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The company’s AI advancements also boost scalability and operational efficiency, helping it win large enterprise deals and maintain high customer retention. Companies like CrowdStrike Holdings CRWD, Qualys QLYS and Radware RDWR are leaning heavily into AI. They’re upgrading their platforms to detect and respond to threats more quickly and intelligently. This not only makes their products more valuable to customers but also gives them a stronger position in a fast-growing industry. Cybersecurity has become one of the top priorities for organizations.
First Trust NASDAQ CEA Cybersecurity ETF
- Technology and geopolitical trends may create tailwinds for cybersecurity stocks in the coming years.
- Read on to learn more about these cybersecurity companies and why they may be candidates for your portfolio.
- Additionally, the cybersecurity market is projected to grow at an annual rate of 12.4% between 2024 and 2027, exceeding historical growth levels as organizations intensify efforts to counter evolving threats.
- Estimates show steady EPS growth from $2.31 in 2024 to $4.02 in 2029.
- While Fortinet has largely built its cybersecurity suite in-house, Palo Alto has been able to grow much more rapidly by aggressively acquiring smaller businesses.
Solid long-term fundamentals and continuing investments in scalable operations should support long-term growth and make Tenable one of the best cybersecurity stocks to buy. SentinelOne’s longtime focus on endpoint protection, detection and response helps it fend off a variety of threats like malware and ransomware. These solutions would ultimately become part of SentinelOne’s comprehensive Singularity platform. Here are six of the best cybersecurity stocks to buy as growth in the industry ramps up. It also drew attention to the importance of reliable cybersecurity companies — and to the potential volatility of cybersecurity stocks. In its research note, B.Riley notes that the company’s competitive edge in the cybersecurity space stems from its robust blue-chip customer base.
FCF was calculated from each company’s most recent year-end financial releases as operating cash flow less capital expenditures or capex. Capex included purchases of property, plant and equipment and capitalized software costs. Its best-in-class hardware continues generating more revenue as many organizations turn to Fortinet for help building new data centers and 5G mobile networks.
Cloudflare NYSE:NET
Even though the stock price has declined since the start of the third quarter, that’s still an incredibly high valuation for this company. Compare Cybersecurity stocks with our powerful stock comparison tool. Analyze fundamentals, price performance, and key financial indicators to make informed investment decisions.
Microsoft is an AI leader with solid cybersecurity chops
To bolster its network security offerings and protect its customers from ransomware attacks, Akamai acquired several smaller security specialists from 2022 to 2024. As a high-growth segment of the tech industry, cybersecurity offers investors lots of upside in the decade ahead. SentinelOne (S -2.1%) is another recent pure-play cybersecurity company to be publicly listed.
Going forward, an effort to expand internationally as identity security becomes a cornerstone of modern large-scale organizations, Okta’s innovative platform, and solid financial momentum should keep shares humming along. For the year ahead, SentinelOne expects to cross the milestone of $1 billion in annual revenue while achieving a positive operating income. With shares currently down about 41% from its 52-week high at the time of writing, the company’s outlook for more profitable growth makes the stock a compelling buy-the-dip opportunity.
Top cybersecurity ETFs in 2025
Additionally, OneSpan is experiencing strong demand for its authentication services, which are expected to continue growing as AI adoption intensifies. Read on to learn more about these cybersecurity companies and why they may be candidates for your portfolio. Bulleted metrics come from stockanalysis.com, except for the FCF per share, which was calculated from company financial releases. To benefit from these trends, consider adding targeted cybersecurity exposure to your portfolio.
- Its projected revenue growth is 21.5% and its projected free cash flow margin is 31%.
- The strategy continues to pay off, with Fortinet stock up about 42% over the past year.
- With shares currently down about 41% from its 52-week high at the time of writing, the company’s outlook for more profitable growth makes the stock a compelling buy-the-dip opportunity.
- You can alternatively opt for a cybersecurity ETF that spreads risk out over a few dozen securities.
- That growth benefits Datadog, which has a strong market position in cloud security.
Also, intrusion detection systems can be deployed tailored to monitor and protect against threats related to interconnected devices. Fortinet is among the top five cybersecurity stocks by market cap and revenue, growing at a low-double-digit pace in F2024. Results are underpinned by client growth and service penetration and are better than analysts’ forecasts. Growth is expected to accelerate incrementally in F2025 and continue to drive superior profitability. Among Fortinet’s attractions is its industry-leading profitability. With the global cybersecurity market rapidly expanding, this Zacks Rank #1 (Strong Buy) company’s deep integration of AI not only enhances its competitive edge but also provides an opportunity for sustainable revenue growth.
Gen Digital Inc. engages in the provision of cyber safety solutions for consumers in the United States, Canada, Latin America, Europe, the Middle East, Africa, the Asia Pacific, and Japan. It markets and sells its products and related services through retailers, telecom service providers, hardware original equipment manufacturers, and employee benefit providers, as well as e-commerce platform. The company was formerly known as NortonLifeLock Inc. and changed its name to Gen Digital Inc. in November 2022. Gen Digital Inc. was founded in 1982 and is headquartered in Tempe, Arizona. Okta, Inc. operates as an identity partner in the United States and internationally.
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With several companies integrating GenAI into their operations, there has been a significant increase in cyberattacks. This led to increased demand for product offerings of cybersecurity companies. However, a strong underlying company isn’t enough to make a stock a smart buy — its shares also need to present an attractive value. Here’s one to avoid and two to consider adding to your portfolio. According to Cybersecurity Ventures, global cybercrime damages are projected to reach $10.5 trillion annually in 2025, up from $3 trillion in 2015, making cybersecurity one of the most critical industries in the digital age.
Now also a leading cloud security provider, this legacy business is highly competitive in the cybersecurity industry. Shares trade for a relative value compared to its younger, high-flying, cloud-native rivals. CrowdStrike is less than half the size of Palo Alto Network but is quickly growing its business. In F2025, the growth pace is slowing sequentially and year over year but sustaining a high 30% pace. F2025 results also include outperformance driven by large client growth and service penetration. Clients can use CRWD cybersecurity modules plug-and-play, quickly building upon the base services as needed.
With global spending on cloud computing expected to exceed $1 trillion annually this decade, Zscaler is well positioned to profit from a massive secular growth trend. The premium-priced stock was hit hard in 2022, and its security network suffered a painful outage in July 2024. CrowdStrike’s sales have been booming nonetheless, and the artificial intelligence (AI)-driven stock rose 16% in 2024 despite the outage.
To make our list of top cybersecurity stocks to buy according to Wall Street analysts, we reviewed the holdings of the Global X Cybersecurity ETF and selected stocks based on their upside potential, as of December 10. These stocks are ranked according to their average upside potential, from lowest to highest, based on price targets. Additionally, we have included the number of hedge funds with stakes in these stocks, using Insider Monkey’s hedge fund data for the third quarter. Unlike many emerging cybersecurity firms struggling with inconsistent profitability, Palo Alto Networks delivers robust financial performance with steady revenue growth.
This fast-changing environment creates opportunities for the best cybersecurity stocks to thrive. Proven cybersecurity providers will become invaluable to their customers and Cyber security stocks gain pricing power as a result. The idea of cybersecurity becoming obsolete is like imagining a world without the internet. As technology embeds itself deeper into our daily lives, the importance of cybersecurity only grows. Security threats simply come with the territory as bad actors always try to grab other people’s property — with more and more advanced technology at their side.