Cybersecurity Stocks to Watch

 

Top cybersecurity stocks

Palo Alto Networks (PANW)

Palo Alto Networks is a leader in providing network security and firewalls according to Gartner and Forrester reports. Its unique selling point comes from inventing the Next Generation Firewall which is focused on providing AI powered security for hybrid environments, with comprehensive, unified protection across network, cloud and security operations. It also has a strong and growing enterprise customer base serving over 70,000 organizations worldwide including a majority of Fortune 100 companies. Its platform-based approach offers an integrated solution for network, cloud and security operations.

Fortinet (FTNT)

Fortinet has experienced significant growth in both cloud and hardware based security, fueled by broad market demand for its integrated security fabric, secure SD-WAN, cloud security solutions and hardware appliances powered by custom ASICs. Both the company’s Secure Access Service Edge (SASE) and Unified SASE offering offer accelerated revenue with strong year-on year growth in FortiSASE deals. The company’s physical firewalls remains a market leader offering both performance and efficiency advantages across both their hardware and cloud-based offerings. Its market share is roughly 5.12% in the networking hardware market and the Q2 revenue for 2025 is $1.15bn, up 22%y/y driven by strong recurring revenue streams and enterprise demand.

CrowdStrike Holdings (CRWD)

CrowdStrike capabilities, particularly Threat Graph, uses APIs to communicate with a broad array of capabilities that prevent, detect and mitigate endpoint risks. The capabilities cover endpoint security, threat intelligence, managed services, security and IT operations. The Falcon platform which is the AI-powered cloud-native security platform uses AI and a single lightweight agent to provide real-time protection and visibility across endpoints, cloud workloads and identities. It also offers endpoint detection and response, vulnerability management and cloud security which are all managed through a unified console without requiring on-premise hardware. The platform uses rich telemetry, threat intelligence and advanced behavioural analysis to detect and stop breaches by identifying malicious indicators of attack and automating response actions.

Zscaler (ZS)

Zscaler is the world’s largest online cloud security platform that replaces traditional network security appliances with a cloud-based solution. Through the Zero Trust Exchange platform it securely connects users to applications and data regardless of their location which provides secure access and reduces security risks for organizations.  The Zscaler’s zero-trust architecture ensures enhanced cybersecurity by reducing the attack surface and preventing lateral movement. It also offers cost savings and reduced complexity by replacing legacy, on-premise hardware with a single cloud-native platform. Zscaler also supports digital transformation by securely enabling modern technologies like cloud computing.

Okta (OKTA)

Okta is a leader in identity and access management as a result of its cloud-native platform which provides secure, unified access for employees, partners and customers across a diverse range of applications and environments. Its key factors include the innovation around Zero Trust security and AI driven authentication. It also has a cast network of pre-built application integrations and a reputation for providing scalable, user friendly and mission critical solutions that simplify identity management at organizations. When it comes to enterprise security Okta acts as an identity and access management system, providing a unified platform to manage user identities, authenticate users and control access to applications and systems. Through its features like single sign-on, multi-factor authentication and lifecycle management it has strengthened its security, improved user experience and ensured compliance and a secure cloud migration.

Other leading cybersecurity companies

 

CyberArk Software (CYBR)

CyberArk is a specialist in providing privileged access management. Its focus on securing privileged credentials and secrets across hybrid environments offers a comprehensive solution for both human and machine identities. It also provides features like automated credential rotation, session recording and threat analysis to protect against insider and external threats. The company’s focus on security-first innovation and its Identity Security Platform allow for granular control and monitoring which enforces the principle of least privilege and reduces cyber risk.

Broadcom (AVGO)

Broadcom is a global technology provider known for designing and supplying semiconductor and infrastructure software solutions. When it acquired Symantec’s enterprise security business it managed to integrate the established enterprise security portfolio and strengthen its own software offering. The integration allowed Broadcom to offer its customer simpler, flexible licensing, cross-selling channels and a comprehensive approach to cybersecurity.

SentinelOne (S)

SentinelOne’s AI driven threat detection uses behaviroal analysis and machine learning to identify known and unknown cyber threats in real time. The autonomous response capability also neutralizes threats and isolates affected systems and removes malware with minimal disruption. The integrated system provides automated, instantaneous protection across endpoints, cloud, containers and IoT devices and also reduces manual intervention and speeds up response times.

Datadog (DDOG)

Datadog is a software-as-a-service based platform which provides monitoring and analytics for cloud-scale applications and infrastructure. The infrastructure monitoring capabilities enhance cybersecurity and provide full visibility into the technology stack from servers and containers to applications and cloud services which allows for real-time anomaly detection. The Security Graph is also used to visualize risk paths and automated responses to detected security events.

Akamai (AKAM)

Akamai is a content delivery network and cybersecurity platform which is responsible for optimizing content delivery and protecting web applications. The globally distributed network ensures fast, secure data delivery even in high-demand environments.

Cybersecurity ETFs and funds

First Trust NASDAQ CEA Cybersecurity ETF (CIBR)

The First Trust NASDAQ Cybersecurity ETF is an exchange-traded fund that tracks both the price and yield of the Nasdaq CTA cybersecurity index. Stocks which are classified as cybersecurity will be found in this index, and the fund’s strategy is to provide investor returns which exceed or are on par with the specialized equity index

Amplify Cybersecurity ETF (HACK)

The Amplify Cybersecurity ETF which is largely know by its ticker symbol HACK is a passively managed ETF launched in 2014 to provide investment results which mirror the performance of the Nasdaq ISE Cyber Security Select Index. The ETF invests in stocks of global companies which are directly involved in providing cybersecurity technology and services.

Global X Cybersecurity ETF (BUGG)

The Global X Cybersecurity ETF which has BUGG as its ticker symbol is and exchange traded fund which invests in publicly traded cybersecurity companies. It aims to track the performance of the Indxx Cybersecurity Index and provides investors with exposure to a global portfolio of companies developing technologies and services to prevent digital threats like hacking, malware and data breaches.

How to invest in cybersecurity stocks

Before one can invest in cybersecurity stocks they need to open an account with a brokerage firm and then choose between buying individual stocks or an ETF. Once you’ve funded your account you can search for specific stocks or ETFs. It’s also important to analyze the company’s performance and complete the purchase through a brokerage platform. Some of the factors to consider when it comes to investing in cybersecurity stocks is the price-to-earnings ratio. It’s important to also assess the growth drivers like the increasing cyber threats and cloud adoption. Increased regulatory scrutiny, market volatility and the specific risks of AI- driven attacks also affect the long-term demand for cybersecurity.

Investment considerations for cybersecurity stocks

Cybersecurity stocks are gaining momentum due to the increased scale which gives them more customer data to feed their AI models. A major cyberattack also has a significant negative impact on the stock performance of the breached company. However the increased awareness and demand for security products and services following these attacks also leads to a positive and statistically significant abnormal returns for the cybersecurity firm.

What company does NASA use for cybersecurity?

NASA uses Booz Allen Hamilton for large-scale cybersecurity and privacy solutions. It also uses specialized vendors like Bitsight and Interos for supply chain risk management and AEGIS for network security and zero trust architecture. It also uses an internal Security Operations Center for monitoring and incident response.

What are some of the leading ETFs for cybersecurity?

The leading ETFs for cybersecurity include First Trust NASDAQ, and iShares Digital Security UCITS. Other prominent options include the L&G Cyber Security UCITS ETF and the Global X Cybersecurity UCITS ETF.