Well, they sure are keeping healthcare officials busy these days. In response to the emergence of the coronavirus, agencies like the Centers for Disease Control in the United States and China are scrambling to contain the outbreaks.
And now the U.S. Food & Drug Administration has put out a safety communication about a very different vulnerability: cybersecurity.
The FDA’s briefing on Jan. 23 had to do with certain systems from General Electric (GE) for monitoring vital signs and patient status in hospitals. GE Healthcare is working on a software patch. But in the meantime, the FDA asks hospitals to “use firewalls, segregated networks, virtual private networks, network monitors,” and other cybersecurity measures to protect patients’ devices and privacy.
Hospitals might not be your first thought when it comes to cybersecurity. More famous are the hacks related to credit-card information and local government databases. (Just last year, the governors of Texas and Louisiana declared states of emergency for this reason!)
But think about all the medical devices in hospitals and doctor’s offices. Many of them are now computerized, and all in all, they collect a ton of useful data for your health. Rather than keep massive servers in their basement – where someone could trip over a cord and create chaos – many healthcare providers now keep this data online, in “the cloud.”
This means that hospitals and doctors are just as vulnerable to hackers as anyone. Unless, of course, they have a great cybersecurity solution.
Cybercrime Magazine reported in December that, from 2017 to 2021, the global healthcare industry is expected to have spent $65 billion on cybersecurity.
So, as investors, it’s worth thinking about where all that money is going. Right now, I’m recommending a few cybersecurity companies with great sales growth – especially CyberArk Software (CYBR).
CyberArk is leading the cybersecurity charge for all sorts of businesses, including healthcare. The company provides privileged access security, which protects a business’ assets, data and infrastructure. It’s a complete security solution that allows CyberArk Software’s customers to prevent cyber attacks, not just react to them.
As a result, CyberArk Software’s security solutions are in top demand. About half of the Fortune 500 and more than 30% of the Global 2000 turn to CyberArk to protect their business against malicious cyber attacks. The company partners with more than 5,000 businesses around the world, and it has offices in the U.S., U.K., Europe and the Asia-Pacific.
CYBR is up a nice 85% for us at Accelerated Profits, and here’s how the stock measures up in my Portfolio Grader:
Overall, that’s a great report card. CYBR gets a Total Grade of “A” – making it a Strong Buy in my stock-picking system.
Not only is CyberArk’s Sales Growth top-notch, so are its Earnings Growth and Operating Margins Growth. The company also has a strong history of positive Earnings Surprises and upward Analyst Earnings Revisions.
In its fourth-quarter results (due out on Feb. 12), CyberArk is expecting 15% to 16% revenue growth, year-over-year, with earnings per share of $0.78 to $0.82. CYBR just expanded its business with Amazon (AMZN)’s huge cloud computing segment, Amazon Web Services, which should give CyberArk a nice boost going forward.
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