Symantec Corp.SYMC recently announced that it will deploy a free service, powered by its proprietary artificial intelligence technology, which will provide protection against fake websites mimicking campaign portals and candidate websites.
With the mid-term elections knocking at the door, the need for tighter cyber security has increased to prevent any tampering activities. Symantec's free service will enable political candidates and campaigns to examine the security and authenticity of the original websites.
Russian Meddling Remains a Concern
The Russian interference in the 2016 presidential election was an eye-opening experience for the nation, and there are growing speculations that such activity could take place this time as well.
A group of suspect websites have been discovered, mimicking a portal used by U.S senators and urging them to reset their passwords via emails. Attempts at infiltration and social media manipulation indicate that Russia might still be interested to tamper with U.S. election procedures, even though there is no strong evidence yet.
Symantec Stands to Gain
As a proactive measure to tighten the security, Symantec has offered its service, putting its domain expertise and sound technology to use.
Cybersecurity companies like Symantec stand to gain from data breaches as chances of security-related purchases shoot up. Demand for cybersecurity-related products witnessed fresh momentum by last year's two back-to-back ransomware attacks - WannaCry or WannaCrypt in May and Petya in June - which created global havoc.
Apart from this, data breach at Equifax Inc., which was discovered in September 2017, is likely to have a positive impact on cybersecurity-related products' demand, particularly identity protection security providers. Symantec, which has been enhancing its identity-theft protection capabilities, is well poised to capitalize on this opportunity.
Moreover, the cyber security market is an attractive area even during recessionary times because of the increasing online traffic. Hardware and software functionality including segments like firewalls, VPNs, intrusion prevention and detection and multi-purpose security known as unified threat management, are expected to contribute to Symantec's growth.
Per a latest research report by Gartner, worldwide cybersecurity spending is likely to witness year-over-year growth of 8% in 2018 and reach $96.3 billion. Another report from Markets and Markets suggests that cyber security market is expected to record a CAGR of 11% in the 2017-2022 period. The increase in security spending is therefore likely to be beneficial for this company.
Symantec Corporation Revenue (TTM)
Zacks Rank & Stocks to Consider
Symantec currently has a Zacks Rank #3 (Hold).
A few better-ranked stocks in the broader Computer and Technology sector are Fortinet, Inc. FTNT , Vishay Intertechnology, Inc. VSH and Radware Ltd. RDWR , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Long-term earnings growth for Fortinet, Vishay and Radware is pegged at 16.8%, 9.2% and 19%, respectively.
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