The benchmark S&P 500 index is up 10.5% in 2024 and on course to enter April near an all-time high. That doesn't mean stock buyers have no options. Cybersecurity Ventures predicts cybercrime will cost $9.5 trillion in 2024. McKinsey & Company expects corporations will spend $213 billion on cybersecurity this year, which it calls terribly inadequate.
McKinsey recommends corporations spend $2 trillion annually. Cyberattacks will likely reduce that expenditure gap as organizations suffer financial and reputational losses.
This presents an opportunity for cybersecurity software leaders Tenable (NASDAQ: TENB) and CrowdStrike (NASDAQ: CRWD). Even though the S&P 500 keeps rising, investors should buy both businesses' shares.
Tenable specializes on vulnerability management. Nessus, the most popular cybersecurity vulnerability management tool, is owned by Tenable. It actively monitors cloud networks, operating systems, and devices for vulnerabilities so management may patch them before attackers do. No other tool can find over 83,000 common vulnerabilities and exposures like Nessus.
The broad Nessus product now connects to Tenable's increasing line of advanced cybersecurity products. The company offers solutions for financial services and automobile manufacturing, as well as Tenable One, a platform that combines cloud security, identity security, and attack surface management.
ExposureAI, a generative AI tool developed last year, connects into Tenable One to improve user experience. It allows managers to quickly find vulnerabilities using natural language queries instead of programming and code and clearly describes a business's security position to speed up repair.
More than 40,000 firms utilize Tenable, but 1,721 spent $100,000 or more on its platforms in 2023. That was a 21% rise from 2022, showing how important advanced cybersecurity is to large, complex organizations.
Tenable's 2023 revenue reached a record $798.7 million, up 17%. Management is cutting costs to focus on profitability, slowing revenue growth, while its non-GAAP net income rose 119% to $97.1 million.
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