It operates a cloud-based endpoint security platform, which puts it in direct competition with CrowdStrike. Its ability to automatically detect and resolve cybersecurity threats is well-received in the market. As cyber threats become more sophisticated, Palo Alto Networks’ AI-powered platform gives it a competitive edge. These innovations are likely to accelerate customer adoption, drive upselling and support strong long-term revenue growth for this Zacks Rank #2 company.

In fact, it’s sitting on a war chest of cash—equal to nearly one-third of its entire market cap. Each data center powering large language models like ChatGPT consumes as much energy as a small city. But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible. 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.

  • Here are six of the best cybersecurity stocks to buy as growth in the industry ramps up.
  • Cybersecurity ETFs are another great option and can be purchased with your favorite cybersecurity stocks.
  • Bulleted metrics come from stockanalysis.com, except for the FCF per share, which was calculated from company financial releases.
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  • In the third quarter 2024, Rapid7 grew sales 8% year-over-year, and produced FCF of $39 million.

Data analytics software is a large, fast-growing segment of the tech world, which bodes well for Datadog. Elastic (ESTC +1.69%) and Dynatrace (DT -2.16%) are two other promising software makers to consider in this space. Because it’s cloud-based, CrowdStrike is particularly well suited for supporting remote work. 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.

Zacks’ 7 Strongest Buysas 2026 Approaches

Businesses often have a complicated web of stakeholders, including employees, third-party contractors, suppliers, and customers. 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. Despite the slowdown, this small company still more than doubled its sales in 2022, followed by strong increases in 2023 and 2024. The company has steadily increased the number of modules on its platform to help its customers. It also has new integration agreements with other tech companies to make data protection more consistent across an organization’s IT infrastructure. These features drastically reduce manual effort, audit fatigue and risk for enterprise customers.

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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. Most of First Trust’s ETF holdings are mid- and large-cap stocks in the technology sector. Most of the stocks here are pure-play cybersecurity stocks, but many companies operate in complementary industries such as aerospace and defense. Three of the stocks mentioned above are in its top five holdings.

But we also like to teach you what’s beneath the Foundation of the stock market. We also offer real-time stock alerts for those that want to follow our options trades. You have the option to trade stocks instead of going the options trading route if you wish. Last on this list is Cisco, one of the world’s leading digital communications technology conglomerates.

First Trust Exchange-Traded Fund II – First Trust Nasdaq Cybersecurity ETF

Here are six of the best cybersecurity stocks to buy as growth in the industry ramps up. Analysts appreciate Elastic’s position in AI and cybersecurity, two fast-growing industries. Wedbush analyst Daniel Ives has cited AI as the bigger growth engine for Elastic. Ives believes Elastic will see continued strong demand for its platform as the AI revolution continues.

ETFMG Prime Cyber Security (NYSEMKT: HACK)

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  • But leadership at Qualys was convinced the SaaS approach was superior, creating advantages on cost efficiency, scale, real-time monitoring and collaboration.
  • The company uses AI to help automate the process of monitoring large and complex data sets, relieving some of the burden of busy IT teams.
  • As the world chases faster, smarter machines, a hidden crisis is emerging behind the scenes.
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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. A relative newcomer to the cybersecurity ETF space, the Global X Cybersecurity ETF (BUG +0.32%) launched at the end of 2019. The fund managed $1.1 billion in assets in the summer of 2025 and has an expense ratio of 0.5%. The Global X Cybersecurity ETF held 24 stocks in its portfolio. 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.

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Datadog (DDOG)

MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on… It’s delivering real cash flows, owns critical infrastructure, and holds stakes in other major growth stories. In fact, Verge argues this company’s supercheap AI technology should concern rivals. What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution. The opening of security centers around the globe positions Radware to mitigate attacks near their point of origin adequately.

Okta has strong market positioning, good growth history and a solid customer list. 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 cyber security stocks leadership team expects 15% sales growth and a FCF margin of 25%.

Zscaler

Palo Alto Networks recently supported 74 contracts at over $5 million, up 25% year over year. Tenable’s acquisition of Vulcan Cyber is a key strategic investment in exposure management. “The attached rate of Purple AI across all eligible endpoints doubled compared to Q2,” said Weingarten during SentinelOne’s fiscal 2025 third-quarter earnings call. TotalAI handles the OWASP Top 10 most critical risks for LLMs, such as prompt injections, model theft, and the disclosure of sensitive information. Despite all these efforts, Qualys has seen a deceleration in growth.

Check Point has continued to focus on innovation and now has several cybersecurity platforms. There’s much more runway left for the growth, as the sweet spot for this strategy is about 5,000 customers. And that makes PANW one of the best cybersecurity stocks to buy. 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.