Daily Stock Pick: August 11th, 2022

One of the biggest threats to corporate America is ransomware. The growing possibility of losing access to essential or confidential digital property is a nightmarish scenario for executives as the financial consequences can be enormous.  

According to Research and Markets, the global network security market size reached a valuation of $4.68 billion in 2021. Experts project that by 2027, the segment will command a valuation of $16.6 billion, representing a CAGR of 23.5% from 2023 estimates.

Online security is a young, quickly evolving industry. Competition is heavy in the space, and demand continues to grow faster in volume and complexity. Today we’re featuring a potential growth opportunity from the burgeoning subsector that seems ripe for the picking at less than $15 per share.  

According to Mordor Intelligence, the application delivery controller market is expected to reach a valuation of $3.78 billion by 2026, representing a CAGR of 9.63% from 2021.  One of the companies set to benefit most from the trend is A10 Networks (ATEN). Specialists when it comes to the manufacturing of application delivery controllers, A10 leverages artificial intelligence protocols to provide automated protection against distributed denial-of-service (DDoS) attacks, which are increasing in relevance by the day.  

Widening profit margins were apparent in the most recent quarterly results as earnings expanded faster than revenues. The company reported last week that Q2 earnings came in at $0.17 per share, indicating an increase of 31% year-over-year, surpassing analyst estimates by 6%. Revenues were also upbeat at $68 million, representing a 15% increase from the same period last year and exceeding analyst expectations of $67.4 million.

“Our targeted, strategic investments in technology are enabling us to capture market share, while our diversity of revenue and cybersecurity solutions serve as catalysts for durable growth, even amidst macroeconomic conditions,” said Dhrupad Trivedi, A10 CEO.

The drastic earnings growth indicates the business is going from strength to strength. A trend that investors hope will continue well into the future. Management reiterated its full-year top-line growth target of 10 – 12% and expanded EBITDA in the range of 26 – 28% of revenue. ATEN currently boasts an across-the-board Buy rating from the pros covering the stock. A $20 median price target implies an increase of 30% from Thursday’s opening price.

Where to invest $1,000 right now...

Before you consider buying A10, you'll want to see this.

Investing legend, Keith Kohl just revealed his #1 stock for 2022...

And it's not A10.

Jeff Bezos, Peter Thiel, and the Rockefellers are betting a colossal nine figures on this tiny company that trades publicly for $5.

Keith say’s he thinks investors will be able to turn a small $50 stake into $150,000.

Find that to be extraordinary?

Click here to watch his presentation, and decide for yourself...

But you have to act now, because a catalyst coming in a few weeks is set to take this company mainstream... And by then, it could be too late.

Click here to find out the name and ticker of Keith's #1 pick...