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Weekly Strategy Calls
Creating a Portfolio of Cybersecurity Stocks
Posted: 08/27/2025
This week, Zacks Chief Equity Strategist and Economist John Blank, PhD discusses:
• The second part of John’s look at Cybersecurity industry stocks, a critical Info Tech industry with lots of demand. To begin this discussion, John walks through a helpful Cyber Security Risk Management outline of the key areas of this industry, from Risk Identification and Risk Management to User Awareness and Training to Incident Response and many other topics.
• John then evaluates stocks in this industry using a variety of metrics ranging from Revenue F12M and EPS F12M to Cash Flow Yield %, Free Cash Flow/Net Income and more. Stocks are sorted into Large, Mid, and Small Caps, and highlighted firms include big players like Cisco Systems (CSCO) and Crowdstrike (CRWD), plus smaller, less familiar companies such as Mitek Systems (MITK) and Radware (RDWR).
• Finally, John builds a variety of portfolios using these companies to evaluate the performance of these equities in that context. Not too surprisingly, large cap portfolios offer the best performance—and in one weighting, the portfolio achieves a return of more than 29%! If you’re looking for investing plays in the cybersecurity industry, be sure to watch this informative overview!
The views of John Blank, PhD are not necessarily the views of Zacks Investment Research.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research is not a licensed securities dealer, broker or US investment adviser or investment bank. The S&P 500 is an unmanaged index.