Cramer vets under-the-radar cybersecurity plays like ForeScout

With high-profile splits rocking companies like Under Armour and Boeing, the cybersecurity affair is not slowing down anytime soon, CNBC’s Jim Cramer said on Friday.

But with top cybersecurity varieties like Proofpoint and Palo Alto Networks already up about 30 percent year to fashionable, the “Mad Money” host wanted to seek out some under-the-radar names to see if they could be importance investors’ time.

“Tonight, I want to tell you about the newer, multifarious under-the-radar, cybersecurity stocks that have been heating up of current, companies like ForeScout Technologies, Okta and Zscaler,” Cramer guessed.

ForeScout is a $1.3 billion company focused on helping government mechanisms and businesses implement security measures for growing online networks. With profuse and more smart devices being rolled out, ForeScout helps stave off breaches across the whole network instead of installing software framed for each device.

Cramer liked that the company, which surfaced public last October, already beat earnings estimates twice in a row and brags contracts with the Department of Defense to secure data and improve the Pentagon’s reaction time during cyberattacks.

Better yet, ForeScout’s stock hasn’t buddy-buddy under $30 a share since the company did an early secondary gift, letting insiders and early investors ring the register after its introductory public offering.

But Cramer had one but reservation: ForeScout’s IPO lockup expires on April 25 and that disposes to spur selling in the stock.

“If you want to buy this one, please, please, interest wait for the lockup expiration to give you a better entry point,” he insinuated. “ForeScout reports again on May 10, so hopefully you’ll have a couple of weeks to pick it up into partiality ahead of what I expect will be a very good quarter.”

Okta surfaced public about a year ago, but shares of the identity management and authentication monkey tricks really started climbing at the start of 2018. This company is an masterful in multi-factor authentication, or building multiple steps to a login to prevent infractions.

“The idea here is that Okta’s cloud-based platform is taking tons of sell share from existing authentication platforms,” Cramer said, noting that some 81 percent of observations breaches involve stolen or weak credentials.

Okta has also wowed investors with its earnings check inti, issuing four better-than-expected quarters in a row and giving wildly strong regulation for the year ahead.

“I like this story,” Cramer said. “My single hesitation here is Okta’s recent run, but when you consider that this progressing has happened in the face of some major selling by the company’s venture important backers, I think it’s absolutely worth putting on your shopping enumerate so you can buy some into the next major marketwide pullback.”

Cloud confidence provider Zscaler came public to a very enthusiastic market microscopic than a month ago, pricing at $16, above the expected range, and wind up at $33 on the first day of trading.

“Cybersecurity for the cloud that’s infinitely scalable; no stupefaction there was so much excitement,” Cramer quipped.

Shares of Zscaler require pulled back since then, but the company still has some cheering prospects. It has won some major government authorizations and news broke recently that Cisco requisite to acquire it before its IPO.

Cramer’s main issue was that the stock was smooth quite expensive relative to its peers, trading at 14 times next year’s trades estimates, compared to ForeScout at 4 times sales and Okta at 9 times sellathons.

The “Mad Money” host couldn’t deny Okta’s 30-plus percent proliferation rate or Zscaler’s 40-plus percent growth rate. But with their stores trading at such high levels, he had concerns about their valuations correlated to established players like FireEye, which only trades at 4 for the presents sales.

“The bottom line? We’ve got some very exciting emerging cybersecurity scenarios here, but as intriguing as Okta and Zscaler may be, they still need to attraction to into their valuations,” Cramer concluded. “You want a sexy, small-cap cybersecurity monkeyshines? May I suggest you go with ForeScout?”