Palo Alto Networks is the largest pure-play cybersecurity operation by revenue and market cap. 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.

Admittedly, though, for this relevance, investors are paying a bit of a premium, especially as the company’s financial and profitability strengths are middle of the road. One of the most important companies among the best cybersecurity stocks to buy, A10 leverages the artificial intelligence protocols to provide automated protection against distributed denial-of-service (DDoS) attacks. Further, per its website, 57% of A10 customers report improved security, with 43% reporting reduced costs. CrowdStrike ($17 billion, $481 million revenue) offers a cloud-delivered endpoint protection platform, which relies on lightweight software running on the customer’s servers or laptops. These applications, in turn, send data to a cloud-based security system that analyses threats. The stock is up by over 60% year-to-date, as the coronavirus pandemic has expanded the company’s addressable market meaningfully.

Fortinet

Moreover, IT spending by corporates, in general, is likely to pick up from this year, after they scaled back on spending in 2020 due to Covid-19. This should bode well for companies that provide software, hardware, and services that help protect computer systems and networks. Our indicative portfolio of Cyber Security Stocks has declined by about -1% year-to-date, underperforming the S&P 500 which has gained about 10% over the same period. However, the theme remains up by over 130% since the end of 2019, significantly outperforming the broader markets. The recent sell-off comes as investors book profits on remote working and SaaS stocks that rallied big through the pandemic. However, this could present a good opportunity for investors to enter the cybersecurity space.

If you’d rather not have to choose among individual cybersecurity stocks, you can consider several exchange-traded funds (ETFs) that enable investors to participate in the growth of the cybersecurity industry as a whole. As a content delivery network (CDN), Akamai (AKAM -1.05%) ensures that data securely arrives at its intended destination. With the amount of data traveling across the internet steadily on the rise, CDNs are becoming increasingly important. 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 Israel-based Guardicore in 2021 and cloud infrastructure platform Linode in early 2022.

Cybersecurity stocks expected to see a long secular growth story, says Chantico’s Gina Sanchez

According to Cybercrime Magazine, the global cybercrime cost is expected to reach $10.5 trillion annually by 2025. This has made more and more organizations employ cybersecurity companies for protecting their sensitive information. The increase in demand for cybersecurity companies makes cybersecurity stocks a beneficial investment option today.

• Founded in 2007, Zscaler (ZS, $110.25) is one of the early players in the cloud-based cybersecurity market.
• The coronavirus emergency and shift to remote work has accelerated the growth of cloud-based network security.
• Legacy security vendors refer to companies that have been providing traditional security solutions for a long time, typically before the advent of cloud computing and the widespread use of mobile devices.
• Cloud security involves a combination of physical, administrative and technical controls that safeguard cloud infrastructure, network connections and data.

Cybersecurity involves the protection of devices, data, and networks from external illegal access. Cybersecurity companies offer services and solutions to protect information and data from disruption. Further, it behooves an investor to https://investmentsanalysis.info/ know which cybersecurity stocks address ransomware, phishing or other kinds of cyberattacks. “The cybersecurity startup ecosystem is flooded, with 3,000 security vendors reported by CyberDB,” Baird analyst Shrenik Kothari said in a note.

Best Cybersecurity Stocks to Buy Heading into 2023

Once you have identified potential cybersecurity companies, you can analyze them to determine their financial health, competitive positioning and growth potential. To assess the company’s financial health, you can look at key financial metrics such as revenue growth, profit margins and cash flow. Additionally, you can review industry reports and news articles to understand the company’s competitive positioning and growth prospects. Analyzing companies this way will help you find record-setting cybersecurity stocks in which to invest.

This data – which gives off from more than 300 trillion signals – has been invaluable for leveraging artificial intelligence (AI) and machine learning. It’s also why in addition to being one of Wall Street’s best cybersecurity stocks, ZS also tends to Cyber security stocks pop up on lists of the best AI stocks. But with valuations down, this does look like a good opportunity for investors, especially for those with a long-term perspective. For the most part, the growth prospects for cybersecurity stocks remain strong.

Okta

Not many people would dispute the importance of cybersecurity in organizations. Cyberattacks are up over 500% since the start of the COVID-19 pandemic. Cybersecurity is extremely difficult because it is fluid, and cybercriminals are constantly finding new and creative ways to breach systems.

And even amid a potentially slowing economy, there’s still reason to be optimistic about CrowdStrike’s continued growth as well. The company’s management said that sales will reach an estimated $3 billion in the current fiscal year, up 34% from the year-ago quarter. Also, Fortinet competes with Palo Alto Networks and others in the firewall security market. They block unauthorized traffic and check web applications for malware.

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It also helps to ensure compliance with regulatory requirements such as HIPAA, PCI DSS and GDPR. That’s where CrowdStrike Holdings (CRWD) and Palo Alto Networks (PANW) come in. These two companies are not just providing vital cybersecurity services, but they’re also experiencing impressive growth. Here’s why these companies could end up being long-term winners in the decade ahead. Cloudflare’s (NET -1.55%) mission is to help “build a better internet.” Cloudflare is actually a network. Cloudflare enables a faster and more secure internet for anyone with an internet presence.