If investors want to future-proof their portfolio, they should purchase strong buy cybersecurity stocks since cyber assaults are becoming more sophisticated and could cost $9.5 trillion globally in 2024.
Cloud intrusions soared 75%, and malware-free attacks increased dramatically, the 2024 CrowdStrike (NASDAQ:CRWD) Global Threat Report reveals. These assaults use legitimate credentials and technology, making them hard to detect and counter.
Over 25% of 2023 attacks were on manufacturing. Financial cyberattacks, including interactive hacking, rose 80%.
Further emphasizing the importance of cyber attacks and strong buy cybersecurity stocks, the SEC compels stock market firms to notify significant hacking instances within four business days.
In addition, the Biden-Harris Administration’s National Cybersecurity Strategy emphasizes the importance of strong cybersecurity stocks in the national economy by shifting cybersecurity from individuals and smaller groups to larger companies that can manage attacks.
Any investor looking forward will appreciate the appeal of investing in cybersecurity, a $2 trillion industry, but the best approach to invest is to play it safe and purchase strong buy cybersecurity stocks that offer upside as well.
CyberArk Software (CYBR)
CyberArk Software (NASDAQ:CYBR) manages restricted access, which means locking down accounts with special access to important services; the average price target is $297, up 16% from its current price of $257, and 21 of 22 analysts recommend buying the stock.
In major news, CYBR is acquiring machine identity management pioneer Venafi to strengthen its identity security platform under a $1.54 billion agreement. CyberArk will integrate Venafi’s technologies onto its platform following the acquisition to improve security.
Also, Coca-Cola Hellenic Bottling Company’s choice of CyberArk’s Identity Security Platform for cloud migration demonstrates the company’s credibility.
What’s more, CyberArk hosts its security platform in the UAE to comply with data sovereignty requirements and provide better protection to local customers.
CyberArk also exhibited CORA AI at IMPACT 24, boosting its reputation as a buy cybersecurity stock. New AI-powered features improve identity security in many settings and enhance risk identification and response. Unsurprisingly, given the advancements in the UAE and new AI services, analysts expect big things from CYBR moving forward, with EPS projected to climb 13% and 77%, respectively, in fiscal 2024 and 2025.
Zscaler (ZS)
After falling 16% this year, Zscaler (NASDAQ:ZS) is a great bargain with an average price target of $230, meaning a 29% upside.
Investors think Zscaler’s target markets are saturated and growth halting, as the stock price fell. The company’s fiscal third quarter sales grew 32% to $553.2 million and net income rose 141%, beating Wall Street expectations by double digits. Calculated billings rose 30% and GAAP net income rose from $46 million to $19.1 million. Non-GAAP income grew $139.8 million.
Furthermore, Alphabet’s (NASDAQ:GOOG, NASDAQ:GOOGL) Google and Zscaler continue to work on improving zero-trust security through their strategic partnership. Chrome corporate-Google Workspace integration improves threat detection, access control, VPN removal, and corporate user security.
Earlier this year, Zscaler upgraded its AI-driven Data Protection Platform. These technologies protect 400 billion daily data exchanges. Enterprise data security, threat detection, and response will improve.
These build on four cybersecurity services from Zscaler launched recently. These services aim to improve its Zero Trust Exchange platform and include Zscaler Risk360, Zero Trust Branch Connectivity, ITDR, and ZSLogin.
Zscaler also acquired Avalor Technologies and Airgap Networks to pioneer AI and Zero Trust SASE. ZS’s attractiveness among strong buy cybersecurity stocks is enhanced by these acquisitions, which improve protection services.
Palo Alto Networks (PANW)
Palo Alto Networks (NASDAQ:PANW) is coming off yet another stellar quarter in terms of its earnings, posting solid third-quarter 2024 financial performance, beating consensus projections of $1.25 with $1.32 EPS. Revenue was $1.99 billion, above projections of $1.97 billion, the twelfth time in a row that PANW bested Street estimates; no surprise, PANW has an average price target of roughly $342, indicating a 10% upside potential, not bad among strong buy cybersecurity stocks.
Palo Alto Networks is using AI and machine learning in its cybersecurity products to identify and respond to threats, which will help immensely in making sure PANW can retain its winning streak on the bottom line. This connection intends to provide proactive and automatic security measures, relieving IT staff and boosting security.
PANW has also started a program to help customers switch from old security solutions to the Cortex platform for desktop security. This move aims to provide more advanced and unified safety measures to deal with the changing risks in the online world.
Palo Alto Networks has also launched a private 5G protection solution alongside other firms. This solution provides comprehensive client security for private 5G network operators.
Moreover, in keeping with its expansionary efforts, Palo Alto Networks is investing in Qatari cloud infrastructure, which is part of the company’s commitment to provide regional markets access to its platform and services.
On the date of publication, Faizan Farooque 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.