4 Cybersecurity Stocks to Buy for Stronger Portfolio Security

Cybersecurity encompasses comprehensive security measures designed to protect systems, networks, and programs from digital attacks. These attacks often aim to access, alter, or destroy sensitive information, extort money from users through ransomware, or disrupt the integrity of normal business operations.

The widespread adoption of artificial intelligence (AI), Internet-of-Things (IoT) devices, and increased digitization across both public and private sectors has heightened vulnerabilities and expanded attack surfaces, necessitating the development of advanced security solutions.

Here we recommend four stocks from the cybersecurity space with strong potential to provide double-digit returns in the short-term. These are CrowdStrike Holdings Inc. CRWD, CyberArk Software Ltd. CYBR, Palantir Technologies Inc. PLTR and Fortinet Inc. FTNT.

The cybersecurity market has excellent growth opportunities for the future. Companies in this space offer integrated protection against evolving security threats while simplifying IT security infrastructure. The demand for advanced security solutions is rising owing to the increasing incidence of cyberattacks.

Cybersecurity companies provide solutions to safeguard applications, networks, and cloud computing environments. Their offerings include application-specific integrated circuits, hardware architecture, operating systems, and associated security and networking functions, ensuring robust defenses against cyberattacks.

At present, the global cybersecurity market size is around $190 – $210 billion. Several market researchers have estimated that this market size will likely reach $300 – $375 billion during 2028-2030.

These stocks have strong growth potential in 2025 and have seen positive earnings estimate revisions in the last 60 days. Each of our picks currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The chart below shows the price performance of our four picks year to date.

Image Source: Zacks Investment Research

CrowdStrike Holdings, a leading provider of cybersecurity solutions in the United States and internationally, has been benefiting from the rising demand for cybersecurity solutions and the increasing need for secure networking products amid the growing hybrid working trend.

Continued digital transformation and cloud migration strategies adopted by organizations are the key growth drivers. CRWD’s portfolio strength, mainly the Falcon platform’s 22 cloud modules, boosts its competitive edge and helps add users.

CrowdStrike’s success is rooted in continuous innovation, particularly in the wake of the July 2024 incident, which prompted the company to enhance its Falcon platform with advanced automated recovery techniques. These updates bolstered visibility, quality assurance and overall security, reassuring customers and strengthening trust in its solutions.

The Falcon platform now boasts more than 28 modules, spanning endpoint security, identity protection and next-gen SIEM, allowing CRWD to diversify its revenue streams. CRWD’s ability to anticipate and respond to cybersecurity threats makes it a key partner for enterprises navigating an increasingly complex digital landscape.

A significant driver of CRWD’s customer retention is the Falcon Flex subscription model, which simplifies security adoption by offering modular, scalable cybersecurity solutions. This flexibility encourages long-term commitments, ensuring steady revenue growth and deep customer integration.

CrowdStrike Holdings has an expected revenue and earnings growth rate of 20.2% and 16.6%, respectively, for the current year (ending January 2026). The Zacks Consensus Estimate for current-year earnings has improved 2.1% in the last 60 days. It has a long-term (3-5 years) earnings growth rate of 34.5% compared with 12.3% for the S&P 500.

CyberArk Software is benefiting from the rising demand for cybersecurity and privileged access security solutions due to the long list of data breaches and increasing digital transformation strategies.

A strong presence across verticals, such as banking, healthcare, government and utilities, is safeguarding CYBR from the adverse effects of softening IT spending. CYBR’s strategic mix shift toward software-as-a-service and subscription-based solutions is driving top-line growth.

CyberArk is gaining customer accounts, which contributes to its revenues. The vast customer base presents the company with an opportunity to upsell products within its installed user base. Furthermore, in the last few quarters, CYBR has been able to close a significant number of seven-figure deals.

The growing number of large deals in the revenue mix is a positive as it increases deferred revenues and visibility. Moreover, any product refresh brings in additional dollars as every enterprise attempts to keep its threat management infrastructure updated. These factors in turn support CYBR’s top line.

CyberArk Software has an expected revenue and earnings growth rate of 31.5% and 18.2%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.3% in the last 30 days. It has a long-term (3-5 years) earnings growth rate of 20% compared with 12.3% for the S&P 500.

Palantir Technologies, the artificial intelligence (AI)-powered software platform and data analytics firm, reported robust earnings results for fourth-quarter 2024. Both the top and bottom lines exceeded the Zacks Consensus Estimate. Moreover, PLTR issued solid guidance for first-quarter and full-year 2025 revenues and earnings.

Palantir Technologies’ commercial business has gathered pace besides its traditional government contracts. This is primarily due to PLTR’s aggressive venture in the AI space. In 2023, PLTR launched its Artificial Intelligence Platform (“AIP”), an AI-powered system that helps customers quickly concentrate and analyze data and discover how it can help advance their business goals.

AIP provides unified access to open-source, self-hosted, and commercial large language models that can transform structured and unstructured data into LLM-understandable objects and turn organizations’ actions and processes into tools for humans and LLM-driven agents. This shift in revenue structure has enabled the company to no longer depend on government defense agencies.

Palantir Technologies has an expected revenue and earnings growth rate of 31.4% and 31.7%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 12.5% in the last 30 days. It has a long-term (3-5 years) earnings growth rate of 31.4% compared with 12.3% for the S&P 500.

Fortinet’s fourth-quarter 2024 results reflect strength in demand from large enterprise customers and growth in the company’s security subscriptions amid a slowdown in networking products, along with challenges in sales execution and marketing efficiency.

Moreover, the growing adoption of Software-Defined Wide Area Network (SD-WAN) solutions could be a key growth driver for Fortinet in the long-run. The market research firm, MarketsAndMarkets, predicts that the market size for SD-WAN solutions could reach $13.7 billion by 2027 from $3.4 billion in 2022, indicating a CAGR of 31.9%.

Continued deal wins, especially those of high value, are a key driver for FTNT. Higher IT spending on cybersecurity is further expected to aid FTNT in growing faster than the security market. The focus on enhancing FTNT’s unified threat management portfolio through product development and acquisitions is a tailwind.

Fortinet has an expected revenue and earnings growth rate of 13.5% and 2.5%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 2.1% in the last 30 days. It has a long-term (3-5 years) earnings growth rate of 13% compared with 12.3% for the S&P 500.

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