Many businesses have shifted their operations online to increase revenue and productivity. While the digital landscape has created many opportunities, it has also created more vulnerabilities. Still, this has led to this list of cybersecurity stocks to buy.

As companies branch out online, they create more backdoors for hackers. Each authorized member who enters a system is a liability. Hackers can infiltrate databases and access sensitive information by deceiving employees, using malicious software, or through other methods.

Cybersecurity companies aim to keep business owners and customers safe from these types of attacks. As hackers get more sophisticated, the need for cybersecurity solutions becomes more apparent for many companies. Investors hoping to support the industry and generate profits can benefit from these top cybersecurity stocks.

CrowdStrike (CRWD)

CrowdStrike (NASDAQ:CRWD) has been making the cloud safer since 2011. The company’s CrowdStrike Falcon platform can put a stop to breaches before they get out of control. CrowdStrike simplifies cybersecurity instead of having businesses rely on ineffective antivirus products.

The cybersecurity firm recently began offering its services on Amazon (NASDAQ:AMZN) Business. This initiative will help the firm attract more small and medium-sized businesses. CrowdStrike is closing the gap so smaller companies can receive the same level of protection as larger corporations.

CrowdStrike’s efforts have paid off for investors. The company recently became profitable and continues to report excellent revenue growth. In the second quarter of Fiscal 2024, revenue jumped by 37% year-over-year. A good portion of that revenue is recurring. This makes it one of those cybersecurity stocks to buy.

CrowdStrike stock is up by 103% year-to-date and has gained 227% over the past five years. The company has a $50 billion market cap. CrowdStrike’s artificial intelligence solutions can fuel further gains. 

Palo Alto Networks (PANW)

Palo Alto Networks (NASDAQ:PANW) offers next-gen cybersecurity solutions to thousands of customers. Statements made in the press release for Q1 FY 2024 earnings indicate the demand is growing.

“An unprecedented level of attacks is fueling strong demand in the cybersecurity market,” said Nikesh Arora, chairman and CEO of Palo Alto Networks. As cyberattacks become more common and a few high-profile attacks spread across the news, Palo Alto Networks will continue to grow its customer base.

The company’s revenue grew by 20% year-over-year to $1.9 billion. Remaining performance obligations (RPO) grew even faster at 26% year-over-year to reach $10.4 billion. It’s a good sign for future quarters when RPO outpaces revenue growth.

Businesses are flocking over to Palo Alto Networks, and so are investors. Shares are up by 90% year-to-date and have gained 356% over the past five years. Substantial profit margin improvements have helped the company exceed 10% net margins. Shares currently trade at a 50 forward P/E ratio.

Qualys (QLYS)

Qualys (NASDAQ:QLYS) is an under-the-radar cybersecurity stock that only has a $6.5 billion market cap. The stock has attracted more attention with a 60% year-to-date jump. That improvement brings the stock’s 5-year gains to 127%.

The company offers cloud security subscriptions to over 10,000 customers worldwide, including 70% of the Forbes Global 50. The presence of many blue-chip customers makes Qualys’ financials more stable than those of most businesses. 

Just like CrowdStrike, Qualys is also offering more cybersecurity solutions to small and medium-sized businesses. The company recently announced it is offering TruRisk, FixIT, and ProtectIT Packages in the AWS marketplace. The initiative will help companies access the security expertise they need even if they do not have enterprise-level budgets.

Qualys reported 13% year-over-year revenue growth in the third quarter and raised its 2023 EPS guidance. Net income surged by 68% year-over-year and helped the company secure a 32.8% profit margin for the quarter. Although other cybersecurity companies have faster top-line growth, few of them stack up against Qualys’ profit margins.

Fortinet (FTNT)

Fortinet (NASDAQ:FTNT) hasn’t had the best year. Shares have fallen by over 30% from their July highs but remain up by 9% year-to-date. It’s a disappointing performance for a stock that has gained 259% over the past five years, but new investors have a good buying opportunity.

