Given the surge in cyber attacks affecting large companies, betting on the best cybersecurity stocks has never been more important.
Violations UnitedHealth (New York Stock Exchange:United Nations University) will likely be one of the most significant cybersecurity incidents in recent history. To mitigate the damage, UNH had to pay $22 million. The ransom demands have had a significant impact on the company’s revenue. Additionally, the company spends more than $870 million annually on cybersecurity, a figure that is expected to increase in the coming years. Similarly, Microsoft Azure experienced a major breach in which the accounts of hundreds of senior executives were compromised.
Therefore, these high-profile breaches highlight the importance of robust cybersecurity solutions. With that being said, here are three of the best cybersecurity stocks to buy that offer mission-critical security solutions. These companies have grown rapidly in recent years and are likely to continue to do well in the near term. Looking forward, the UNH incident will only add fuel to the fire, spurring a solid upside for these stocks.
Best Cybersecurity Stock to Buy: Okta (OKTA)
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Octa (Nasdaq:Octa)’s powerful cloud software secures user authentication across applications and devices. With 80% of data breaches involving compromised identities, Okta plays a key role in combating identity attacks and securing digital access points.
The company has been one of the most stable companies in its niche for many years. Bears don’t have much room to be shaken, given that it has beaten expectations on both lines for the past 16 consecutive quarters. Moreover, in its Q1 2025 report, revenue rose 19.1% year over year to $617 million, again beating expectations by a wide margin. EPS also came in at 65 cents, beating expectations by 10 cents.
Going forward, investors are looking to remain strong. Healthy operating margins achieved in Q2 The company is forecasting a growth rate of 19% to 20%, while expecting annual sales to increase 12% for the full fiscal year. Additionally, with a strong net cash balance of $1.2 billion, the company is well-positioned to drive future organic growth.
moreover, Okta stock is currently trading at 22% The stock is trading below its 52-week high of $114.5 and is down 5% this month after rising 35% last year, making it a good time to buy on the dip.
Fortinet (FTNT)
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Fortinet (Nasdaq:FTNT) shines as a leader in the cybersecurity space, backed by long-term trends and a strong operational track record. Its reach across three key growth areas – network security, secure access service edge (SASE), and security operations – sets it apart from its peers. Additionally, it boasts a leadership position in cutting-edge firewall technology, solidifying its position as a giant in its niche.
Additionally, the company has grown its free cash flow by more than 22% over the past five years, which has resulted in its stock price rising sharply. Value increased by over 289% That’s up more than 21% over the past three years, and while revenue growth has slowed from previous highs, strong growth is expected in the coming quarters. Be expected It is expected to generate $5.8 billion this year, up 9.4% from last year, and reach $6.55 billion by 2025.
Cloudflare (NET)
![In this photo illustration, the Cloudflare Inc (NET) logo is displayed on a smartphone.](https://investorplace.com/wp-content/uploads/2022/03/net_cloudflare_1600-300x169.png)
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Cloudflare (New York Stock Exchange:Net) stands out as another top cybersecurity company that effectively layers advanced AI and machine learning algorithms for real-time threat detection and mitigation. Moreover, the company’s innovative DNA and strategic partnerships continue to add value to its robust solutions. As businesses continue to move to cloud-based infrastructure, Cloudflare’s versatile AI-driven cybersecurity offerings position the company for significant expansion over the long term.
Recent quarterly reports have been impressive, with the Q1 report highlighting the success of their AI-integrated products. First quarter revenue increased 30% year over year to $378.6 million. Non-GAAP EPS came in at 16 cents, beating expectations by 3 cents. To put it in perspective, Cloudflare has consistently met or beat revenue expectations every quarter since the third quarter (Q3) of 2019.
Additionally, the company is forecasting second-quarter revenue of $393.5 million to $394.5 million, continuing its upward trend, and Wall Street analysts are expecting NET shares to rise 11% from current levels. I rate it a “Moderate Buy.”
Therefore, with a strong financial performance and high customer satisfaction, Cloudflare remains a great cybersecurity choice for the long term. Given its promising outlook, Cloudflare is positioned to benefit greatly by tapping into the growing demand for powerful AI-powered cybersecurity solutions.
As of the date of publication, Muslim Farooq did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are solely those of the author, which is subject to InvestorPlace.com copyright. Publication guidelines.