But it might be the most important AI stock in the US owns critical energy infrastructure assets positioned to feed the coming AI energy spike. Built on Lacework technology, FortiCNAPP offers visibility and protection from the earliest stages of application development through to deployment and runtime. By correlating findings across different stages of the application lifecycle, FortiCNAPP helps organizations prioritize and respond to the most serious risks. Even with economic headwinds and geopolitical uncertainty, Arora emphasized the strength of Palo Alto Networks’ results, calling them “phenomenal” under the circumstances. According to Roosevelt Bowman, an investment strategist with Bernstein Private Wealth Management, the effect of major technical outages on cybersecurity companies is hard to predict. “It’s not often that you see a single event ‘doom’ a company,” Bowman says.

What are cybersecurity stocks?

With global security spending continuing to rise, these cybersecurity stocks are worth a closer look. It’s delivering real cash flows, owns critical infrastructure, and holds stakes in other major growth stories. Each of these ETFs gives investors exposure to dozens of cybersecurity stocks with a single purchase. The investing information provided on this page is for educational purposes only.

Zscaler (ZS)

• The following cybersecurity stocks have seen the best returns over the past year.
• Okta (OKTA -3.43%) is a pioneer of identity and access management, which rethinks traditional security by using zero-trust architecture.
• In the third quarter 2024, Rapid7 grew sales 8% year-over-year, and produced FCF of $39 million.
• Like its peer, Palo Alto Networks, it has maintained double-digit percentage growth and is highly profitable.

The cloud-first approach allowed it early on to bring together in one product what was and still mostly is a very fragmented industry. Fortinet’s business is less US-centric than many of its competitors, with the USA making only 25% of total revenues and 100+ countries making half of revenues. If you’re looking for new opportunities beyond the usual picks, this list might change your watchlist for July.

Best Momentum Cyber Security Stocks

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. The company also completed a 3-for-1 stock split in September 2022. Further, per its website, 57% of A10 customers report improved security, with 43% reporting reduced costs. They offer solutions for cybersecurity, analysis, domain registration, load balancing, and video streaming.

The System Flagging a Potential 50X Opportunity… Even in This Ugly Market

Its balance sheet isn’t the greatest in the world, although its profitability metrics are decent. To be fair, the robust attributes come at a cost of FTNT being considered modestly overvalued. However, based on a long-term technical profile, it appears that FTNT is setting up a bullish flag formation. Down about 7% YTD, it might be a solid name to add to your portfolio. The Bullish Bears team focuses on keeping things as simple as possible in our online trading courses and chat rooms.

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. Though GEN shares are up about 41% in the year leading to December 4, 2024, the company has a low price-to-sales ratio of just 5.1, suggesting that it may still be undervalued. The company is also leaning into AI with its Purple product, which allows security analysts to use natural language prompts to help detect complex threats and automate workflows. Purple is designed to run across third-party platforms like Zscaler and Palo Alto, which is a big advantage for customers in multi-vendor environments.

ETFMG Prime Cyber Security (NYSEMKT: HACK)

An investor could potentially lose all or more of their initial investment. Only risk capital should be used for trading and only those with sufficient risk capital should consider trading. Testimonials appearing on this website may not be representative of other clients or customers and is not a guarantee of future performance or success. Although cybersecurity is nowhere near Cisco’s largest market segment, it offers its clients a range of tools to protect them from data breaches. The following cyber securities companies’ stocks have the greatest change in YOY EPS. This metric change indicates that the company produces money that can be invested or returned to shareholders.

• However, in a recent earnings call, the company said the 2023 breach was no longer affecting results quantifiably.
• That not only reduces up-front work but should in theory improve ongoing efficiency in protection.
• Check Point has excellent operating margins, with its non-GAAP (generally accepted accounting principles) margins at 41% in the most recent quarter.

More people than ever are using the web for everything from entertainment to work. To bolster its network security offerings and protect its customers from ransomware attacks, Akamai acquired several smaller security specialists from 2022 to 2024. Datadog (DDOG -2.73%) is a cloud-native platform built to collect, monitor, and yield insights on cloud-based data and operations.

Zscaler, Inc. (ZS +1.38%)

Not only has Palo Alto’s stock increased by more than 200% in the last 5 years, but its revenue and profit margins have also steadily increased. Mainly, it is profitable, which many newer companies are struggling with. If you’re looking for an established company in the cybersecurity industry, Palo Alto is an excellent candidate. Booz Allen Hamilton Holding Corp. is another technology and management consulting company similar to CACI. The company provides the highest level of analytics, digital, engineering, and cyber solutions, among other services.

As AI agents begin taking on real operational autonomy — running manufacturing systems, customer service, and logistics — the threat landscape evolves rapidly. “Eventually, you’re going to have to give these agents true agency,” Arora warned, raising concerns that such systems could be hijacked if not properly secured. With AI and cloud infrastructure converging, cybersecurity is no longer optional — it’s foundational. Bowman says that his firm is “following” cybersecurity stocks, in light of the rising volume of consumer data that needs to be protected from threats. He notes that the shift from in-person shopping to online shopping over the last decade has created “opportunity” for the industry.

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. Also notable in this sector is the Cyber security stocks Amplify Cybersecurity ETF (HACK -2.01%). Holding 24 stocks, the ETF invests in many relatively small companies in the cybersecurity industry. The fund manages $1.9 billion in assets and has an expense ratio of 0.6%. A rough go for the stock market in 2022 and slowing revenue growth at SentinelOne sent the stock below its IPO price, and an 88% price jump in 2023 was not enough to regain the IPO level.

With these set to roll off, it should help reaccelerate growth. Meanwhile, CrowdStrike’s full-platform approach and strong market position give it a long runway for growth. While we acknowledge the potential of TLS, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe.

Cybersecurity Confidence: 3 of the Market’s Most Upgraded Stocks

Because it’s cloud-based, CrowdStrike is particularly well suited for supporting remote work. It shouldn’t be surprising that global spending on cybersecurity was expected to exceed $200 billion per year by 2028 and will likely continue to be a high-growth industry for years, according to research from IDC. Cybersecurity stocks are a red-hot niche of the tech industry, so knowing how to invest in them can yield some big returns in the decade ahead. Three of the best cybersecurity stocks you can buy in July are Check Point Software Technologies (CHKP -1.50%), International Business Machines (IBM -1.04%), and Broadcom (AVGO -1.48%). An intriguing catalyst for Fortinet is the company’s myriad financial strengths.