The COVID-19-pandemic-driven digital transformation worldwide has increased the demand for cybersecurity and data protection. As the demand grows further with the continued, post-pandemic, adoption of remote work structures, and with large-cap companies now operating at near full capacity, we believe mid-cap cybersecurity companies McAfee (MCFE), Trend Micro (OTC:) and Tenable (TENB) have sufficient scope to grow. So, these stocks could be solid bets for this quarter. Read on for details.As the world witnesses a rapid digital transformation fueled by the COVID-19 pandemic, the demand for cybersecurity solutions is increasing exponentially. And with more remote and hybrid working models increasing the risks of cyberattacks, businesses around the world are adopting increasingly robust cybersecurity measures.
According to Fortune Business Insights, the global cyber security market is expected to grow at a CAGR of 12% over the next seven years to $366.10 billion. Investors’ interest in cybersecurity stocks is evident in First Trust NASDAQ Cybersecurity ETF’s (CIBR) 27.1% returns over the past nine months.
While large-cap stocks don’t typically offer rapid growth and most large-cap companies in the cybersecurity space are now operating at full scale, heightened volatility is typically associated with small-cap stocks. So, we think it might be wise to bet on mid-cap cybersecurity companies such as McAfee Corp. (MCFE), Trend Micro Incorporated (TMICY), Tenable Holdings, Inc. (NASDAQ:) to capitalize on industry tailwinds.
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