The cybersecurity sector focuses on protecting digital systems, networks, and data from attacks and unauthorized access. It’s a rapidly growing industry as more businesses and organizations rely on digital infrastructure. Cybersecurity stocks represent companies that develop and provide these protective technologies and services. The sector has gained attention due to increasing cyber threats and high-profile data breaches.
Investing in cybersecurity stocks can offer several advantages. The demand for cybersecurity solutions is likely to grow as digital threats evolve. Many cybersecurity companies have recurring revenue models, providing steady income streams. The sector often sees increased investment during times of geopolitical tension. However, cybersecurity stocks also come with risks. The industry is highly competitive, with new players constantly entering the market. Technological changes can quickly make existing solutions obsolete. Some cybersecurity stocks can be volatile, reacting strongly to news of major cyber attacks.
When considering cybersecurity stocks, it’s important to research a company’s specific niche and competitive advantages. Look at factors like client retention rates and the company’s ability to innovate. Consider the broader cybersecurity landscape and potential regulatory changes. Be aware that some cybersecurity firms may not yet be profitable. Stay informed about emerging cyber threats and technological advancements in the field. That said, here are two cybersecurity stocks to watch in the stock market today.
Cybersecurity Stocks To Buy [Or Avoid] Now
- Crowdstrike Holdings Inc. (NASDAQ: CRWD)
- Palo Alto Networks Inc. (NASDAQ: PANW)
CrowdStrike Holdings (CRWD Stock)
Leading off, CrowdStrike Holdings Inc. (CRWD) is a cybersecurity technology company that provides cloud-based services for endpoint and cloud workload protection. They use artificial intelligence and machine learning to detect and prevent security breaches. CrowdStrike’s platform offers real-time threat intelligence and response capabilities for organizations of various sizes across different industries.
Just this week, CrowdStrike Holdings reported its second quarter fiscal year 2025 financial results. Getting right into it, the cybersecurity company notched in Q2 2025 earnings of $0.98 per share, with revenue of $963.87 million. This is versus analysts’ estimates for the quarter which were earning estimates of $0.97 per share, and revenue estimates of $959.35 million. In addition, the company also notched in a 31.74% increase in revenue compared to the same period, the prior year.
Year-to-date, shares of CrowdStrike stock have moved higher by 7.01% so far. Meanwhile, during Thursday’s pre-market trading session, CRWD stock is trading slightly lower ahead of the open by 0.99% at $264.20 a share.
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Palo Alto Networks (PANW Stock)
Next up, Palo Alto Networks Inc. (PANW) is a global cybersecurity company that offers a wide range of security products and services. They provide firewalls, cloud-based security solutions, and advanced threat detection systems. Palo Alto Networks focuses on network security, cloud security, and artificial intelligence-powered threat analysis to protect organizations from cyber attacks.
Earlier this month, Palo Alto Networks announced its most recent Q4 2024 financial results. Diving in, the company reported earnings of $1.49 per share, with revenue of $2.19 billion for Q4 2024. This is compared to Wall Street’s consensus estimates for the quarter which were an EPS of $1.41 per share, on revenue estimates of $2.16 billion. Additionally, revenue gained by 12.09% on a year-over-year time basis.
In 2024 shares of PANW stock have advanced by 21.29% year-to-date. Moreover, during Thursday’s pre-market trading session, Palo Alto Networks stock is trading slightly higher up 0.43% at $351.93 a share.
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