The primary concern with Fortinet is its slowing growth. Revenue only went up by 16.1% year-over-year in the third quarter. Billings only crawled up by 5.7% year-over-year. Long-term investors are used to seeing 25%-35% year-over-year growth for each of those numbers.

The main culprit for reduced sales is product revenue which decreased by 0.6% year-over-year. The company’s larger service revenue segment still grew at an impressive 27.6% year-over-year. All in all, it’s one of those cybersecurity stocks to consider.

The drop in product revenue was sudden and is a result of macroeconomic headwinds. Fortinet still grew its net income by 39% year-over-year and frequently ends up with quarterly profit margins above 20%. 

Fortinet is still a cybersecurity leader and has healthy financials. Once the headwinds ease, Fortinet stock should return to its outpaced gains. Leadership believes billings growth will approach or exceed double-digit growth by the second half of 2024.

Cloudflare (NET)

Cloudflare (NYSE:NET) offers cloud and content delivery network services. The company powers many websites and enhances its cybersecurity. Over 30% of the Fortune 1,000 businesses are paying customers. 

Once businesses become customers, they tend to stick around for many years. The company has over 182,000 customers so far. From 2021 to 2023, Cloudflare has a 42% compounded annual growth rate among large customers with over $100,000 in annualized revenue.

Cloudflare continues to report good financials. In the third quarter, Cloudflare grew its revenue by 32% year-over-year. The content delivery network is still unprofitable but is making great progress. The company trimmed its net losses by 44.7% year-over-year.

Cloudflare is still more than 60% down from the all-time high it set in November 2021. If the company continues to trim its losses while expanding revenue, the company can approach those highs within a few years. Many businesses rely on Cloudflare, and the company’s high compounded annual growth rate suggests it can continue to reward investors.

Akamai Technologies (AKAM)

Akamai Technologies (NASDAQ:AKAM) is a slower-moving cybersecurity stock that has a more reasonable valuation. The company is up by 33% year-to-date and has gained 65% over the past five years. AKAM has a 31 P/E ratio which is lower than most companies in the industry. 

Akamai Technologies powers many websites and keeps people’s information safe. Over 100,000 customers currently use Akamai for their content delivery and cybersecurity. 

That large customer base helped Akamai Technologies achieve 9% year-over-year revenue growth in the third quarter—Akamai Technologies’ largest segment — security revenue — experienced 20% year-over-year revenue growth. Security revenue makes up almost half of the company’s total revenue.

Delivery revenue was slightly down year-over-year while compute revenue increased by 19% year-over-year. As the faster-growing business segments become larger components of Akamai Technologies’ business model, the company can experience higher revenue growth. Net income increased by 29.8% year-over-year.

Akamai Technologies raised its guidance for full-year revenue and non-GAAP diluted EPS. This raise gives investors a reason to feel excited about the company’s long-term potential.

Zscaler (ZS)

Zscaler (NASDAQ:ZS) is one of the fastest-growing cybersecurity stocks. At a time when many companies are slowing down, Zscaler continues to shine. The company reported 43% year-over-year revenue growth in the fourth quarter of fiscal 2023. Calculated billings and deferred revenue grew by 38% and 41% year-over-year respectively.

Zscaler still operates at a net loss. The GAAP loss reached $44.6 million in the fourth quarter which is much less than last year’s $82.5 million net loss. Investors who can hold on for a few years may want to consider this stock. Impressive top-line growth and narrowing losses can make this stock enticing when the company becomes profitable. 

Zscaler provides cybersecurity solutions and recently launched two new services: Zscaler Risk360 and Zero Trust Branch Connectivity. These services and the other resources Zscaler provides can better identify and address large-scale attacks before they become problematic for companies. This makes it one of those cybersecurity stocks to buy.

Zscaler aims to generate $472-$474 million in the first quarter of fiscal 2024. In the same time last year, Zscaler reported $355.6 million in revenue. The guidance represents 33.0% year-over-year revenue growth at the midpoint.

On this date of publication, Marc Guberti held a long position in FTNT. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.