Last year, hackers stayed busy, launching 2,365 cyberattacks and resulting in more than 343 million victims. This wake-up call has made cybersecurity stocks more important than ever, turning them into a hotbed for investors.
Despite all the technological breakthroughs and global increase in cybersecurity spending, many institutions still need to catch up. Cyber threats evolve so fast that it’s tough to keep up. This gap is evident as even major players with substantial security measures face challenges in adapting quickly to new attack methods.
A striking example of these vulnerabilities was the severe cyberattack on Dell (NYSE:DELL) in May 2024. Led by a hacker named Menelik, this attack exploited weaknesses within Dell’s partner accounts and remained undetected while compromising the personal data of approximately 49 million customers. This breach illustrates the critical need for enhanced defense protocols across all access points.
As long as these risks persist, consider adding three of the most robust cybersecurity stocks to your portfolio.
Fortinet (FTNT)
Fortinet (NASDAQ:FTNT) excels with its top-notch solutions to protect businesses from relentless digital threats. It keeps investing in the Secure Access Service Edge (SASE) and secure operations, which totally makes sense as more companies move to the cloud.
Moreover, Fortinet is really doubling down on innovation by bringing all its cybersecurity products into one seamless security architecture. This is a smart approach as it sets it apart from the crowd. Plus, its recent acquisitions of Lacework and Next DLP further beef up its cloud security and data loss prevention capabilities.
Furthermore, Fortinet’s Q2 report was a knockout, sparking a 24% jump in its share price. It saw a year-over-year (YOY) increase in both its top- and bottom-line earnings, with revenue up 11% and net income soaring by 42.62%. The company’s strong balance sheet also contains a hefty net cash of $2.3 billion, which gives it a great spot to chase financial stability and new growth opportunities.
Zscaler (ZS)
Zscaler (NASDAQ:ZS), a leading cloud-based cybersecurity business, has seen its stock price plummet 33.5% from a 52-week high of $259.61. While a concern, this drop also presents an opportunity for investors as Zscaler continues to strengthen its position in the cybersecurity realm.
Financially, Zscaler generated remarkable results. In Q3 2024, it reported a 32% bump in YOY revenue, hitting $553.5 million. This growth was largely driven by the success of its Zscaler Internet Access and Zscaler Private Access solutions, which are gaining popularity and becoming a trusted choice among enterprise customers. Additionally, non-GAAP net income increased by 87.3%, reflecting its strong investments in product innovation.
Zscaler’s products revolve around the Zero Trust Exchange platform, reinventing safe network access by connecting users directly to applications. With over 400 billion transactions processed daily, the platform’s resilience is a testament to the trust it commands. Moreover, the launch of the AI Data Protection Platform elevates its capacity to address new AI-related security challenges, cementing its leadership in digital defense.
Okta (OKTA)
Okta (NASDAQ:OKTA) is a leader in cloud-based identity management. The company is enhancing its security framework and product offerings. Despite data breaches in 2022 and 2023, Okta remains resilient. It has shown a strong commitment to strengthening its defenses.
A significant step in this direction was the acquisition of Spera Security, which has bolstered Okta’s capabilities in identity threat detection and security posture management. Moreover, the company launched its Identity Security Posture, a proactive approach to addressing vulnerabilities before they can be exploited. This initiative is part of its broader strategy to strengthen security following the 2023 breach, underscoring its dedication to evolving security needs.
Financially, Okta’s Q1 results are promising, with revenues climbing 19% YOY to $617 million, surpassing expectations. It also raised its full-year revenue forecast to $2.53-$2.54 billion, reflecting a solid 12% annual growth. On top of that, TipRanks analysts see an impressive 20% upside potential, making this an excellent opportunity for investors.
On the date of publication, Nabeel Bukhari 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.
