The Top 3 Cybersecurity Stocks to Buy in August

In the following video, I cover fundamental analysis and high-level overviews for three top cybersecurity stocks to buy in August. Then I discuss my thoughts on the current stock prices and where I would consider adding more shares to my portfolio.

1. Palantir (NYSE: PLTR) is not typically thrown into the cybersecurity stock bucket. After all, Palantir is a big data analytics software company that helps government agencies and companies manage and analyze data. However, with the increased hacks and high-profile security breaches, businesses are faced with complex challenges that require sophisticated solutions. Palantir offers highly secure data compared to most competitors. It started as a company laser-focused on government-related clients, so its solutions were built with security as the backbone. Commercial-focused vendors cannot say the same, and this provides a competitive advantage for Palantir.

As an example, Snowflake (NYSE: SNOW) is more focused on accessing and sharing data, and security is part of the solution. On the other hand, Palantir's foundation is built with security in mind. As President Harry S. Truman would say, "the buck stops here." Security is priority No. 1. As Palantir pushes harder into the commercial sector, I believe this advantage will reap rewards.

Additionally, Palantir has been thinking outside of the box with its growth expansion, which I explain in the video below.

2. Okta (NASDAQ: OKTA) is a leader in identity asset management (IAM). Its platform allows seamless user identification across an entire organization, covering all apps and devices. Okta's recent acquisition of Auth0 is misunderstood, but I think there is amazing potential with the two businesses combined. Okta is focused on single sign-on access for employees of cloud software-as-a-service vendors such as Salesforce and Workday. Auth0 is a developer tool that enables coders to leverage APIs to access single sign-on functionality. Simple lines of code can allow IAM integration without a complex workload. You could compare this to how Twilio simplifies messaging and communication.

3. Telos (NASDAQ: TLS) is not a well-known company, but it reminds me of Palantir's little brother. It's a small-cap stock with a $1.88 billion market cap. Telos has over 350 customers, and you may be surprised by some of the names it works with. Telos boasts an 85% recurring revenue model, and 50% of its business is sole source or has limited competition. Telos, like Palantir, has strategic relationships and procurement vehicles with government and federal agencies. I do a deep-dive analysis and breakdown of Telos in the video below. This small-cap could be a huge long-term winner in the cybersecurity space.

Please watch the below video for more information on these cybersecurity-related stocks.

*Stock prices used in the below video were during the trading day of July 30, 2021. The video was published on July 30, 2021.

10 stocks we like better than Okta
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*

They just revealed what they believe are the ten best stocks for investors to buy right now... and Okta wasn't one of them! That's right -- they think these 10 stocks are even better buys.

See the 10 stocks

*Stock Advisor returns as of June 7, 2021

Eric Cuka owns shares of Cloudflare, Inc., CrowdStrike Holdings, Inc., Okta, Palantir Technologies Inc., Pinterest,, Snowflake Inc., Telos Corporation, Twilio, and Zscaler and has the following options: long August 2021 $40 calls on Palantir Technologies Inc. The Motley Fool owns shares of and recommends Cloudflare, Inc., CrowdStrike Holdings, Inc., Okta, Palantir Technologies Inc., Pinterest,, Snowflake Inc., Twilio, Workday, and Zscaler. The Motley Fool has a disclosure policyEric is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool. 

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story


Latest Markets Videos

    The Motley Fool

    Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

    Learn More