Strong quarterly earnings results from Palo Alto Networks confirmed it remains the best way to play cybersecurity right now, CNBC's Jim Cramer said Wednesday.
Palo Alto matched estimates with a fourth-quarter profit of 11 cents a share, excluding certain items. The company also delivered a revenue that beat expectations, as well as a strong outlook for profit and revenue in the current quarter.
Read More
"They reported an amazing quarter.... They've taken business from Cisco. They've done unbelievable things taking retailers, and yet they still only have about $600 million in revenues," Cramer said on "Squawk on the Street." "Palo Alto has the best detection stopping software and I got to tell you the quarter was magnificent, and they are spending, but they are still making money. This is the play."
Still, Cramer thinks the company has "way too small a market cap, given what's going on." Though Palo Alto currently nets roughly $600 million in revenues, the rising prevalence of cybersecurity could send its revenues into the billions, he said.
To Cramer, Palo Alto's "remarkable quarter" and increased demand for its services could send its stock far above his price target of $100 a share.
"Enterprises around the world are recognizing that cybersecurity is a very lasting and important and probably permanent item. It's a CEO item now. No longer [a] CTO [item]," he said. "Palo Alto has got the best detection and the best prevention. PANW going much higher."
—By CNBC's Drew Sandholm.
DISCLOSURE: When this story was published, Cramer's charitable trust did not own Cisco Systems or Palo Alto Networks.