Cyberattacks can take down a business, disrupt supply chains, shut down hospitals, or lock individuals out of their accounts. Cloud networks bring additional challenges, as many companies are using cloud-based services and are operating in multi-cloud environments. That’s why global spending on cybersecurity, which was at $183.8 billion in 2024, is expected to jump 15% this year, according to Gartner. CrowdStrike Holdings Inc. is a holding company with subsidiaries that offers a robust cybersecurity platform. Its products include antivirus and endpoint detection, response, device control, vulnerability management, and threat intelligence. Almost every quarterly earnings report saw steady growth in revenue and profits.

The 7 Best Cybersecurity Stocks to Buy

This compares to a return of only around 3% for the S&P 500 Index. Overall, the MarketBeat-tracked consensus price target on Okta is nearly $122. This implies that shares could rise another 23% compared to the stock’s June 23 closing price. In 1993, Gil Shwed, Marius Nacht and Shlomo Kramer cofounded Check Point Software Technologies (CHKP, $220.26). It was the perfect time to start a cybersecurity company – the dawn of the internet revolution.

Furthermore, the company has had a positive cash flow since 2009. However, Fortinet announced lower-than-expected revenue for the next quarter early in August due to weak IT spending. They will still be profitable, but the margins won’t meet expectations. Nevertheless, you should add Fortinet to your stock watchlist if it isn’t there already.

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The company also announced a partnership with Singapore’s Quantum Engineering Programme to develop next-gen security for quantum computing. The company’s highly profitable platform has helped it acquire more than a dozen smaller cloud-native businesses in the past few years. As a result, Palo Alto Networks has given its security operation a serious makeover. In addition, Fortinet offers managed intrusion prevention systems, which is a compelling subsegment within the broader cybersecurity space. Moreover, regardless of threats from unscrupulous governments, data breaches have long been a sour spot since the advent of digitalization.

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However, the company does have strong cash flow and the second-highest FCF per share on this list. Cash flow production should continue, as the Zscaler team optimizes its already effective go-to-market and upsell strategies. Akamai is currently seeing momentum in security solutions and cloud computing. In its most recent earnings release, the company reported 17% quarter-over-quarter sales Cyber security stocks growth in these areas. To benefit from these trends, consider adding targeted cybersecurity exposure to your portfolio. Read on to meet six cybersecurity stocks with growth potential in 2025 and beyond.

However, it seems analysts did not think the results warranted such a large fall in shares, creating a potential opportunity. The lowest price target update tracked by MarketBeat issued since May 27 is $110, which still implies moderate upside. In 2023, Grand View Research estimated the global cloud market value at $602.31 billion. The researcher also projected a CAGR of 21.2% between 2024 and 2030.

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• Cybersecurity securities companies stocks will focus mainly on the hardware and software side of this process to ensure the safety of private users, a company’s, or even governmental data.
• Incidents in 2022 and 2023 kept OKTA’s stock price low, as other tech stocks rebounded strongly from the 2022 tech sell-off.
• He’s used this system to survive nine bear markets… create three new indices for the Nasdaq… and even predict the brutal bear market of 2022, 90 days in advance.
• The company is also optimistic about future growth, with executives anticipating a 4% to 5% bookings growth rate throughout the rest of the fiscal year.

NerdWallet, Inc. does not offer advisory or brokerage services, nor does it recommend or advise investors to buy or sell particular stocks, securities or other investments. Stifel analysts recently downgraded DDOG due to uncertainty around the company’s potential in the AI monitoring space. However, Bank of America Securities analyst Koji Ikeda has a different view, as reported by Business Insider.

Is it worth investing in cybersecurity stocks?

Rubrik operates an interesting business model within cybersecurity. It helps customers recover data quickly after a breach instead of preventing it initially. Much of this upside potential comes from a significant divergence in price action and Wall Street expectations after the company’s latest earnings. Okta shares fell 16% the day after it reported fiscal Q earnings on May 27.

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Cybersecurity is entering a critical new phase as artificial intelligence transforms how businesses operate — and how attackers exploit vulnerabilities. In a recent interview with CNBC, Palo Alto Networks CEO Nikesh Arora called this a “perfect time” for security companies, pointing to an inflection point in enterprise adoption of AI. Rapid7 generates more than $820 million in annual recurring revenue and services more than 11,000 customers. While the company’s revenue growth has slowed recently, Rapid7 has also recently achieved GAAP profitability—a milestone in the cybersecurity space.

SMEs comprise a large percentage of the company’s clients (61%), differentiating Fortinet from its competitors, who are more interested in large enterprise clients. Palo Alto is a leader in cybersecurity, focusing on firewalls and security platforms. Palo Alto’s platform strategy is powered by regular new product launches, covering more and more all possible cybersecurity needs through a coherent offering instead of patching it together from multiple vendors. Since 2019, the company has multiplied by 5x the number of yearly launches. According to a survey, about 70% of enterprises plan to use LLMs in production within the next year and 40% say that AI model risk is a notable concern.

The Motley Fool has positions in and recommends Check Point Software Technologies and International Business Machines. It also expects the dollars to continue to roll in during Q2, issuing guidance of $14.9 billion in revenue, which would be 19% better than a year ago. To be completely transparent, Absolute leaves something to be desired financially.

• Mainly, it is profitable, which many newer companies are struggling with.
• Zscaler’s early move into the key point of cloud cybersecurity has made it a central partner for many of the largest players in the cloud industry and large corporations highly reliant on cloud services.
• So it seems like cybersecurity costs will continue to increase.
• In any case, a company “should exhibit consistent year-on-year growth, with the potential for such growth to continue in the future,” Sharma adds.

“They’re adding more and more products to become a platform like Palo Alto,” Koujalgi says. According to the company’s profile from S&P Global Intelligence, CRWD provides cloud-delivered protection for endpoints, cloud workloads, identity and data. Services include workload security, vulnerability management, managed security services, threat intelligence, and more.

Work is not done in one office but remotely by delocalized teams, often in multiple countries. This means that vital or confidential business data is constantly circulated back and forth through the Internet, and virtually all devices are connected at all times. Based on generative AI, Innfinity AI helps automate complex security tasks and allows for proactive threat detection. And tests indicate it can reduce by up to 90% the time needed to perform common tasks. The combination will allow for consolidating data into a single hub, which will be a part of the Tenable One platform. Ultimately, it will boost visibility on potential threats and enable more effective use of AI.

In 2020, the average cost of a data breach amounted to $8.64 million. Further, the U.S. saw an increase in attacks from the prior year, moving against worldwide trends. Our chat rooms will provide you with an opportunity to learn how to trade stocks, options, and futures.

While Russia weighs heavily in terms of potential threats, it’s not the only power to worry about. Nations like China, Iran and North Korea aren’t exactly friendly to the U.S., thus cynically bolstering the narrative for the best cybersecurity stocks to buy. Its business involves anything connected to a network, such as laptops, computers, and smartphones. CrowdStrike has been investing in AI machine learning to detect breaches and hopes to generate more growth through this technology. As a result, there are calls for broadening recruiting processes to expand the candidate pool. SentinelOne (S -1.67%) is one of the cheapest stocks in the cybersecurity space.