Cybersecurity is an industry that has seen its fair share of ups and downs, but one thing is certain: the threat of cyberattacks is only increasing. As a result, investors are looking for companies that can provide top-notch cybersecurity solutions to protect their businesses and assets. While tariffs have created uncertainty and volatility in the stock market, cybersecurity providers are less likely to be impacted. Cybercriminals and hackers aren’t downsizing their attacks due to tariffs, so these companies can continue to grow and thrive. In this article, we’ll look at four top cybersecurity stocks that investors might want to consider buying this month. These companies are leaders in their respective fields and offer a range of cybersecurity solutions that can help protect businesses and assets.
1. Palo Alto Networks (PANW)
Palo Alto Networks is a leading provider of cybersecurity solutions, and it’s undergoing a transformation from being largely a provider of next-generation firewalls to becoming a comprehensive cybersecurity platform. Last year, it embarked on a new “platformization” strategy where it stopped selling new point solutions and began consolidating customers onto one of its three main cybersecurity platforms.
- The platformization strategy has been successful, with 1,150 of its top 5,000 customers now using one of its platforms.
- The company hopes to have 2,500 to 3,500 platformization customers by fiscal year 2030.
Palo Alto Networks’ main platform is network security, but it has also seen significant growth coming from its threat detection and response solution Cortex, and its cloud security solution Prisma Cloud. While its platformization strategy temporarily slowed its growth, it was the right move for the long term, and investors should be rewarded.
2. CrowdStrike
CrowdStrike is another cybersecurity company that should benefit from the trend of companies looking to consolidate their cybersecurity needs onto a single platform. The company is best known as the leader in endpoint security, which is the protection of devices connected to a network, such as a smartphone or laptop.
- CrowdStrike offers a comprehensive suite of cybersecurity protection, including threat intelligence, zero trust, logscale SIEM, and cloud security.
- The company’s flexible licensing and procurement service, Falcon Flex, is helping drive adoption of its modules.
Falcon Flex gives customers the flexibility to quickly deploy CrowdStrike solutions when and where they need them. Last quarter, 67% of CrowdStrike’s customers deployed five or more of its modules, while 21% used eight or more. With the impact of its highly publicized information technology outage now in the rearview mirror, and customer commitment packages rolling off the books later this year, the company should begin to see growth start accelerating.
3. Zscaler
Zscaler is a leader in zero-trust security, a model based on the principle that no user or device should be trusted. Instead, access to applications and data must be continuously verified, authorized, and revalidated to ensure security at every step.
- Zscaler’s zero-trust solutions are gaining traction, including its Zscaler Private Access, which is being used to replace virtual private networks (VPNs).
- The company has also seen significant growth in its data security products, with a 40% increase in annual contract value last quarter.
Zscaler’s revenue is climbing 23% year over year last quarter, and its net dollar retention rate was 115%, showing its strong growth within its existing customer base. With zero trust and data protection becoming more important, Zscaler has a bright future.
4. SentinelOne
SentinelOne is a fast-growing endpoint cybersecurity company, trading at a low valuation. Its forward price-to-sales (P/S) multiple is only 6.6 times, despite having 29% revenue growth last quarter.
- SentinelOne has a big opportunity in the second half of the year, when personal computer (PC) vendor Lenovo will begin shipping its computers with SentinelOne’s Singularity Platform installed.
- The company’s Purple AI solution uses AI to help analysts detect complex security threats through the use of natural language prompts.
SentinelOne’s valuation and growth opportunities make it a stock investors can look to add to their portfolios.
| Cybersecurity Stock | Price | Growth Rate |
|---|---|---|
| Palo Alto Networks | $275.30 | 22% |
| CrowdStrike | $341.29 | 34% |
| Zscaler | $137.65 | 23% |
| SentinelOne | $8.49 | 29% |
In conclusion, cybersecurity is a rapidly growing industry, and these four companies are leaders in their respective fields. They offer a range of cybersecurity solutions that can help protect businesses and assets, and their growth prospects are strong. As the threat of cyberattacks continues to increase, these companies are well-positioned to benefit from the trend of companies looking to consolidate their cybersecurity needs onto a single platform. By investing in these cybersecurity stocks, investors can add a layer of protection to their portfolios and benefit from the growing demand for cybersecurity solutions.
