June 10, 2015

In February, we issued a report on cybersecurity and featured 5 stock recommendations. ALL FIVE ARE BIG WINNERS! 100% home runs. We really hope you acted on these recommendations and are sitting on a healthy profit right now. If not, don't worry, there is good news!

You may be wondering what comes next? As cyber terrorism continues to be a major threat to government agencies and private businesses, cybersecurity stocks are the big winners. Just last week, the Department of Homeland Security detailed another hack to U.S. government computer networks. Nearly every government agency was hacked, leaving the personal data of four million current and former federal employees vulnerable. This hack, suspected to be the work of the Chinese state is the largest breach of federal employee data and is the second attack on the agency in less than a year.

Over the past few quarters, the demand for cybersecurity has risen. According to Gartner, an information technology research and advisory company, cybersecurity providers are seeing double-digit top-line growth while overall IT spending is anticipated to grow just under 3% in 2015.

As the landscape for cyber threats grows increasingly complex, many IT security teams are grappling with ways to keep pace with plethora of advanced threats and the volume of alerts. The stakes are high, and with attacks becoming more prevalent, the need for sophisticated security measures is even more crucial.

Check out this powerhouse company

One of the stocks in our Free Cybersecurity Report is Palo Alto Networks (PANW), which is up big time, over $30+ since we featured it in your free copy and we see even more potential! Subscribers of our premium Hotline service received an updated recommendation on this hot stock last week.

Palo Alto Networks, a leader in enterprise security, was founded in 2005 in Santa Clara, California and provides an enterprise security platform to businesses, service providers, and government entities worldwide. On June 8, the company announced enhancements to its security platform included in its PAN-OS 7.0 release, which expands its prevention capabilities through enhanced analysis, automation and operational efficiencies and is designed to assist in blocking threats. New features help security professionals overcome the massive volume of alerts and manual processes and expand prevention capabilities while boosting boost operational efficiency.

"As organizations grow and adopt new technologies like virtualized datacenters amidst an evolving and complex threat landscape, security teams are implementing more security devices and policies. Streamlined management capabilities like those introduced in Palo Alto Networks PAN-OS 7.0 can extend prevention capabilities and dramatically reduce the likelihood of human error that often causes a significant amount of network downtime." - Jeff Wilson, research director, cybersecurity technology, Infonetics.

Shares of PANW have been making a strong, steady climb to the upside and we believe that there is even greater upside to come. EPS estimates have been consistently revised higher across the board over the last three months. In addition, PANW beat expectations in all of the last four quarters and is forecasted to grow net sales by 50.4% in FY15 over the prior year. PANW is expected to expand its business at a compounded annual growth rate (CAGR) of 49.4% over the next five years. Based off the rate of topline growth, it appears that Palo Alto Networks is stealing market share in its industry. The company nearly doubled its investment in Research and Development and is seeing significant growth in its product and services demand overseas. We see shares moving to $200.