It’s no secret that companies are ramping up security spending to combat rising threats. The cybersecurity market is projected to reach $183 billion globally this year, presenting major growth opportunities in cybersecurity stocks. With attacks growing more frequent and costly, businesses simply cannot afford to skimp on protection.
Savvy investors can position themselves to benefit by adding exposure to leading cybersecurity stocks. Their innovative portfolios span key growth areas like cloud security, critical infrastructure protection and AI-powered threat prevention.
Thus, for investors seeking tech exposure plus defensive qualities, the following cybersecurity stocks present an appealing option.
Fortinet (FTNT)
Fortinet (NASDAQ:FTNT) is one of the strongest cybersecurity stocks to buy right now. Its leading position in the $144 billion cybersecurity market along with a clear vision for growth makes FTNT a clear pick.
Supporting FTNT is easy due to its impressive first-quarter 2024 financial results. Total revenue grew 7% year-over-year (YOY) to $1.35 billion, service revenue jumped an impressive 24%, and gross profit margins held strong at 75.5%. It owns a dominant 50% global market share in network security shipments. And, its industry-leading product innovation has over 900 U.S. patents.
Additionally, Fortinet is highly validated by industry analysts, winning leadership positions across eight Gartner Magic Quadrants. The Fortinet Security Fabric platform drives automated protection, detection and response for enterprises through AI-powered integration. Over 755,000 global customers already depend on Fortinet for security, including nearly three-quarters of the Fortune 100.
Also, the company was named Google Cloud’s Technology Partner of the Year for Security in 2024. Fortinet’s broad portfolio of integrated cybersecurity products positions them perfectly to capture share in the $222 billion total addressable market projected in 2028. Therefore, plan to buy this stock as it is poised for sustainable double-digit growth.
Broadcom (AVGO)
When looking for the best cybersecurity stocks to buy, Broadcom (NASDAQ:AVGO) deserves strong consideration. While not a pure-play cybersecurity company, Broadcom has established itself as a major player in enterprise security through strategic acquisitions.
In 2019, Broadcom acquired Symantec’s enterprise security business for $10.7 billion. As a result, Broadcom instantly became one of the largest cybersecurity vendors globally. AVGO predicted around $2.3 billion in revenue from Symantec’s enterprise business in the year after the acquisition.
More recently in 2023, Broadcom completed its $61 billion acquisition of VMware. The latter generated over $12 billion in TTM revenue as of Q3 of 2023, so this is a massive boost to Broadcom’s software segment.
In Broadcom’s latest earnings for Q1 of 2024, total revenue including VMware contributions jumped 34% YOY to almost $12 billion. Additionally, Broadcom expects about $50 billion in total consolidated revenue for full fiscal year 2024. For investors wanting cybersecurity exposure plus a highly diversified, profitable tech company, AVGO checks both boxes.
Palo Alto Networks (PANW)
Palo Alto Networks (NYSE:PANW) is the world’s leading cybersecurity platform, protecting thousands of organizations globally from cyberthreats. Its best-in-class security solutions are strengthened by industry-leading threat intelligence and state-of-the-art automation.
In the most recent Q2 of 2024 earnings report, PANW showed strong growth with 19% YOY and total revenue expansion to $1.975 billion. Remaining performance obligations also rose an impressive 22% to $10.8 billion. Furthermore, non-GAAP EPS came in at a healthy $1.46. The company maintains a fortress balance sheet as well, with $6.991 billion in total cash, cash equivalents and investments.
Additionally, PANW continues to push new product innovations that leverage the power of artificial intelligence (AI) to stay ahead of polymorphic threats aimed to accelerate and attack network infrastructure. Its new Precision AI-based solutions spans AI Attack Path, AI Security Posture Management and AI Runtime Security. These enable organizations to counter advanced threats and safely scale their own enterprise AI usage and integrations. Therefore, PANW offers investors exposure to secular tailwinds in the field, making it one of the top cybersecurity stocks to buy.
On the date of publication, Andrea van Schalkwyk did not hold (either directly or indirectly) any positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
