For instance, its operating margin of nearly 8% exceeds the industry median of 3% quite significantly. Cisco is also the only stock on this list that offers its shareholders a dividend (2.94% annual dividend yield). Thus, Cisco is a good candidate if you are looking for a company that is invested in cybersecurity and other tech sectors.
Year to date total return was 14.8% and HACK has a yield of 0.18%, with a net expense ratio of 0.60%. Top holdings include Zscaler, Booz Allen Hamilton, Fortinet, Palo Alto Networks and Leidos. 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. However, for corporations and institutions, bringing together a growing and shifting set of products creates some significant challenges, causing a change in behavior. Food, shelter, energy, water — traditional things people can’t do without.
- With global security spending continuing to rise, these cybersecurity stocks are worth a closer look.
- The company is best known for its Elasticsearch application, used by popular apps like Uber, Instacart and Tinder.
- Year to date total return was 14.8% and HACK has a yield of 0.18%, with a net expense ratio of 0.60%.
- Despite this rapid share price climb, Rubrik’s price-to-sales ratio remains a competitive 15.5.
As cyberattacks, including ransomware, grow in frequency and sophistication, businesses, governments, and individuals are investing heavily in security solutions to mitigate risks. As the internet was a catalyst for growth in the company’s early days, generative AI may provide a boost for CHKP in the current era. And that’s why it’s one of the best cybersecurity stocks to buy.
Therefore, for investors that prefer relative reliability in their market ideas, QLYS could be one of the best cybersecurity stocks to buy this month. As with some of the other candidates for best cybersecurity stocks, Qualys distinguishes itself with exceptional strengths. On the balance sheet, the company features a cash-to-debt ratio of 10.1, well above the industry median of 3.7.
Fortinet, Inc. (FTNT +2.9%)
- The company also completed a 3-for-1 stock split in September 2022.
- For each, check the current mix of holdings to be sure you get the diversity you want and not a collection that, with investment weights, is more like owning two or three individual stocks.
- TotalAI handles the OWASP Top 10 most critical risks for LLMs, such as prompt injections, model theft, and the disclosure of sensitive information.
- This is paying off, with the average Flex customer deal size now exceeding $1 million in annual recurring revenue.
- 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.
- “Some are fine with that because they don’t want to deal with 25 different vendors,” Koujalgi says.
Here’s what to know about cybersecurity stocks and ETFs, and how they respond to cybersecurity crises. NerdWallet, Inc. is an independent publisher and comparison service, not an investment advisor. Its articles, interactive tools and other content are provided to you for free, as self-help tools and for informational purposes only. NerdWallet does not and cannot guarantee the accuracy or applicability of any information in regard to your individual circumstances.
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Ikeda recently maintained a buy rating on DDOG stock and raised the price target—noting that the company’s long-term prospects without AI are still promising. That percentage will likely rise as the cybersecurity landscape gets more complex. A World Economic Forum analysis cites several factors that are creating more complexity.
The company has grown its revenues very quickly, by 50% CAGR since 2020, driven by the global wave of cloud computing adoption by companies of all sizes. The company also expects strong results from upsell (selling more to existing customers), with a 6x potential just from existing products. 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.
How to invest in cybersecurity stocks
Recently, the company has been focused on attracting more high-value contracts and innovating its offering to enhance upsell opportunities. For fiscal year 2025, the leadership team expects 15% sales growth and a FCF margin of 25%. Akamai has proven its ability to drive sales and earnings growth. Although the sales trajectory has been more linear than earnings, the company has the highest and most consistent operating margin among the stocks on this list. The idea of cybersecurity becoming obsolete is like imagining a world without the internet.
Feb 10 High Growth Cybersecurity Stocks To Buy
In fact, during the latest quarter, the company raised its fiscal 2025 revenue guidance to 32%. Dive into the AI gold rush and watch your portfolio soar alongside the brightest minds of our generation. While the world is distracted by flashy AI tickers, a few smart investors are quietly scooping up shares of the one company powering it all from behind the scenes. Each data center powering large language models like ChatGPT consumes as much energy as a small city. Below are the seven best-performing stocks in the Nasdaq CTA Cybersecurity Index that trade on major U.S. exchanges, ranked by one-year performance.
They include hackers’ use of AI technology, rising geopolitical tensions and the increase in data protection regulations. To add cybersecurity exposure to your portfolio, look for companies with strong growth Cyber security stocks records and … It’s also been steadily expanding its platform’s capabilities with new modules that include cloud-based security and data monitoring. Data analytics software is a large, fast-growing segment of the tech world, which bodes well for Datadog.
Our partners cannot pay us to guarantee favorable reviews of their products or services. We believe everyone should be able to make financial decisions with confidence. Executive leaders recently identified cyber and technology risk as primary threats to business growth, according to a survey from insurer Chubb. More than 40% of executive respondents noted that cyber threat monitoring is an essential function within their organization. Get stock recommendations, portfolio guidance, and more from The Motley Fool’s premium services.
Palo Alto Networks is this cyber security stocks largest pure-play cybersecurity stock by market cap and revenue. Its firewalls help offices and data centers fight data breaches. As companies go through an increasingly complicated cyber threat landscape, keeping up with developing cybersecurity trends has become critical. In addition, the cybersecurity industry is expected to grow at an annual rate of 12.4% between 2024 and 2027, surpassing historical growth rates as firms ramp up efforts to combat evolving threats. Check Point Software Technologies Ltd. develops and manufactures software and hardware products focused on cyber and IT security.
However, legacy companies generate ample profit margins and have the cash to make updates. Companies monitoring cloud-based operations and those managing web content and apps are also increasingly important to companies’ online security. The premium-priced stock was hit hard in 2022, and its security network suffered a painful outage in July 2024.
It has acquired over 10 smaller cloud companies, which helped develop its cloud security services. Its management predicts double-digit yearly revenue growth thanks to its security systems adapted to protect companies from all kinds of data breaches. Rubrik is rated a Strong Buy based on Wall Street analyst assessments, with 18 analysts giving a Buy rating and one a Hold. Several analysts increased their price targets for RBRK shares in the last two weeks of November, indicating a generally bullish outlook on the company’s stock price.
For investors looking for a good balance of sales and profitability growth, Fortinet is one of the best security stocks on the market. Zscaler started with a software-as-a-service (SaaS) product designed for network protection in the modern cloud computing era, but it has since added new internet security and end-user monitoring products. End-user monitoring is increasing with so many people now working remotely. 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. Check Point is a pure-play cybersecurity stock, working with more than 100,000 businesses around the world. The company’s Infinity platform includes artificial intelligence (AI)-powered tools to help customers protect network and cloud assets, as well as making remote work more secure.