Cybersecurity stocks emerge as incredible long-term investments in an age dominated by digital threats. Despite numerous cyberattacks over the years, many top-tier companies and government entities remain startlingly unprepared. This gap between current defenses and emerging threats carves out a substantial opportunity for growth in cybersecurity stocks.

Moreover, the cybersecurity market is on an upward trajectory and is anticipated to see robust growth in the next five years. Recent incidents, like the cyberattack on Clorox (NYSE:CLX), highlight the critical need for stronger digital defenses. This trend is a wake-up call for corporations and a beacon for investors seeking resilient growth areas.

Consequently, a substantial surge in cybersecurity investment is anticipated, with Statista forecasting the sector’s revenue to reach $273 billion by 2028. This anticipated growth highlights the increasing significance of cybersecurity stocks.

For savvy investors, focusing on the following three stocks is essential in an increasingly digitalized world.

Palo Alto Networks (PANW)

Palo Alto Networks (NASDAQ:PANW), a leader in the secure access service edge (SASE) market, stands as a beacon in the cybersecurity stocks landscape. Gartner’s high regard for its Prisma SASE solution, leading in vision and execution, signals robust growth potential, especially as cloud migration intensifies.

Beyond its renowned SASE offerings, the company presents a comprehensive security portfolio. This extensive range positions the company for additional growth as organizations streamline costs and consolidate vendors. Impressively, its first quarter non-GAAP earnings per share of $1.38 surpassed expectations by 22 cents, while a 21.8% year-over-year revenue increase to $1.9 billion indicates robust financial health.

Furthermore, a strong buy recommendation with an 8% upside potential from Tipranks analysts aligns with Simply Wall St’s projection of a 22.6% increase in earnings and a 14.5% rise in revenue annually. Notably, the anticipated 21.5% annual growth in earnings per share further cements Palo Alto Networks’ position as a prominent player in the market.

SentinelOne (S)

SentinelOne (NYSE:S) dominates the endpoint security arena, a key segment of cybersecurity stocks, by seamlessly integrating cybersecurity with artificial intelligence. Its advanced Singularity platform, powered by AI, represents the cutting-edge of digital defense. The recent introduction of the Purple AI chatbot marks a significant leap forward, enhancing vulnerability identification for security managers.

Moreover, the company reported an impressive second-quarter non-GAAP earnings per share of negative eight cents, exceeding expectations by six cents. Its revenue surged to $149.42 million, a substantial 45.8% increase year-over-year. The company’s financial strength is further exemplified by a 47% bump in annualized recurring revenue, reaching a remarkable $612.2 million as of July.

Furthermore, SentinelOne’s expanding customer base improved gross margins, and a solid cash position of $1.1 billion speak volumes about its dynamism and prospects. Additionally, TipRanks Analysts suggest a moderate buy, projecting a 6% upside potential, while Simply Wall St. forecasts annual growth of 29.5% in earnings and 21.8% in revenue.

Tenable (TENB)

Tenable (NASDAQ:TENB), a notable name in cybersecurity stocks, differentiates itself with a distinctly human-centric approach. The company emphasizes “context-driven analytics,” equipping employees with tools to counter cyberattacks proactively. This strategy not only sets Tenable apart but also resonates with a broad client base, including over 40,000 global customers, 60% of whom are Fortune 500 companies and 40% part of the Global 2000.

Financially, Tenable’s third quarter Non-GAAP earnings per share of 23 cents exceeded expectations by 5 cents, with a revenue of $201.53 million that marked a 15.3% increase year-over-year. The addition of 386 new enterprise platform customers and 58 net new six-figure customers highlights its expanding influence. Additionally, a calculated current billings growth of 8% year-over-year exemplifies Tenable’s robust market position.

Moreover, TipRanks analysts propose a strong buy rating, foreseeing a significant 28% upside potential. Simply Wall St’s analysis aligns with this optimism, projecting a 13.4% and 13.1% annual growth in earnings and revenue, respectively.

On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines