Until recently, CrowdStrike (NASDAQ:CRWD) was one of the most successful cybersecurity stocks in the world. The stock was rising to new heights due to the success of its Falcon endpoint security solution. It also saw growing interest from investors, pushing the valuation to new highs. 

However, that all began to change after it bungled a software update for its Microsoft (NASDAQ:MSFT)-based system. Millions of computers worldwide were frozen, stopping the global economy for a few hours. 

The stock has continued to sink by double digits following the disastrous update. In fact, it has dipped over 30% in the past month, and the trend appears to be holding. As more details of the failed update emerge, it hurts CrowdStrike’s image further. Delta Air Lines (NYSE:DAL) just announced it was suing CrowdStrike over the debacle.

This means CrowdStrike could see decreased business and a drop in future revenue. The result could be a major decline as it reports its quarterly results post-outage. However, the CrowdStrike outage is also an opportunity to make some profits. 

These three stocks below show great promise. Investors could pick these stocks up amid the CrowdStrike outage. They offer similar solutions to CrowdStrike, and anyone dissatisfied after the global outage could opt to use their services. As their financial results improve following the outage, investors could see the value of their holdings rise drastically.

Fortinet (FTNT)

Fortinet (NASDAQ:FTNT) is a cybersecurity company with a 4.9% share of the networking hardware industry. It is also a dominant player in the firewall market, holding a 21% share.

Following the CrowdSrike outage, Fortinet could become a major player in the cybersecurity industry. One of the solutions that could propel it to the next level is FortiGuard and FortiEDR. Its solutions combine a hybrid approach that entails cloud solutions and on-premise solutions. 

Fortinet solutions may have been less popular because they are more complex and require more user engagement. However, following the CrowdStrike outage, more cybersecurity managers will be willing to overcome the complexity for guaranteed security. 

Following lowered guidance in August 2023, FTNT stock fell 25%. In the past six months, it has dipped 14.22% while it is down 1.35% year to date. 

Following the CrowdStrike outage, analysts are more optimistic about the future of FTNT stock. They forecast an average price of $70.38, a 22.81% upside. The most optimistic analysts predict the stock will rise 51.81% to $87 per share. 

While Fortinet may have previously found it hard to attract new customers due to the cost and complexity of its products, that could soon change. The learning curve will not seem as steep for IT managers seeking to avoid a fate similar to the recent Crowdstrike outage. 

Palo Alto Networks (PANW)

Palo Alto Networks (NASDAQ:PANW) is another prominent player in the cybersecurity industry. The company retains a narrow lead in the firewall industry and offers Cortex XDR, similar to CrowdStrike’s Falcon. 

Like Falcon, Cortex XDR is a cloud end-point security solution. However, it is not needed to achieve Zero Trust Architecture. Instead, the company integrates the AI-powered Prisma Access platform to achieve the same effect. 

The solution claims to offer a simplified user experience while still being able to intercept malicious traffic through SSL/TLS ports.  

In its third quarter fiscal 2024 result, Palo Alto Networks reported a 15% year-on-year rise in revenue to $2 billion. It also reported net income of $278.8 million compared to $107.8 million the previous year. 

As of July 27, PANW stock is valued at $316, a 7% gain year-to-date and an over 27% gain over the past 12 months. When looking at key indicators, the stock is trading at a huge discount to its 52-week high of $380.84 and above both the 50-day and 200-day moving averages of $320.92 and $299.23, respectively. 

PANW stock has seen huge gains this year and over the past 12 months, beating the market indices. With an added boost that could come from the CrowdSrike outage, it has the potential to be one of the best-performing cybersecurity stocks of 2024. 

The company already offers a product with capabilities similar to Falcon’s. Consequently, Palo Alto Networks will be a natural choice for IT managers looking for alternatives to CrowdStrike products. 

SentinelOne (S)

SentinelOne (NYSE:S) bills itself as an autonomous platform. Its main product is the Singularity platform, which integrates artificial intelligence to fight cybersecurity threats. The platform maps a device’s activities and looks for anything suspicious in real time. 

Like CrowdStrike, SentinelOne offers endpoint security solutions. An endpoint is a device connected to a network. It must perform at the highest level as any issues could take down the whole network. 

Traditionally, an antivirus comes with a list of viruses and actively scans for them. However, that creates problems as new viruses cannot be detected. This is where endpoint solutions like SentinelOne shine. They identify threats in real time and act to stop them before they cause any harm. 

SentinelOne’s AI-powered system could give it an edge. Coupled with the CrowdStrike outage, many cybersecurity managers might consider it the better alternative. Before the blackout, many analysts considered these two to have similar capabilities. CrowdStrike’s recent debacle could push it to the second tier, making SentinelOne an awesome investment. 

Revenue is up 40% year over year to $186.4 million in the first quarter of fiscal 2025. For the second quarter of fiscal 2025, SentinelOne forecast revenue of $197 million and $808 million to 815 million for the full year.

Following the CrowdStrike outage, SentinelOne has emerged as a worthy alternative with similar capabilities and features. If you want to capitalize on this global event, adding S stock to your portfolio could pay off in the long run.

On the date of publication, Joel Lim 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.

On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.