While advanced technologies will always be celebrated, the reality is that with innovation comes nefarious activity. It’s just the way of the world. With that, cybersecurity stocks present an excellent opportunity. In many ways, they benefit from a permanently relevant narrative.
According to Grand View Research, the global cybersecurity market size reached a valuation of $222.66 billion. By 2030, the sector could be worth $500.7 billion, implying a compound annual growth rate (CAGR) of 12.3% from 2023. More than likely, this is a conservative figure.
With the advent of artificial intelligence, the learning curve for developing codes (for both productive and not-so-productive initiatives) has diminished considerably. Therefore, as McKinsey & Company pointed out, the cybersecurity space may present a $2 trillion opportunity.
Whatever the actual number comes out to be, this is a burgeoning space. On that note, below are compelling cybersecurity stocks to consider.
Fortinet (FTNT)
Based in Sunnyvale, California, Fortinet (NASDAQ:FTNT) makes a strong case for cybersecurity stocks thanks primarily to its underlying business. Per its public profile, Fortinet offers secure networking solutions that are focused on the convergence of networking and security. It also provides firewall solutions for data centers, which will likely be in high demand. After all, data centers keep sprouting all over the globe.
Financially, one of the attributes that makes FTNT one of the cybersecurity stocks to buy is high-level consistency. Between the second quarter of 2023 to Q1 2024, the company’s average earnings per share reached 43.3 cents. This performance translated to an average earnings surprise per quarter of 14.38%.
During the trailing 12 months (TTM), Fortinet’s net income landed at $1.2 billion or EPS of $1.54. Revenue in this cycle hit $5.4 billion. For fiscal 2024, covering experts believe EPS may rise 8.6% to hit $1.77. On the top line, sales might reach $5.8 billion, up 9.3% from the prior year’s tally of $5.3 billion.
A10 Networks (ATEN)
Headquartered in San Jose, California, A10 Networks (NYSE:ATEN) provides networking solutions in the Americas, Japan, Asia Pacific, Europe, the Middle East and Africa. Primarily, the company is known for its Thunder Application Delivery Controller. This innovation provides advanced server load-balancing solutions. It also provides a Thunder Convergent Firewall, which addresses multiple security capacities under one roof.
With cyberattacks rising in both scope and scale, A10 will likely see accelerating relevance. In terms of financial performances, it incurred a small blemish in Q4 2023. That was when it missed the EPS target of 26 cents by a penny. Still, the overall earnings surprise over the past four quarters since Q1 2024 came out to 8.9%.
During the TTM period, net income landed at $45.74 million or EPS of 61 cents. For fiscal 2024, analysts anticipate a 4% expansion of the bottom line to reach earnings of 76 cents per share. Revenue may rise 4.7% to hit $263.5 million. For fiscal 2025, sales may jump again by 8.6% to hit $286.14 million. Thanks to its projected growth, it’s one of the cybersecurity stocks to buy.
SentinelOne (S)
Calling Mountain View, California home, SentinelOne (NYSE:S) operates as a cybersecurity provider in the U.S. and for international markets. Per its corporate profile, the company offers the Singularity Platform, which delivers AI-powered autonomous threat prevention, detection and response capabilities. These solutions are offered for organizational endpoints and cloud workloads. They also support the identification of credentials.
With nefarious actors constantly looking for vulnerabilities to exploit, enterprises desperately need end-to-end protection. That’s where SentinelOne’s AI protocol can help change the game. To be sure, the company isn’t profitable at the moment. However, its performances have mitigated expected losses per share. Notably, its average quarterly surprise stands at nearly 64%.
During the TTM period, SentinelOne incurred a net loss of $301.93 million, translating to a loss of $1.01 per share. Revenue reached $674.12 million. For the current fiscal year (2025), experts anticipate EPS of 4 cents, a far cry from last year’s loss of 28 cents per share. Revenue may jump to $813.36 million, up 30.9% from fiscal 2024’s haul of $621.15 million.
It’s super risky but it could be one of the compelling cybersecurity stocks to buy.
On the date of publication, Josh Enomoto 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.
