The mass IT outage caused by CrowdStrike’s (NASDAQ:CRWD) update earlier this month has opened the door for the company’s rivals to gain market share at its expense. Morgan Stanley, which remains bullish overall on CrowdStrike stock, predicted that the firm’s billings would fall by 20% in the second half of the year.

Moreover, as I reported in a previous column, a survey carried out by investment bank Evercore ISI showed that “many of the cybersecurity firm’s customers are considering slowing or pausing spending on CrowdStrike.” With CrowdStrike, the largest endpoint security firm, poised to lose market share going forward, a number of its strongest rivals are likely to get a boost from the company’s woes.

Here are three cybersecurity stocks that are in the latter category.

SentinelOne (S)

Like CrowdStrike, SentinelOne (NYSE:S) offers a major cybersecurity platform. Moreover, the firm is a sizeable player in the cybersecurity space as it generated $186 million of revenue in the first quarter of this year. In light of the firm’s interchangeability with CrowdStrike and its fairly large size, I believe that a significant number of the firms which decide to leave CrowdStrike will elect to hire SentinelOne. As a result, I view SentinelOne as one of the best cybersecurity stocks to buy.

Moreover, on July 15, investment bank Baird offered very enthusiastic praise for SentinelOne. Specifically, the bank wrote that SentinelOne “remains at the forefront of cybersecurity innovation” as it has “a strategic focus on cloud security, IoT protection, and AI-driven analytics.” Baird started coverage of S stock with a $25 price target and an “outperform” rating.

Also impressively, the firm’s Q1 revenue jumped 40% versus the same period a year earlier, while it generated net cash of $42 million from its operating activities, versus a loss of $28 million in Q1 of 2023.

BlackBerry (BB)

Last quarter, BlackBerry (NYSE:BB) changed the name of its GUARD solution to Cylance MDR (Managed Detection and Response ). CrowdStrike also has an MDR system. Moreover, BlackBerry’s Cylance unit has a long history of using AI to detect cybersecurity threats, while BlackBerry has historically been adept at convincing large banks and governments to utilize its cybersecurity offerings. For example, last quarter, the company’s cybersecurity unit renewed contracts with one of the five largest U.S. banks, one of the five largest Canadian banks, the U.S. Transportation Security Administration, and the sizeable Canadian bank CIBC to renew their deals with.

Also boding well for BlackBerry stock, institutional investors bought 47.1 million shares of BB stock in Q1, while they only unloaded 15.3 million shares. In Q1, First Trust advisors purchased 18.7 million shares, while Canada Life Assurance acquired 3.46 million shares.

In the past, I’ve theorized that all or part of BlackBerry could be acquired, greatly lifting the shares in the process, and I still hold that view.

In light of all of these points, I view BlackBerry as one of the best cybersecurity stocks to buy.

Palo Alto Networks (PANW)

Investment bank Oppenheimer last week identified Palo Alto Networks (NASDAQ:PANW) as one of the potential beneficiaries of CrowdStrike’s issues.

Barron’s noted that Palo Alto has been looking to offer free access to its offerings to the customers of its rivals. In the aftermath of the CrowdStrike outage, the latter initiative could help Palo Alto sign up many of CrowdStrike’s departing customers, lifting Palo Alto’s financial results and PANW stock over the longer term.

In a note to investors on June 27, investment bank Baird wrote that firms’ response to Palo Alto’s new Secure access service edge architecture and its AI initiatives have been positive. Further, firms have been signing slightly longer contracts with Palo Alto, Baird reported.

The bank kept an “outperform” rating on the shares.

On the date of publication, Larry Ramer held a long position in BB. 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.