11 Best Cybersecurity Stocks to Buy According to Wall Street Analysts

Like its peer, Palo Alto Networks, it has maintained double-digit percentage growth and is highly profitable. But, unlike Palo Alto Networks’ acquisition spree, Fortinet has invested in its organic development of cloud security to remain competitive. Palo Alto Networks is the largest pure-play cybersecurity operation in terms of revenue and market cap.

What are cybersecurity stocks?

The company sells software, hardware, and telecommunications equipment and provides various services and IT consulting for corporations. This result will push more hackers to find vulnerabilities in companies’ networks and systems to gain in similar ways. Gen had a strong second quarter of its fiscal 2025, with year-over-year increases to revenue, earnings, operating margin, operating cash flow, and more. The company posted 13% improvement to its diluted EPS and operating cash flow of $158 million, more than 25% higher than the prior-year quarter. Things seem to be changing, though, as Rubrik has recently garnered attention for its robust revenue growth, prompting shares to surge by 45% in the month leading up to December 5, 2024. Despite this rapid share price climb, Rubrik’s price-to-sales ratio remains a competitive 15.5.

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• However, based on a long-term technical profile, it appears that FTNT is setting up a bullish flag formation.
• 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.
• Application and API security, bot and abuse protection, infrastructure security and programs supporting a zero-trust strategy are part of the offering.
• This expansion has also created greater opportunities for cybercriminals to engage in financial theft, compromise sensitive information, and disrupt critical infrastructure.

Covered calls are a great strategy to add to any portfolio, and can offer enhanced yield from stock holdings, in some case, that can be a significant increase. SentinelOne still has work to do to prove itself as a platform leader, but the combination of fast growth, strong technology, and an attractive valuation makes it an intriguing name for long-term investors. Following last year’s headline-grabbing IT outage, CrowdStrike has done a great job regaining the trust of its customers by offering incentive packages to those who were affected.

Cyber Security Stocks Breakdown

The Bullish Bears trade alerts include both day trade and swing trade alert signals. These are stocks that we post daily in our Discord for our community members. Deloitte, PwC, Ernst & Young, and KPMG are the big four in cybersecurity. With every high-profile digital security breach, like that of the Colonial Pipeline, agreeing to pay $4.4 million in ransom to the criminals who shut down their operations, two things are the result. While Apple currently has a Moderate Buy rating among analysts, top-rated analysts believe these five stocks are better buys. This tool will download a .csv file for the View being displayed.

NASDAQ: PANW

Look to trade publications, stories in business publications and customer reviews to find strengths and weaknesses. The difference between the two gives a sense of what financial resources the company has at hand for growth, future investment and so on. The smaller a percentage LFCF is of UFCF, the tighter a debt tight rope a company walks. This has led to a conflicting pair of dynamics that traditionally has been called best-of-breed versus best-of-suite.

The constant development of new attacks and areas of concern has meant a need for ongoing development of responses. These often come from startups, many of which are privately held and some of which are public, allowing people to acquire shares. Such focused companies can provide best-of-breed singlemindedness. Earnings in the first quarter posted $14.5 billion in revenue, which included $5 billion in consulting services. Software sales were up 7% from a year ago, and the company saw its profit margins increase to 55.2%.

The Global X Cybersecurity ETF is also rather concentrated, with only 22 stocks in its portfolio. Okta (OKTA -3.43%) is a pioneer of identity and access management, which rethinks traditional security by using zero-trust architecture. This type of identity management constantly requires user verification before allowing access to data and applications. If legacy security is a castle with a wall and a moat, zero-trust security acts more like a counterspy agency. A cloud-native software company, CrowdStrike Holdings (CRWD -2.94%) provides endpoint security — protection for devices such as laptops, PCs, smartphones, and any other device connected to a network.

Many, or all, of the products featured on this page are from our advertising partners who compensate us when you take certain actions on our website or click to take an action on their website. CDNs are internet infrastructures that maintain the internet “freeway” on which data travels. Akamai is a leader in this sector and is also a developer of edge computing technology, which pulls data away from centralized data centers and brings it closer to end users. Managing fewer vendors decreases internal operational costs and also opens the potential for negotiation of discounts. Products from one company will tend to have pre-existing integration, so there is less work to get everything to work together.

Akamai Technologies Business Overview

Proven cybersecurity providers will become invaluable to their customers and gain pricing power as a result. A relative newcomer to the cybersecurity ETF space, the Global X Cybersecurity ETF (BUG -2.37%) launched at the end of 2019. The fund managed $797 million in assets in early 2025 and has an expense ratio of 0.5%.

Cybersecurity threats continue to rise, and companies across sectors anticipate increasing spending on defense measures to prevent or lessen the damage caused by these attacks in the future. According to a recent survey of more than 1,000 executives across industries by Deloitte, 57% of respondents expect their companies to boost cybersecurity spending over the coming 1-2 years. Consequently, the market for cybersecurity services is expected to grow by 12.9% CAGR until 2030, reaching $500B and more than doubling from the current $245B. This is a big value-add, as it can reduce recovery time from weeks to hours, allowing customers to commence operations much faster.

• More people than ever are using the web for everything from entertainment to work.
• In fact, AI is already pushing global power grids to the brink.
• Work is not done in one office but remotely by delocalized teams, often in multiple countries.
• The company posted 13% improvement to its diluted EPS and operating cash flow of $158 million, more than 25% higher than the prior-year quarter.

Why should you consider investing in cybersecurity stocks?

However, almost 45% of the fund is invested in Apple and Microsoft. Rubrik also narrowed its expected adjusted losses for the year. On the positive front, Okta is seeing strong early traction for its newer products, such as Identity Governance, Privileged Access, and Identity Threat Cyber security stocks Protection powered by Okta AI. The company is also combining its Identity Security Posture Management tools with Privileged Access to help address the rising security risks related to AI agents and other non-human identities.

Microsoft is a pricey stock, but it is also a lynchpin in the entire framework of IT given decades of savvy investment, innovation and development, smart distribution strategies and relationships with corporations. The company is highly diversified, with multiple product lines for consumers and for corporations. With so much software for endpoints, servers, networks and cloud computing, it would be difficult for the company not to be. “They’re the biggest security company in the world,” says Koujalgi. Microsoft disclosed $10 billion annual business in cybersecurity alone in 2020. Microsoft provides diversity in security products, industries served, geographic regions and sizes and types of customers.