Cybersecurity has become an essential resource for many small businesses and corporations. Cyberattacks can get expensive and ruin a company’s reputation. It’s even possible for hackers to disrupt online events, steal money and delete a company’s digital assets. Cybersecurity firms protect businesses from those scenarios, but investors can choose from several corporations. Not every cybersecurity business will do well, and some will naturally perform better than others. Wall Street analysts are currently feeling bullish on the favorite cybersecurity stocks that can help your portfolio reach new highs.
Crowdstrike (CRWD)
Crowdstrike (NASDAQ:CRWD) is one of the few cybersecurity leaders still quickly growing in revenue and earnings. The company reported 33% year-over-year revenue growth and $53.7 million in net income in the fourth quarter of fiscal 2024. Crowdstrike’s net profit margin has expanded significantly in recent quarters, reaching 6.35% in Q4 FY24. Other firms have slowed down due to headwinds.
Annual recurring revenue reached $3.44 billion, up 34% year-over-year. Full-year revenue came to $3.06 billion, and the company expects to generate $3.96 billion in fiscal 2025. That’s a 29.4% year-over-year increase at the midpoint. Crowdstrike can realistically exceed the midpoint and deliver another year of 30%+ year-over-year revenue growth.
The stock is up 142% over the past year and gained 400% over the past five years. Wall Street analysts are bullish on the stock despite its impressive historical gains. The average price target from 41 analysts suggests Crowdstrike can still increase 23% from current levels.
Microsoft (MSFT)
Microsoft (NASDAQ:MSFT) is the world’s most valuable company due to its ability to dominate multiple industries seamlessly. Cloud computing, artificial intelligence, business software and cybersecurity are some of the company’s strong points.
The tech giant regularly collaborates with policymakers to address cybersecurity challenges and launches a new product to strengthen its cybersecurity segment. The company uses Copilot to offer more cybersecurity capabilities for individuals and businesses. Its AI-powered cybersecurity assistant can help people stay safe and monitor threats before entering the system.
Some analysts are bullish on the cybersecurity business, but almost everyone seems bullish on Microsoft stock as a whole. It’s rated as a “Strong Buy” among 33 analysts and has an average price target that suggests a 12% upside. Shares are up by 55% over the past year and have gained a stunning 260% over the past five years. The stock certainly lives up to the “Magnificent” moniker.
Qualys (QLYS)
Qualys (NASDAQ:QLYS) is a “growth at a reasonable price” cybersecurity stock that has grown by 31% over the past year. Shares have almost doubled over the past five years and trade at a 40 P/E ratio.
The company’s recently announced TotalCloud 2.0 allows customers to strengthen their defenses in cloud and SaaS applications. The software also enables “improved collaboration among security, IT and development teams,” making it easier to protect business-critical applications. Qualys’ TruRisk Platform also became available in the Oracle (NYSE:ORCL) Cloud Marketplace, increasing the company’s customer base.
New projects and inclusion into the Oracle Cloud Marketplace aren’t the only catalysts driving Qualys shares higher. The firm continues to report solid revenue and earnings growth. Q4 2023 revenue increased 10% year-over-year while net income surged 43% year-over-year.
Most analysts have rated the stock as a “Hold” and project some additional upside. The highest price target of $220 per share suggests the stock can gain an additional 35% from current levels.
On this date of publication, Marc Guberti held a long position in MSFT. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
