4 Best Cybersecurity Stocks to Watch in 2024
After the recent ransomware attacks on the US’s largest oil pipeline system, Colonial Pipeline, and the world’s largest meat producer, JBS, the interest in cybersecurity companies has risen dramatically.
If you’re interested in discovering some of the best cybersecurity stocks and ETFs (exchange traded funds) to invest and how to do so with competitive fees, then you are definitely in the right place! Let’s get to it.
Table of Contents
4 Best Cybersecurity Stocks to Watch Now
There is a large number of cybersecurity companies that provide critical support and services to businesses that operate online and through electronic communication networks.
Here is a quick list of some of the best cybersecurity stocks to watch this year. Be sure to keep on reading to learn how to invest in them with ultra-low fees and how to access premium stock research tools completely free.
- Zscaler (ZSUS)
- Fortinet (FTNT)
- Palo Alto Networks (PANW)
- CrowdStrike (CRWD)
All of these cybersecurity companies specialise in a different area of security. Fundamentally, they all focus on safeguarding data and systems from unauthorised users.
As more and more companies move online there is an increasing threat from cyber criminals. This is one reason why investors are keen to find and invest in the best cybersecurity stocks available.
Some of the top cybersecurity stocks are listed above and should serve as a great starting point for further research and analysis. In the next few sections, you will learn some of the most important details of these companies to help you build a cybersecurity stock portfolio.
How to Invest in Cybersecurity Stocks
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4 Best Cybersecurity Stocks to Buy: Research & Analysis
If you’re thinking about what to invest now and when to invest, then cybersecurity stocks should be towards the top of that list.
Below we go through some of the best cybersecurity stocks to consider for this year. As it is an in-demand stock sector, individual company share prices may exhibit more volatility than other blue-chip stocks.
Be sure to do some thorough fundamental research or technical analysis and always remember the risks to investing in anything!
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1. Zscaler (ZSUS)
Zscaler was founded in 2007 and became a publicly traded cybersecurity company in 2018. It is now listed on the Nasdaq stock exchange. This year, the cloud-based information security company had a market cap of more than $25 billion with more than 100 data centres around the world, serving customers in 185 countries.
The company’s services are rising in popularity too. More than 450 companies of the Forbes 2,000 list use Zscaler and they are an authorized partner for Microsoft Office 365. This statistic is only likely to grow as the world faces more and more threats from cybercrime.
In the last four-quarters, Zscaler achieved revenue of more than $125 million. In the last quarter, revenue was up 60% year on year at $176.4 million. However, the company’s net loss has been widening but this due to the fact they are focused on growth rather than profitability.
This means they are continually pouring money into marketing, growth and acquisitions – a clear long, term strategy. This is also reflected in the company’s share price shown above which is currently below its all-time high.
2. Fortinet (FTNT)
Fortinet is one of the oldest cybersecurity companies and has been around since 2000, achieving a market cap of more than $35 billion. The company develops and sells a whole range of different cybersecurity products and services. This includes firewalls, anti-virus protection, endpoint security components and much more.
Investors have enjoyed the company’s recent earnings announcement as they record an increase in revenue and increased forward guidance. The company has also been an aggressive expansion plan with more than 65 deals last year, including a $75 million investment into Linksys.
The improving fundamentals of the company and aggressive expansion plan have helped Fortinet to become a top cybersecurity stock for investors. The above chart shows the long-term trend of Fortinet's share price.
It’s clear to see the aggressive uptrend since 2016 with the price accelerating during the pandemic of 2020. With prices this elevated, some investors may tread with caution. These types of strong-trending market conditions may be more ideal for traders looking to trade momentum.
3. Palo Alto Networks (PANW)
Palo Alto Networks is a multinational cybersecurity company that was founded in 2005. Last year revenues topped $3 billion as the company services 70,000 businesses in more than 150 countries. The company was listed eighth in the Forbes Digital 100 list and they count 85 companies of the Fortune 100 list as a client.
The core focus of products offered by the company revolve around network security, advanced firewalls, cloud security, endpoint protection among other niches. Palo Alto Networks also operates Unit 42 which is an advanced threat intelligence team focused on finding new cyber threats and working with the FBI.
Palo Alto Networks has a very impressive track record of providing consistent sales, as well as shareholder return. As the longest standing player in the field, it’s a popular company for investors too. This is especially true due to the incredible dividends and buybacks given to investors over the past few years. With an impressive list of clients and a custom-built platform around its own product, it certainly is a stock to watch for the long term.
4. CrowdStrike (CRWD)
Crowdstrike was founded in 2011 and focuses on proactive and incident response services. Its products include cloud systems for threat intelligence, endpoint security and more. The company, with a former FBI official as one of its founders, has been active in the cyber attacks of Sony Pictures in 2014 and the Democratic National Committee (DNC) in 2016.
The company has posted an impressive performance in recent quarters which analysts say is supportive of its high valuation. Interestingly, it is a company that still has huge growth potential as it can tap into international markets.
Since the company’s initial public offering (IPO) launch in 2019, it has already become a market leader in the cybersecurity space. Crowdstrike is very well positioned to meet the issues faced by businesses today. Dealing with threats when they come is no longer viable. Companies must build the right infrastructure to mitigate threats in the first place.
This is where Crowdstrike shines as a cloud-based platform. Investors seem to agree as well. The stock price is trading much higher than when it first launched in 2019. As the current price is still trading below its all-time high price level there is potential for the stock to move back towards this level, making it a cybersecurity stock to watch for this year.
Conclusion: Best Cybersecurity Stocks
Did you know that ransomware demands amounted to nearly $20 billion last year? It’s significantly higher than the $11 billion the previous year and is set to continue. This has put a lot of pressure on companies to not just deal with cybersecurity threats but to build the right infrastructure and systems before the threat.
This is why the cybersecurity sector is now becoming very competitive. The growth potential for cybersecurity stocks is now very interesting. This is why investors are keen to focus on this sector and the companies leading the race forward. Some of the best cybersecurity stocks are listed in this article.
With Admirals, you can invest in cybersecurity stocks and thousands of other stocks from around the world with ultra low fees and a range of exclusive features such as the Premium Analytics Technical Insight Lookup indicator.
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