Ransomware attacks remain prevalent, and these top cybersecurity stocks have solutions
2023 was a record year for ransomware attacks, with companies like: MGM Resorts International (New York Stock Exchange:MGM) has been under highly publicized attack. Despite the efforts of companies and regulators, this trend will continue unabated in 2024. The only defense is to increase investment in cybersecurity, which will benefit top cybersecurity stocks.
Although regulators are trying to crack down on ransomware attacks, hackers continue to launch more serious attacks. Companies themselves cannot afford to be complacent given the risk of loss. Additionally, with SEC disclosure regulations in place, cyber threats must be strengthened.
Recently united health (New York Stock Exchange:UNH) The threat level remains pervasive, as ransomware attacks have shown. Chief information security officers are investing heavily in security to reduce compliance requirements and financial losses.
Businesses are now prioritizing all areas of cyber, from firewalls to endpoint security to access management. This means more dollars will be invested in these top cybersecurity stocks that offer the best security products.
Palo Alto Networks (PANW)
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palo alto networks (NASDAQ:Panwoo) has grown from a firewall company to one of the top stocks in cybersecurity. Today, it is a comprehensive cybersecurity platform and a leader in over 21 cybersecurity categories.
It offers three main protection platforms: network security, cloud security, and security operations. Each platform has several products recognized as industry leaders. For example, when it comes to network security, we are a category leader with next-generation firewalls, Secure Access Service Edge (SASE), Security Services Edge (SSE) and six other products.
Palo Alto provides a compelling case for enterprise customers seeking vendor consolidation. Moreover, its products are recognized as its leaders. For example, Gartner recognizes Palo Alto as a leader in its Magic Quadrant for Single Vendor SASE, Endpoint Protection Platforms, Security Services Edge, Network Firewalls, and SD-WAN.
In February, PANW stock was sold off after the company's earnings report due to its platform efforts. That being said, revenue increased 19% year over year to $1.98 billion, which was also a solid report. Additionally, despite the strategic shift to accelerated platformization, management expects its fiscal year 2024 revenue to increase by 15% to 16%.
Palo Alto Networks will continue to profit from cyber spending and benefit from vendor consolidation. Buy stocks in this bearish situation.
Crowd Strike (CRWD)
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Endpoint security is one of the areas businesses are focusing on to prevent ransomware attacks. As one of the best endpoint platforms, cloud strike (NASDAQ:CRWD) is ready to profit from your security investment.
For years, industry research has ranked CrowdStrike's Falcon platform as one of the best security platforms. In 2023, Gartner named the company a leader in endpoint security platforms among 16 vendors it evaluated. Its Extended Detection and Response (XDR) platform was rated highest for its execution ability and completeness of vision.
CrowdStrike leverages its leadership and cloud-native platform to deliver impressive free cash flow while maintaining industry-leading growth rates. Revenues for the full year 2024 rose 36% to $3.06 billion. Meanwhile, free cash flow increased to $938.2 million from $676.8 million in fiscal 2023.
Additionally, the company expects strong fiscal 2025 as customers increase adoption of its Falcon modules. It expects total revenue to be between $3.924 billion and $3.989 billion, representing growth of at least 28%. This is why analysts are so bullish on CRWD stock.
CrowdStrike currently has a buy consensus among analysts, with 38 rated it a buy and 7 rated it an overweight. No analysts rate the stock as Sell or Underweight, making it one of the top cybersecurity stocks. Additionally, the average price target of $398 implies an upside of over 30%.
Sentinel One(S)
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sentinel one (New York Stock Exchange:S) has the highest earnings growth rate among top cybersecurity stocks. The company's AI-powered security solutions are gaining strong demand from large and mid-sized enterprises. As a result, revenues for fiscal years 2023 and 2024 increased by 106% and 47%, respectively.
Despite this impressive growth rate, investors have been slow to embrace the stock due to low profitability. However, management has stated that it will focus on improving profitability and profit margins in fiscal 2025. I think there is significant upside potential for S shares, especially after conservative guidance sells him at Q4 2024 earnings.
SentinelOne's competitive position in endpoint security has helped us continue to win in business. In the fourth quarter of 2024, we had 1,133 customers with annual recurring revenue of $100,000 or more, an increase of 30% year over year. In fact, growth has never been an issue for SentinelOne. Profitability is an issue.
The management team has set a goal of being profitable by the end of fiscal 2025. Non-GAAP gross margin of 78% in the fourth quarter is within long-term target range, and management expects his fiscal 2025 margin to be between 77.5% and 78.5%. The company also expects to achieve positive operating income and free cash flow by the end of the year.
SentinelOne's fiscal 2025 revenue outlook is $812 million to $818 million, representing 30% growth. Achieving profitability will be a turning point for this growth stock.
On the date of publication, Charles Munyi 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 influenced by InvestorPlace.com. Publishing guidelines.
