Here are seven cybersecurity stocks to buy and hold for safe gains in the future. The platform is called Singularity XDR and it has various autonomous capabilities. These include providing real-time monitoring for all endpoints, IoT, cloud containers and cloud workloads. Its solutions include single sign-on, multi-factor authentication, directory services and lifecycle management. These are available on-premises, the cloud and the hybrid cloud. Truist starts Fortinet at Buy on balanced approach to growth and profitability Truist analyst Junaid Siddiqui initiated coverage of Fortinet with a Buy rating and $82 price target.
A life-long gamer and tech enthusiast, he has a particular affinity for analyzing technology stocks. Muslim holds a bachelor’s of science degree in applied accounting from Oxford Brookes University. The ETF is composed of 37 stocks in the cybersecurity industry and has an annual expense ratio of 0.6%, making it an affordable option. The premium-priced stock has been hit hard in 2022, but CrowdStrike’s sales have been booming nonetheless. In an increasingly mobile world with more devices continually coming online, CrowdStrike is poised to continue growing at a brisk rate.
It operates a cloud-based endpoint security platform, which puts it in competition with CrowdStrike. Its ability to automatically detect and resolve cybersecurity threats is being well-received in the market. Also, many fast-growing cybersecurity firms are in the endpoint market. Their tools detect malware on laptops, mobile phones and other devices that access corporate networks.
Cybersecurity Stocks to Buy Now
Technology that helps the digital world to stay safe is rapidly evolving and proliferating, and cybersecurity companies will reap the financial benefits accordingly. Its initial public offering in June 2021 raised $1.2 billion in cash and valued the company at $10 billion, making SentinelOne’s IPO the largest ever for a cybersecurity company. However, a rough go for the stock market in 2022 and slowing revenue growth at SentinelOne has sent the stock below its IPO price. Zscaler got started with a software-as-a-service product designed for cloud computing protection, but it has since added new internet security and end-user monitoring products. End-user monitoring is increasing with so many people now working from home.
The company uses AI to help automate the process of monitoring large and complex sets of data, relieving some of the burden of busy IT teams. It’s also been steadily expanding its platform’s capabilities with new modules that include cloud-based security and data monitoring. As a high-growth segment of the tech industry, cybersecurity offers investors lots of upside in the decade ahead. This type of identity management constantly requires verification of a user before allowing access to data and applications. If legacy security is a castle with a wall and a moat, then zero-trust security acts more like a counterspy agency.
And, according to the firm Cybersecurity Ventures, cumulative global spending on cybersecurity products and services will climb to $1.75 trillion between 2021 and 2025. If you’re an investor who’s measuring your time horizon in years, perhaps even decades, now is a great time to look at cybersecurity stocks. It is an alternative to the traditional approach to cybersecurity, which has focused on on-premise corporate networks. Another reason OKTA is on this list of the best cybersecurity stocks is that the company has over 17,600 customers. In fact, one of the latest is OpenAI, which is the creator of the hugely successful ChatGPT app.
Some cybersecurity firms aim to use artificial intelligence to get an edge on hackers. Fortinet reported fourth-quarter earnings, revenue and billings that topped estimates. However, FTNT stock has dropped out of the IBD 50 roster of growth stocks. Cloud security firm Wiz recently raised $300 million at a $10 billion valuation. The big question is whether the banking crisis will slow venture capital investment in the sector. But the IBD Computer-Software Security group ranks only No. 104 out of 197 industry groups tracked.
Cloud security, identity management, and legacy security vendors
The offers that appear in this table are from partnerships from which Investopedia receives compensation. Investopedia does not include all offers available in the marketplace. Gartner predicts that, by 2025, 45% of organizations worldwide will have experienced attacks on their software supply chains, a threefold increase from 2021. Executives in charge of this area will have to partner with other departments to prioritize this risk and put pressure on suppliers to demonstrate security best practices. This is the third time that I’ve put CRWD strike on this list, and the stock has done nothing but move lower since I started recommending it.
Security firms verify the identity of network users and limit access to applications. The coronavirus emergency and shift to remote work has accelerated the growth of cloud-based network security. So the industry now has a new term for the infrastructure that supports distributed workers and branch offices. Further, it behooves an investor to know which cybersecurity stocks address ransomware, phishing or other kinds of cyberattacks. In a recent initiation on cybersecurity stocks, Goldman Sachs analyst Gabriela Borges pointed to long-term trends. «The cybersecurity startup ecosystem is flooded, with 3,000 security vendors reported by CyberDB,» said Baird analyst Shrenik Kothari in a report.
CrowdStrike Holdings
The company has developed systems to detect patterns and provide insights – in massive data sets – for advanced network threats and risk assessments. Palo Alto Networks’s stock price is currently $193.25, and its average 12-month price target is $226.33. Investors responded positively to news of the company’s third-quarter earnings, which exceeded expectations. A 106% surge in revenue resulted in an adjusted EPS of 16 cents, bringing in a much-needed windfall of profits.
It’s also why in addition to being one of Wall Street’s best cybersecurity stocks, ZS also tends to pop up on lists of the best AI stocks. The Global X Cybersecurity ETF provides investors with a reliable source of exposure to 27 cybersecurity stocks, making it a highly concentrated fund. Furthermore, software companies represent 57% of the fund’s top holdings, which tend to be more valuable than traditional hardware companies.
PLTR’s long-term partnership with the U.S. government and its ability to continuously produce stable revenue are reasons why many investors remain confident in the company’s future. Despite current short-term issues, several analysts still believe that Palantir will be able to generate strong gains in terms of revenue and earnings in the future. Additionally, the stock is down substantially and trading at a massive discount based on its tremendous outlook ahead. Cybersecurity ETFs are another great option and can be purchased with your favorite cybersecurity stocks. For all of your investments, stay focused on the long-term potential of these fast-growing companies.
You can learn more about the standards we follow in producing accurate, unbiased content in oureditorial policy. Currently, 60% of knowledge workers are remote, and at least 18% will not return to the office, Gartner research said. Corporate security managers are urged to look beyond traditional approaches to security monitoring, detection, and response to manage these wider risks. But almost exclusively, PLTR stock has gone down since that time. Yet it looks like Splunk’s restructuring is starting to make an impact. In the fourth quarter, revenues jumped by 39% to $1.25 billion and the net income came to $269 million.
The deal represented a 53% premium to ForgeRock’s closing share price on Oct. 10. Meanwhile, the iShares Expanded Tech-Software ETF for software growth stocks has gained 17% in 2023. Sign Up NowGet this delivered to your inbox, and more info about our products and services. Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate.
But there is reason to be optimistic about its long-term outlook. The company has the cash on hand to meet its financial obligations. And analysts, on average, give the stock a price target of $195 which is about 75% above its current price. And itsZero Trust Exchange allows all users of networks to safely browse the internet and access applications no matter what device they’re on or where they are.
Varonis initiated with an Overweight at Stephens Stephens analyst Brian Colley initiated coverage of Varonis Systems with an Overweight rating and $32 price target. Hence, it is set to continue its impressive sales growth streak and is confidently projecting a 22% three-year compound annual growth rate by 2025. Holding 60 stocks, the ETF invests in many relatively small companies in the cybersecurity industry. The fund manages $1.5 billion of assets and also has an expense ratio of 0.6%. SailPoint, an identity management software maker, is among companies that garner more than 10% of revenue from government agencies. Earlier, Thoma Bravo acquired Ping Identity Holdings for $2.8 billion.