This Billionaire Was Duped – Clearly, We All Need Cybersecurity

[TradeSmith Power Trends logo] [TradeSmith Power Trends logo] June 27, 2024 This Billionaire Was Duped – Clearly, We All Need Cybersecurity This digital world may be amazing, but it’s also scary and potentially dangerous. Nobody is immune from scams or cyberattacks. Not even the rich, famous, and tech-savvy. The latest is “Shark Tank” star and billionaire businessman Mark Cuban. In a series of posts to his X (formerly Twitter) followers this past weekend, Cuban claimed that he received several phone calls from a Google Assistant phone number alleging that someone had gained access to his account from an unknown device. When he finally picked up, the person on the other end walked him through the account recovery process – which led to the hackers getting into his Google account and ultimately locking him out. On a bigger scale, a cyberattack last week led to the shutdown of computer systems at nearly 15,000 auto dealers. Hacks hit CDK Global, a software provider for dealers and service centers nationwide, and brought many to a standstill. They couldn’t perform even the most basic computer tasks. And it’s still going on, with some dealerships crippled. CDK is still working to fully restore its systems and doesn’t expect to be back online for several more days. Dealerships say it could take them months and even years to recoup. These stories hit home for me, and probably for you, too. Personally, I’ve had my own brushes with cyberattacks and theft. Just last year, some digital miscreant tried to hack my email and swipe a hefty chunk of change from a wire transfer I was handling for one of my businesses. Fortunately, we caught it on time. Now, though, I’m dealing with people claiming to be me on different platforms and scamming innocent people out of money. I’m doing my best to put a stop to it, but it’s not easy. Cybercrime is happening more than ever, and the attacks are getting more sophisticated, disruptive, and costly. This is why cybersecurity is becoming increasingly important. I wish it weren’t the case, but that makes cybersecurity one of the dominant themes of our digital world. As investors, we can’t ignore that. Right now, there are more than 3,200 cybersecurity companies. Not all of them are public, but there are a lot to choose from. Let’s look at a few of the top ones to see which are [moneymaking opportunities]( and which are not. Fortinet (FTNT) Source: TradeSmith Finance and MAPsignals.com Fortinet (FTNT) develops cybersecurity solutions like firewalls and intrusion detection systems. Its customers range from national hotel chains and state transit agencies to fast food restaurants and airlines. The company recently said that the financial impact of cybercrime on the economy is expected to surge to $10.5 trillion by 2025. To put that in perspective, the latest GDP report shows the entire U.S. economy to be $28.27 trillion. There’s clearly an urgent need for cybersecurity. FTNT’s mediocre Quantum Score of 55.2 is below our optimum buy range of 70 to 85, but it’s important to note that the score is dragged down solely by the low technicals of 38.2. Shares of FTNT are down nearly 15% over the past three months. But look at that Fundamental Score of 79.2. That’s impressive, and it’s what I call a divergence – when the technicals and fundamentals are far apart. I’ve mentioned before that these kinds of divergences almost always resolve in the direction of the strong fundamentals. I expect FTNT will bounce back over time thanks to the strength of the business, especially its sales and earnings growth. As you know, I closely track Big Money’s behavior when deciding to buy a stock, and my system has picked up seven sell signals in the last three months. That’s not surprising given the stock’s recent choppiness. But here again, sell signals in quality companies like FTNT usually precede a reversal higher. That’s what I expect here. The only question is timing. SPONSORED AD [America’s Cash Bubble Set to Burst on July 31st, 2024]( For the first time I’ve ever heard of... we know the exact day (and time) a bubble is going to burst. This is insane and something we only have access to because of Jason’s findings (that he’s sharing with his ultra-elite clients). To find out what the cash bubble is and why you’re vulnerable to it without even realizing... [Watch His Free Video Here]( CrowdStrike Holdings (CRWD) Source: TradeSmith Finance and MAPsignals.com CrowdStrike Holdings (CRWD) is a cloud-based cybersecurity company that provides threat intelligence and cyberattack response services. In just five years as a public company, revenue surged 1,100% from $250 million to $3 billion. CRWD has soared more than 170% in the last 12 months, and the stock was just added to the S&P 500 this week. You can see that strong Quantum Score of 81. That’s right in our optimal buy zone. Digging a little deeper, we notice a CRWD’s data is a little bit the reverse of FTNT. The technicals are about as high as they can get at 94.1, which is driving the overall score higher. Keep in mind, though, that a Technical Score that high typically signals overbought, which means a pullback is increasingly likely. CRWD’s Fundamental Score of 62.5 is solid, but it could be stronger. One- and three-year sales growth are good, but earnings are down sharply the last three years. Valuation is also a bit extreme for my liking with shares trading at 97 times this year’s expected earnings of $4 per share. CrowdStrike is a good company and a key player in cybersecurity, but shares look overextended right now. Palo Alto Networks (PANW) Source: TradeSmith Finance and MAPsignals.com Palo Alto Networks (PANW)’s main product is a platform that includes advanced firewalls and cloud-based offerings that protect companies from cyberattacks, breaches, and malware threats. PANW’s sales grew 15% in the first quarter to $1.98 billion. That beat analysts’ expectations, though shares barely budged. One- and three-year sales growth are both good. Earnings grew 10.8% last year, which is decent, but are down 20% the last three years. The profit margin of 6.4% is okay, but I’m not a fan of the high debt at 130% of equity. The fundamentals rate a decent but not beefy 62.5, helping generate a Quantum Score of 67.2. That’s just under my optimal buy zone and not bad, but I would say there are better opportunities out there. While I would be cautious on these companies at the moment, I do like a cybersecurity company I recommend to my [Quantum Edge Pro subscribers](. It has a strong Quantum Score of 69 with superior fundamentals that match FTNT’s at 79.2, but it has much stronger technicals. [Click here if you’d like to learn more]( about Quantum Edge Pro and start receiving my stock recommendations that are backed by my powerful Quantum Edge system. You’ll also receive access to my Quantum Score tool and be able to score your own stocks or any that you are interested in. Cybercrime is simply a fact of life for us as individuals and for businesses. That means cybersecurity is also a fact of life, and the highest quality cybersecurity companies stand to make their investors good money in the months and years ahead. Talk soon, [Jason Bodner] Jason Bodner Editor, Jason Bodner’s Power Trends Disclosure: On the date of publication, Jason Bodner held a position in Fortinet (FTNT) mentioned in this article. © 2024 TradeSmith, LLC. All Rights Reserved. P.O. Box 340087 Tampa, FL 33694 To unsubscribe or change your email preferences, please [click here](. 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