Over the past decade, the frequency and sophistication of malware attacks have increased dramatically across the globe, which is why we're calling for the best cybersecurity stocks to buy in 2024.
As cybercriminals develop more powerful techniques to infiltrate networks and steal valuable data, businesses of all sizes and in all industries are increasing their investments in cybersecurity. This surge in demand has caused the sector to grow significantly, making it an attractive investment. Moreover, the industry is still in its early stages, leaving plenty of room for long-term upside. As the fight against cyber threats intensifies, investors can profit from this fast-growing sector.
So let’s take a look at the top cybersecurity stocks to buy in May 2024.
Fortinet (FTNT)
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Fortinet (Nasdaq:FTNT) stands out as the best cybersecurity stock to buy in 2024. Founded over 20 years ago, the company specializes in firewalls, threat detection, and endpoint security.
Fortinet's flagship product, the FortiGate firewall, is known for its high performance and integrated security features. It offers comprehensive protection against a wide range of cybersecurity threats and is ideal for mid- to large-sized enterprises. Coupled with an expanding portfolio that includes cloud security, endpoint protection, and secure networking, the company has solidified its position as a leader in the space. In FY23, the company achieved record revenue, profit, and FCF from operations. It also achieved a very exciting milestone of exceeding $1 billion in net income for the first time.
Qualis (QLYS)
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Qualis (Nasdaq:Crease) is a small-cap cybersecurity stock with the potential to outperform. The company specializes in cloud-based security solutions and has seen its profitability explode since the pandemic began.
Qualys cloud-based platform is known for its superior performance and reliability. Qualys Enterprise TruRisk platform is one of the most recognized and valued vulnerability management solutions in the market. It uses a risk-based approach to access and manage real-time threats and integrates point solutions for risk mitigation business. Additionally, the platform also leverages AI for threat detection and compliance monitoring.
In fiscal year 2023, Qualys' revenue grew 13% year over year to $553 million. EPS increased 47% year over year to $4.03 per share, and FCF reached a record high of $236 million. The company's commitment to continuous improvement and leadership in vulnerability management solutions is unwavering. This is why Qualys has maintained stable revenue growth and profits, making it an attractive choice for investors looking to invest in the cybersecurity space.
CACI International (CACI)
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CACI International (New York Stock Exchange:Canada) is a low-profile company that presents a compelling case as one of the top cybersecurity stocks. The company primarily provides software and cybersecurity solutions to intelligence, defense, and federal civilian agency customers.
CACI International has expertise in cybersecurity signals intelligence and electronic warfare, playing a key role in defending against malware attacks. The company's software solutions are designed to protect critical infrastructure and sensitive information from buyer threats, making it a valuable asset in threat detection.
The company has long-term contracts with U.S. government agencies, giving it a stable and predictable revenue stream, boosting investor confidence. In its most recent quarterly results, revenue increased 11% year over year to $1.94 billion. Net income increased 14.5% to $115.4 million, or $5.13 per share. Additionally, adjusted EBITDA margins increased 200 basis points to 11.3%. With management raising its fiscal 2024 guidance for the third time, CACI stock could see its next upswing in 2024.
As of the date of publication, Terrell Miles did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are the opinions of the author in accordance with InvestorPlace.com's terms and conditions. Publication Guidelines.
