Top Cybersecurity Shares Worth Investing in by 2025
Executive leaders have recently identified cyber and technology risks as major threats to business growth, according to a survey from insurer Chubb. Over 40% of executive respondents noted that cyber threat monitoring is an essential function within their organization. This trend is expected to grow as the cybersecurity landscape becomes more complex due to factors such as hackers using AI technology, rising geopolitical tensions, and the increase in data protection regulations.
This fast-changing environment presents opportunities for the best cybersecurity stocks to thrive. Proven cybersecurity providers will become invaluable to their customers and gain pricing power as a result. To take advantage of these trends, consider adding targeted cybersecurity exposure to your portfolio.
Here are six cybersecurity stocks with growth potential in 2025 and beyond:
1. CrowdStrike (CRWD)
CrowdStrike is a leader in AI-powered cybersecurity solutions, and its robust threat detection and proactive defense strategies have helped drive significant growth. The company has a strong track record of earnings, and its Q4 earnings report and projected revenue growth place it in a favorable position for continued success in 2025.
2. Fortinet (FTNT)
Fortinet is a global leader in cybersecurity solutions, and its Q4 earnings report and projected revenue growth have surged to new all-time highs in early 2025. The company's impressive financial performance and position as a market leader make it a standout stock in the cybersecurity sector.
3. CyberArk Software (CYBR)
CyberArk specializes in identity security solutions, and its 15% year-to-date surge has outperformed many peers. The company's strategic partnership with SentinelOne to enhance threat detection and response further strengthens its position in the cybersecurity market.
Methodology Used for These Cybersecurity Stock Picks
To identify the best cybersecurity stock picks, we began by listing the holdings within the WisdomTree Cybersecurity Fund (WCBR) and Global X Cybersecurity ETF (BUG). We then removed stocks listed on foreign exchanges, stocks with fewer than 10 covering analysts, and stocks with consensus price targets that are not at least 10% higher than the current trading price. From the remaining nine cybersecurity stocks, we ordered them by free cash flow per share (highest to lowest) and dropped the bottom three.
4. Check Point Software Technologies (CHKS)
Check Point is a veteran in the cybersecurity field and has remained a market leader for many years. Its comprehensive cybersecurity offerings and strong financial performance make it a reliable choice for investors looking for long-term growth.
5. Palo Alto Networks (PANW)
Palo Alto Networks is a leading provider of network security solutions, and its strong growth and earnings performance position it as a top choice in the cybersecurity sector. The company's focus on AI and automation will further help it stay ahead of evolving threats and meet the needs of its customers.
6. Cybereason (CYBR)
Cybereason is a newer player in the cybersecurity market, but its focus on endpoint security and its innovative AI-powered technology have helped it quickly gain traction. The company's strong growth prospects, as well as its backing from major investors like SoftBank and Alenia Capital Partners, make it a promising addition to this list.
In conclusion, the cybersecurity landscape is constantly evolving, and proven providers will become increasingly valuable to their customers. By adding targeted cybersecurity exposure to your portfolio, you can capitalize on this trend and position yourself for long-term success.
In this fast-paced cybersecurity landscape, companies with robust AI-powered solutions, like CrowdStrike and Cybereason, are seeing significant growth due to their effective threat detection and defense strategies. These firms, such as CrowdStrike with its strong earnings and projected revenue growth, are gaining pricing power and becoming invaluable to their clients.
Investors looking for long-term growth in the cybersecurity sector might consider adding proven providers to their portfolios. Firms like Fortinet, with their impressive financial performance and market leadership, offer attractive opportunities for profitability.
