Cybersecurity has become an essential resource for many small businesses and enterprises. Cyberattacks can be costly and damage a company's reputation. Hackers can disrupt online events, steal money, and even delete a company's digital assets. Cybersecurity companies protect companies from these scenarios, but investors can choose from multiple companies. Not all cybersecurity businesses do well, and of course some perform better than others. Wall Street analysts are currently bullish on popular cybersecurity stocks that can help portfolios reach new highs.
Crowd Strike (CRWD)
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cloud strike (NASDAQ:CRWD) is one of the few cybersecurity leaders still growing revenue and profits rapidly. The company reported a 33% year-over-year increase in revenue for the fourth quarter of fiscal 2024, with net income of $53.7 million. CrowdStrike's net margin expanded significantly in recent quarters, reaching 6.35% in Q4 FY24. Some companies have seen their performance slow due to headwinds.
Annual recurring revenue increased 34% year over year to $3.44 billion. Full-year sales were $3.06 billion, with sales expected to reach $3.96 billion in fiscal 2025. This is an increase of 29.4% year over year at the midpoint. CrowdStrike could realistically cross the halfway point and achieve more than 30% year-over-year revenue growth in another year.
The stock is up 142% in the past year and 400% in the past five years. Wall Street analysts are bullish on the stock despite its historically impressive gains. The average price target from 41 analysts suggests that CrowdStrike could rise an additional 23% from current levels.
Microsoft (MSFT)
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microsoft (NASDAQ:MSFT) is the world's most valuable company due to its ability to seamlessly dominate multiple industries. Cloud computing, artificial intelligence, business software, and cybersecurity are some of the company's strengths.
Tech giants regularly collaborate with policymakers to address cybersecurity challenges and launch new products to strengthen the cybersecurity sector. The company uses his Copilot to provide even more cybersecurity capabilities to individuals and businesses. AI-powered cybersecurity assistants can help keep people safe and monitor threats before they get into your systems.
While some analysts are bullish on the cybersecurity business, almost all seem bullish on Microsoft stock as a whole. 33 analysts rate it a “strong buy,” with an average price target suggesting an upside of 12%. In the past year, the stock price has increased by 55%, and in the past five years it has increased by a whopping 260%. This strain certainly lives up to its “epic” name.
QLYS
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Qualis (NASDAQ:QLYS) is an “affordable growth” cybersecurity stock that has grown 31% over the past year. The stock has nearly doubled in the past five years, giving it a P/E ratio of 40.
The company's recently announced TotalCloud 2.0 allows customers to better protect their cloud and SaaS applications. The software also enables “improved collaboration between security, IT, and development teams,” making it easier to protect business-critical applications. Qualys' TruRisk platform also oracle (New York Stock Exchange:ORCL) Cloud Marketplace, expand your company's customer base.
New projects and Oracle Cloud Marketplace participation aren't the only factors driving Qualys stock's rise. The company continues to report solid revenue and profit growth. Fourth quarter 2023 revenue increased 10% year over year and net income increased 43% year over year.
Most analysts rate the stock as a “hold” and expect further upside. The highest price target of $220 per share suggests the stock could rise an additional 35% from current levels.
On the date of publication, Marc Guberti held a long position in MSFT. The opinions expressed in this article are those of the writer and are influenced by InvestorPlace.com. Publishing guidelines.
