And that’s why it’s one of the best cybersecurity stocks to buy. So Qualys is well-positioned among the best cybersecurity stocks. Founded in 1999, Qualys (QLYS, $139.31) is one of the pioneering developers of SaaS for cybersecurity.

At the same time, the total number of individual victims affected decreased by 16%, reflecting a shift from mass attacks to more targeted fraud and scams. The attack volume stayed at this elevated level in 2024, though the victim count tripled year over year. The hackers are quick to adjust their tactics as the cybersecurity defenses get tougher.

Global X Cybersecurity ETF

Zacks may license the Zacks Mutual Fund rating provided herein to third parties, including but not limited to the issuer. Cisco Systems offers cybersecurity products and services that prevent unauthorized access to system resources and protect from worms, spam, viruses and other malware. The company has been integrating AI into its product portfolios across networking, security, collaboration and observability.

This automation creates higher efficiency and IT security for clients, while securing this Zacks Rank #2 company’s leadership in the critical, high-growth identity security segment. The investing information provided on this page is for educational purposes only. NerdWallet, Inc. does not offer advisory or brokerage services, nor does it recommend or advise investors to buy or sell particular stocks, securities or other investments. Yes, we work hard every day to teach day trading, swing trading, options futures, scalping, and all that fun trading stuff.

Highlights from the second quarter include an 18% revenue gain, a 59% increase in non-GAAP diluted EPS and a 16% increase in the high-value customer count from the prior-year quarter. High-value customers are those with annual contract values over $100,000. Datadog (DDOG -1.91%) is a cloud-native platform built to collect, monitor, and yield insights on cloud-based data and operations. The company uses AI to help automate the process of monitoring large and complex data sets, relieving some of the burden of busy IT teams. According to the Identity Theft Resource Center, the number of data breaches set a record in 2023, with the number of incidents jumping 71% from the previous high in 2021.

Zscaler Inc. (NASDAQ: ZS)

Tomer Weingarten cofounded SentinelOne (S, $18.01) in 2013 because he believed cybersecurity solutions were becoming obsolete. They were mostly based on the brute force of pattern matching. And it seems like a pretty good bet that demand for cybersecurity solutions will remain robust.

NerdWallet does not and cannot guarantee the accuracy or applicability of any information in regard to your individual circumstances. Examples are hypothetical, and we encourage you to seek personalized advice from qualified professionals regarding specific investment issues. Our estimates are based on past market performance, and past performance is not a guarantee of future performance. The following cybersecurity stocks have seen the best returns over the past year. This metric can be good if you believe money will continue to follow. Cybersecurity security companies’ stocks will focus mainly on the hardware and software side of this process to ensure the safety of private users, a company’s, or even governmental data.

The table below shows the list of stocks, sorted by market capitalisation. You can change the sorting order by clicking on the respective column header. To address growing demand for AI-native capabilities and concerns around observability costs, Datadog has introduced several new offerings, including LLM Observability and Flex Logs. These initiatives mark the company’s effort to stay competitive in an evolving observability landscape.

• A World Economic Forum analysis cites several factors that are creating more complexity.
• The company’s continued innovation in AI, automation and cloud security reinforces its competitive lead.
• This stock is so off-the-radar, so absurdly undervalued, that some of the most secretive hedge fund managers in the world have begun pitching it at closed-door investment summits.
• Each ChatGPT query, each model update, each robotic breakthrough consumes massive amounts of energy.
• Its business involves anything connected to a network, such as laptops, computers, and smartphones.

In an increasingly mobile world with more devices continually coming online, CrowdStrike is poised to continue growing at a brisk rate. Cybersecurity spending has soared since the COVID-19 pandemic. Organizations have faced new security challenges as cloud computing and remote work have become essential and widely used. As a result, many cybersecurity stocks were top performers in 2020 and 2021, boosted by strong demand for next-gen security software. SailPoint provides cloud-based identity security and access management software for enterprises.

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Booz Allen Hamilton Holding Corp. is another technology and management consulting company similar to CACI. The company provides the highest level of analytics, digital, engineering, and cyber solutions, among other services. It serves customers that include the US Government and multinational corporations worldwide. We’ve broken our list of cybersecurity stocks into Growth, Value, and Momentum stocks; stocks overlap in more than one category.

MarketBeat Products

Cisco is also the only stock on this list that offers its shareholders a dividend (2.94% annual dividend yield). Thus, Cisco is a good candidate if you are looking for a company that is invested in cybersecurity and other tech sectors. Almost every quarterly earnings report saw steady growth in revenue and profits. Furthermore, the company has had a positive cash flow since 2009. However, Fortinet announced lower-than-expected revenue for the next quarter early in August due to weak IT spending.

There are 322 technology stocks in this fund, and its AUM is over $62B. However, almost 45% of the fund is invested in Apple and Microsoft. Their weight heavily dictates the price direction of the fund. Consequently, Fortune Business estimates that the cybersecurity market will grow to $218 billion by 2025, up from $193 billion in 2024. It’s also expected to reach $562 billion by 2032, growing at a compound annual growth rate of 14.4%.

The following cybersecurity stocks have the lowest one-year trailing P/E (price to earnings) ratio. This metric is valuable because profits can be used as dividends or stock buybacks. With a low P/E ratio, the profit generated is greater for each dollar spent on the stock price. The dynamic changes present unique opportunities to identify undervalued stocks in the cybersecurity sector with tremendous long-term prospects. Therefore, we have compiled a list of companies that are innovating in AI threat detection, ransomware response, and risk management. The company capitalized by building pioneering firewall systems for network security.

The new centers bring the company’s total number of cloud security centers worldwide to 50, having already opened centers in India, Kenya, and Peru early in the year. With its expansion cyber security stocks drive, it has enhanced its attack mitigation capacity to over 15 terabytes per second. Tenable has entered other categories like cloud-native application protection platform (CNAPP) solutions and cloud infrastructure entitlement management (CIEM).

• ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
• To bolster its network security offerings and protect its customers from ransomware attacks, Akamai acquired several smaller security specialists from 2022 to 2024.
• Our estimates are based on past market performance, and past performance is not a guarantee of future performance.
• The premium-priced stock was hit hard in 2022, and its security network suffered a painful outage in July 2024.
• It’s delivering real cash flows, owns critical infrastructure, and holds stakes in other major growth stories.
• CACI International is not just a cybersecurity play but a world-class information technology products, solutions, and services company.

Akamai Technologies (AKAM)

Executive leaders recently identified cyber and technology risk as primary threats to business growth, according to a survey from insurer Chubb. More than 40% of executive respondents noted that cyber threat monitoring is an essential function within their organization. Also notable in this sector is the Amplify Cybersecurity ETF (HACK -0.25%).