuation, future growth, financial health and risks into your own watchlist, or tap into our ready made Investing Ideas for curated starting points
Allot (ALLT)
Overview: Allot provides network intelligence and cybersecurity tools that help telecom operators, governments and enterprises see what is happening on their networks, manage traffic quality and protect users and infrastructure from threats such as DDoS attacks and malware across fixed, mobile and 5G networks
Operations: Allot generates its revenue from optical networking equipment, which brought in about US$109 million
Market Cap: US$383 million
Allot sits at the intersection of rising cyber risk and the telecom pipes that carry global data. This positioning has drawn attention after the Ukrainian cyberattacks on Wildberries highlighted how payment and logistics systems can be taken offline. The company is now profitable, is reporting growth in its Security as a Service subscriptions with major carriers, and has a sizeable buyback approved, which together indicate management confidence in the business. At the same time, heavy reliance on a few large telecom customers, relatively modest revenue growth and recent insider selling mean this is not a one way bet. For investors seeking exposure to carrier grade security tied to data traffic, Allot may be a stock to watch closely.
Allot’s profitable shift and growing Security as a Service subscriptions suggest that the telecom story is only half written. Get the fuller picture through the 3 key rewards and 1 important warning sign and see what might be hiding in plain sight
Rapid7 (RPD)
Overview: Rapid7 provides cybersecurity software and services that help companies monitor their networks, cloud infrastructure and applications, detect and respond to attacks, and manage vulnerabilities and compliance from a single platform
Operations: Rapid7 generates about US$856 million in revenue from security software and services, with roughly US$603 million from the United States and US$253 million from the rest of the world
Market Cap: US$876 million
Rapid7 sits squarely in the line of fire as cyberattacks spread from conflict zones into everyday commerce, which puts more focus on its detection, response and exposure management tools. The company is adding products like Cyber GRC on top of its Command platform and AI assisted security operations, while also opening up new regulated markets through FedRAMP clearance. At the same time, revenue is expected to contract modestly, legacy vulnerability management weighs on growth and debt coverage remains a concern, so the story is not risk free. If you are looking for a pure play on rising cyber risk with a mix of product momentum and execution questions, Rapid7 is a stock worth placing on your radar.
Rapid7’s push into AI assisted security operations and FedRAMP markets hints at a story investors may be underestimating. See how the growth narrative stacks up against the execution questions in the analyst forecasts for Rapid7
Seeking Fresh Alternatives Beyond Cybersecurity?
Fresh stock ideas do not stay under the radar for long. Breakout moves and momentum can get caught fast. Scan these lists before the best entry points are gone, act now
- Spot income opportunities that may hold up when prices swing by checking out the 10 dividend fortresses and see which payouts still look supported while it matters.
- Track early movers tied to AI infrastructure before valuations start flying by using the 55 AI infrastructure stocks while these picks remain under wider market focus.
- Follow structural demand in power technology as aging grids face pressure, then filter potential beneficiaries with the 38 power grid technology and infrastructure stocks before the crowd fully catches on.
This article by Simply Wall St is general in nature. We provide commentary based on historical data
and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your
financial situation. We aim to bring you long-term focused analysis driven by fundamental data.
Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
Simply Wall St has no position in any stocks mentioned.
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mitchell_lawler
The Foxhole
Micron (MU) is booming, and it still doesn’t look ‘expensive’ based on next year’s earnings. So why does our own valuation say it could be worth 40% less?
2413
zoe_vi5fn2d
A low price to earnings ratio at the top of the cycle is a warning rather than a bargain, and a terrifyingly high one at the bottom is often the entry point
darius_xnnrd2d
Memory used to have a dozen participants racing each other into oversupply, and now it has three. High bandwidth memory is qualified into customer designs years ahead, sold under long-term agreements, and is far harder to switch away from than commodity DRAM
About NasdaqGM:RPD
Rapid7
Provides cybersecurity software and services under the Rapid7, Nexpose, and Metasploit brand names
See The Free Research Report
Moderate growth potential with mediocre balance sheet
See The Free Research Report
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