Add exposure to important growth areas such as cloud security and AI-powered defense
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It's no secret that businesses are increasing their security spending to combat growing threats. With the cybersecurity market expected to reach $183 billion worldwide this year, cybersecurity stocks have a huge opportunity for growth. As attacks increase in frequency and cost, businesses cannot afford to skimp on protection.
Savvy investors can benefit by adding exposure to leading cybersecurity stocks. The company's innovative portfolio spans key growth areas such as cloud security, critical infrastructure protection, and AI-powered threat prevention.
So for investors looking for technology exposure and defensive qualities, the following cybersecurity stocks are attractive choices.
Fortinet (FTNT)
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fortinet (NASDAQ:FTNT) is one of the most powerful cybersecurity stocks to buy right now. FTNT's leadership position in the $144 billion cybersecurity market and clear growth vision make it a clear choice.
FTNT's Q1 2024 financial results are impressive, so it's easy to support. Total revenue increased 7% year over year (YoY comparison) reached $1.35 billion, with a strong 24% increase in service revenue and a strong gross margin of 75.5%. The company holds an overwhelming share of his 50% in the global market in network security shipments. Additionally, its industry-leading product innovations have earned it more than 900 U.S. patents.
In addition, Fortinet is highly regarded by industry analysts and has been recognized as a leader in eight Gartner Magic Quadrants. The Fortinet Security Fabric platform powers enterprises' automated protection, detection, and response through AI-powered integration.More than 755,000 customers around the world already rely on Fortinet for security, and nearly three-quarters of them rely on Fortinet for security. fortune 100.
The company was also named Google Cloud's Technology Partner of the Year for Security in 2024. Fortinet's broad portfolio of integrated cybersecurity products is well-positioned to capture a share of the $222 billion total market expected to grow in 2028. Therefore, we plan to buy this stock. We are poised for sustainable double-digit growth.
Broadcom (AVGO)
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Looking for the best cybersecurity stocks to buy? broadcom (NASDAQ:AVGO) strongly worth considering. Although Broadcom is not a pure cybersecurity company, it has established itself as a leading enterprise security player through strategic acquisitions.
In 2019, Broadcom acquired Symantec's enterprise security business for $10.7 billion. As a result, Broadcom instantly became one of the world's largest cybersecurity vendors. AVGO predicted that revenue from Symantec's enterprise business in the year following the acquisition would be approximately $2.3 billion.
Most recently, in 2023, Broadcom completed its $61 billion acquisition of VMware. The latter has generated his TTM revenue of over $12 billion as of Q3 2023, which is a huge boost for Broadcom's software division.
Broadcom's latest Q1 2024 results showed total revenue, including its contribution to VMware, up 34% year-over-year to approximately $12 billion. Additionally, Broadcom expects full-year 2024 consolidated sales to be approximately $50 billion. For investors looking for cybersecurity exposure and a highly diversified, profitable technology company, AVGO checks both boxes.
Palo Alto Networks (PANW)
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palo alto networks (New York Stock Exchange:Panwoo) is the world's leading cybersecurity platform, protecting thousands of organizations around the world from cyber threats. Our best-in-class security solutions are powered by industry-leading threat intelligence and cutting-edge automation.
In its latest 2024 Q2 earnings report, PANW showed strong year-over-year growth of 19%, with total revenue expanding to $1.975 billion. The remaining performance obligations also increased by 22% to $10.8 billion. Additionally, non-GAAP EPS was a healthy $1.46. The company also maintains a strong balance sheet with cash, cash equivalents, and total investments of $6.991 billion.
Additionally, PANW continues to drive new product innovations that leverage the power of artificial intelligence (A.I.) to stay ahead of polymorphic threats aimed at accelerating and attacking network infrastructure. The company's new Precision AI-based solutions span AI attack path, AI security posture management, and AI runtime security. These enable organizations to counter advanced threats and securely scale their enterprise AI usage and integration. As such, PANW offers investors exposure to long-term tailwinds in this space, making it one of the most-bought cybersecurity stocks.
On the date of publication, Andrea van Schalkwyk did not hold (directly or indirectly) any positions in the securities mentioned. The opinions expressed in this article are those of the author and are subject to InvestorPlace.com Publishing Guidelines.
