Cybersecurity stocks are positioned to outperform well into 2022, Wedbush analyst Dan Ives said Tuesday on CNBC's "Squawk Box."
Ives expects the sector to be "white-hot" amid a shift to the cloud and the increasing prevalence of threats across enterprises and governments.
"We sort of view it as a golden age for cybersecurity," Ives said. "It's probably the subsector of tech that's going to be the biggest outperformer over the next four to six months."
Many of the stocks have moved significantly higher over the last 18 months or so, he said, adding that such is likely the reason many of the cybersecurity stocks are selling off following earnings.
CrowdStrike Holdings Inc (NASDAQ:CRWD) announced better-than-expected earnings results Tuesday, but the stock was down nearly 3% at publication time.
Despite the knee-jerk reactions following earnings, Ives expects cybersecurity stocks to be re-rated higher.
Stock Picks: Ives told CNBC his top cybersecurity pick is Zscaler Inc (NASDAQ:ZS). He called the company the Salesforce.com Inc (NYSE:CRM) of cybersecurity. The analyst maintained Zscaler with an Outperform rating and raised the price target from $240 to $320 on Monday.
"I think we are still in the early innings of what's just a transformational growth cycle."
ZS Price Action: Zscaler has traded as high as $279.29 and as low as $120.34 over a 52-week period.
The stock was down 0.48% at $277 at time of publication.