As more people work from home and stay at home, the amount of time spent on computers, laptops, and mobile phones has gone up significantly. The pandemic has forced people to spend most of their lives on devices. In such a scenario, sensitive personal information is susceptible to hacking and there is a need for securing critical activities that are being done online. This trend has brought internet security company stocks in focus. Such stocks have been among the best tech stocks to buy.

Zscaler, VeriSign, and Akamai Technologies are considered to be the best internet security stocks. Zscaler is up 158% since the start of 2020. VeriSign stock is up 4.86% since the beginning of 2020 and up 36.47% since the March market fall. Akamai Technologies is up 23% year-to-date. Compare that with the S&P500, which is up 3% year-to-date.

VeriSign Inc. is an American technology company involved in internet security, network infrastructure, and root zone maintenance services. It operates two of the Internet’s thirteen root nameservers. Nameservers are a critical part of the internet network because they are the first stage in the translation of human-readable hostnames into IP addresses. So, VeriSign plays a vital role in the normal functioning of the internet.

In late July 2020, VeriSign reported its Q22020 earnings. Revenues were up 2.6% Y-o-Y to $314.4 million. Earnings per share increased by 6.5% Y-o-Y to $1.32 per share. VeriSign also reported processing of 11.1 new .com and .net domains as compared to 10.3 million in the same quarter the prior year. The company expects its full-year revenue to be in the range of $1.255 billion to $1.265 billion.

VeriSign, Inc. (VRSN)

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Verisign is an American technology company involved in Internet security, network, and root zone maintenance services. It owns two of the Internet’s thirteen root name-servers. Name-servers are a critical part of the Internet network because they are the first stage in translating human readable host names into IP addresses. Given the critical role that Verisign plays in the functions of the Internet, long-term prospects for the company are bright. 

A look at the 10-year monthly chart clearly shows the longer term up-trend in which VRSN has been. This trend has further sped up since 2017 after consolidation in 2016. More recently, the price of VRSN fell 15% from its February 2020 high. Since then, the stock has retraced about 12% in April 2020.

This retracement began with the bounce up from the bottom of the longer-term trend marked by the yellow line. Also, the price has crossed an important support level, shown by the dotted red line. Both these milestones suggest opening a long position

Lower trend line is a level of resistance below which a stop loss can be located.

 Positions taken at $202.85 with stop loss 19.9% below. Just below bottom the Yellow trend line.  Short-term investors could look at taking profit at the $245 level suggested.