The 3 Best Cybersecurity Stocks to Invest In for Big Gains in 2024


  • These cybersecurity stocks for 2024 can rally higher.
  • Cloudflare (NET): The company has a vast customer pool and continues to grow revenue.
  • Qualys (QLYS): The cybersecurity stock has been overlooked and is starting to hit its stride.
  • Gen Digital (GEN): This stock has a lower valuation than most cybersecurity companies and even gives out a dividend.
cybersecurity stocks 2024 - The 3 Best Cybersecurity Stocks to Invest In for Big Gains in 2024

The internet makes things more convenient. We can easily consume information, buy products, and connect with friends from anywhere. While convenience has brought forth many innovative companies, it has also increased our vulnerability.

Cyber hackers capitalize on global connectedness by infiltrating databases and accessing sensitive information. Username and password combinations can help hackers access sensitive accounts and damage a company’s reputation. 

A lot can go wrong when businesses become victims of cyberattacks. However, many cybersecurity firms are offering safeguards for consumers and businesses. These are some of the cybersecurity stocks leading the charge.

Cloudflare (NET)

The logo of Cloudflare, (NET) an US web infrastructure & security company, its website on iOS.
Source: Koshiro K /

Cloudflare (NYSE:NET) is a global cloud services provider that helps various businesses increase their security. Cloudflare works with corporations and small businesses, which gives them a larger customer pool than firms that focus on corporations.

The large addressable market has contributed to the firm reaching 182,000 paying customers. Over half of the company’s revenue is concentrated among its large customers.

Cloudflare hasn’t had many issues with revenue growth. The company reported an impressive 32% year-over-year revenue growth rate in the third quarter of 2023. That’s slightly higher than last quarter’s revenue growth rate. Cloudflare also cut its GAAP net losses by almost half year-over-year. The firm had a $23.5 million GAAP net loss relative to $335.6 million in revenue.

Investors have bid the stock up tremendously while waiting for the company to report a profit. Shares are up by 51% over the past year and have gained 346% over the past five years. A significant run-up during the pandemic and a crash in 2022 leaves share more than 60% removed from the all-time high.

Qualys (QLYS)

A Qualys sign hanging on a corporate office in Silicon Valley.
Source: Michael Vi /

Qualys (NASDAQ:QLYS) was an overlooked cybersecurity stock for several years before hitting its stride in 2023. The stock has surged by 65% over the past year and is up by 113% over the past five years. Shares currently trade at a forward P/E ratio of 38.

Qualys maintains double-digit year-over-year revenue growth and has seen its profit margins expand significantly. The company continued this trend with 13% year-over-year revenue growth and 68% year-over-year net income growth in Q3 2023.

Qualys offers cloud-based security and compliance solutions to over 10,000 customers. The firm’s customer pool includes 70% of the Forbes Global 50. Qualys simplifies online security by consolidating all tools and resources into a single dashboard. 

Once businesses use Qualys or most cybersecurity firms, they continue to pay via subscriptions. Using the same platform is more convenient than switching to another solution. That helps Qualys consistently achieve top-line growth and expand profit margins.

Gen Digital (GEN)

a business man pressing a button with an open lock on it that's connected to a symbol of a cloud and various security related icons. cheap cybersecurity stocks
Source: Shutterstock

Gen Digital (NASDAQ:GEN) offers growth at a reasonable price for investors. The company trades at a 10 P/E ratio and offers a 2.10% dividend yield. However, the company’s stock price hasn’t budged much. Shares are only up by 4% over the past year.

Gen Digital is the parent company formed due to Norton LifeLock’s acquisition of Avast. These two entities helped Gen Digital achieve 27% year-over-year revenue growth in the second quarter of fiscal 2024

Gen Digital now has 38.5 million direct customers across its cybersecurity solutions. The firm also improved its annual revenue per user to generate more profits.

The company’s customer base grew by 380,000 quarter-over-quarter. That growth rate increases Gen Digital’s total customers to 38.5 million people and businesses. Bookings increased by 28% year-over-year, which suggests Gen Digital’s growth is sustainable.

Gen Digital isn’t likely to soar with other high-growth cybersecurity stocks. However, it offers dividend payments and a more reasonable valuation.

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

Marc Guberti is a finance freelance writer at who hosts the Breakthrough Success Podcast. He has contributed to several publications, including the U.S. News & World Report, Benzinga, and Joy Wallet.

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