Invest in these top cybersecurity stocks to buy for growth as cybercrime rates rise
Cybersecurity remains one of the hottest investment ideas in 2024. Cybercrime is increasing at an accelerating rate every year, with an estimated 343 million victims in 2023. Furthermore, from 2021 to 2021, data breaches rose by an alarming 72%, comfortably outpacing this. previous record. Therefore, betting on the best cybersecurity stocks to buy is as important as ever.
Technology is rapidly evolving and cyber threats are increasing in complexity and frequency. A quick look at the impressive financials of some of the leading cybersecurity stocks featured in this article illustrates the mission-critical nature of this sector. Therefore, the long-term importance of cybersecurity is increasing, and we believe that cybersecurity stocks are poised for significant upside in the future. Here are three of his companies with strong financials, attractive shareholder benefits, and impressive long-term prospects.
Fortinet (FTNT)
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fortinet (NASDAQ:FTNT) remains a major player in cyber defense and specializes in providing sophisticated firewall solutions. The company has established itself as one of the leading contenders in the fast-growing Secure Access Services Edge (SASE) market, offering integrated networking and security solutions both on-premises and in the cloud.
Unlike competitors who struggle to offer a complete suite of SASE features, Fortinet excels with a two-pronged approach. First, we utilize custom silicon development to handle heavy-duty network and security functions. He will then be able to layer his products with the all-encompassing FortiOS operating system, effectively incorporating all the functionality he needs into a single FortiGate appliance.
Additionally, the company's recently announced financial results beat analyst expectations in both areas, but the stock price fell after the earnings call due to softer sales forecasts. The market is overreacting, given that the product sector is facing tough business results. Panic buying during the pandemic has only increased sales significantly.
Zscaler (ZS)
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Z scaler (NASDAQ:ZS) is a leader in cloud-based security, offering a robust platform and solid security framework trusted by over 7,500 customers to ensure secure access to cloud resources. Additionally, the majority of these customers are large enterprises, contributing more than $1 million in annual recurring revenue (After arrival).
The company's financials are nothing short of a visual feast. Going back to the third quarter of 2019 (Q3), both lines comfortably beat analyst expectations. Moreover, its growth and profitability metrics are very strong, contributing to ZS stock's 186% rise over five years.
The second quarter (Q2) saw even more impressive results, with sales of $35.4 billion, an increase of 35.4% on a year-over-year (YOY) basis. Additionally, his non-GAAP EPS was 76 cents, beating expectations by 18 cents. Zscaler also provided an optimistic outlook for fiscal year 2024, predicting sales to reach $2.1 billion, representing 31% year-over-year growth.
Darktrace PLC (DRKTF)
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Cybersecurity and AI are a powerful combination, and AI's predictive analytics can significantly improve threat detection and response times. Through AI, cybersecurity defenses can become more dynamic and proactive against advanced attacks. Perhaps one of the companies that understands AI and cybersecurity the best is: Darktrace PLC (OTCMKTS:DRKTF)
It provides powerful tools to efficiently measure an organization's IT behavior using AI. Once this data is collected, AI can effectively identify network anomalies typical of cyberattacks. Additionally, the company claims that the service can interrupt ongoing attacks in seconds.
The company's performance has been excellent, with double-digit year-over-year growth across key revenue and profit metrics. The company's free cash flow per share went from negative $4.26 in 2019 to positive within five years. Furthermore, it has amassed a huge annual recurring revenue base, a figure that grew by almost 30% to $545.4 million in fiscal year 2023.
On the date of publication, Muslim Farooq did not have (directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer and are subject to InvestorPlace.com Publishing Guidelines.
