Cybersecurity spending is expected to continue growing over the next decade, which means that leading cyber-security companies have the potential to deliver outsized returns for investors.
Here are 10 cybersecurity companies that are leading the charge in digital defense, and are likely to benefit from the growth of the sector.
10 Leading Cybersecurity Stocks
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Here are a few of our favorite stocks from this list.
SentinelOne (S)
- Market Cap: $6 billion
- Industry: Software
- Analyst Upside: 44%
- P/E Ratio: 92.8
Company Overview: SentinelOne (S) is a cybersecurity company that provides AI-powered endpoint protection, threat detection, and response solutions for businesses of all sizes. Its Singularity platform is designed to prevent, detect, and autonomously respond to cyber threats across devices and cloud environments.
Business Strategy: SentinelOne earns revenue through its subscription-based software, where it focuses on enterprise and mid-market customers. Today, the company is focused on expanding its customer base, increasing upsells with new modules, and competing on speed and automation in threat response.
Recent Developments:
- Earnings & Profitability: SentinelOne recently reported narrowing losses and accelerating operating leverage, showing early signs of a path toward profitability.
- Growth Trends: The company continues to grow its annual recurring revenue, driven by strong customer retention and demand for AI-driven security.
- Shareholder Returns: The stock has traded more expensively than its peers, but recent pullbacks could offer a more reasonable entry for long-term investors focused on cybersecurity growth.
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ZScaler (ZS)
- Market Cap: $31 billion
- Industry: Software
- Analyst Upside: 17%
- P/E Ratio: 61.2
Company Overview: Zscaler, Inc. is a leading cloud-based cybersecurity company that offers secure internet access and private application protection to businesses worldwide. Its key product offerings include Zscaler Internet Access (ZIA) and Zscaler Private Access (ZPA), and these products help organizations manage network security without traditional hardware-based solutions.
Business Strategy: Zscaler serves enterprises looking to simplify security while enabling remote work and digital transformation. The company’s strategic direction focuses on expanding its product portfolio and accelerating adoption across global markets, with an emphasis on scalability and ease of deployment.
Recent Developments:
- Earnings & Profitability: Zscaler has seen strong revenue growth, driven by increasing demand for cloud security solutions, though profitability remains a key focus as the company continues to reinvest in growth initiatives.
- Growth Trends: The company is benefiting from the continued shift to cloud-based infrastructure, with expanding customer adoption in both large enterprises and SMBs, particularly in North America and Europe.
- Shareholder Returns: Zscaler has a history of reinvesting earnings for growth, while its long-term strategy aims to drive significant shareholder value through innovation and market share expansion.
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Fortinet, Inc. (FTNT)
- Market Cap: $76 billion
- Industry: Software
- Analyst Upside: 18%
- P/E Ratio: 39.6
Company Overview: Fortinet, Inc. is a global leader in cybersecurity solutions, providing a broad range of network security products designed to protect enterprises from cyber threats. Key products include FortiGate firewalls, FortiAnalyzer, and FortiManager, which secure networks, endpoints, and applications for organizations worldwide.
Business Strategy: Fortinet generates revenue through the sale of its security hardware and software products, along with subscription-based services such as threat intelligence and cloud security. The company’s strategic focus is on expanding its market leadership in network security, with an emphasis on integrated security solutions and continued innovation in next-gen firewalls and AI-powered threat protection.
Recent Developments:
- Earnings & Profitability: Fortinet reported strong earnings growth, driven by robust demand for its integrated security solutions and continued expansion in key markets. The company maintains high margins, bolstered by its subscription-based model.
- Growth Trends: Fortinet continues to gain market share in the network security space, benefiting from the rise in cybersecurity spending and the growing adoption of cloud services, especially in enterprise and SMB segments.
- Shareholder Returns: Right now, the business is mostly focused on delivering consistent revenue growth, share repurchases, and reinvesting in R&D for long-term market leadership.
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TIKR Takeaway
These 10 cybersecurity giants are at the forefront of digital cybersecurity defense and look to be positioned to benefit from strong long-term growth.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
