According to a study from Chubb, senior leaders recently identified digital and technologies risk as the main threats to company growth. More than 40 % of executive responders stated that a key component of their organization’s computer risk monitoring work.
As the security landscape becomes more sophisticated, that percentage is likely to climb. There are a number of components that are adding difficulty, according to an from the World Economic Forum. They include thieves ‘ use of AI systems, rising geopolitical conflicts and the increase in data security rules.
The best security companies have the best chance to prosper in this rapidly changing environment. Proven security providers gain market share and will get so from their experience.
Consider adding intended security exposure to your portfolio to take advantage of these trends. Read on to learn about the six security stocks that have the potential to grow in 2025 and above.
Methodology Used in These Stock Picks for Cybersecurity
Listing all holdings in WisdomTree Cybersecurity Fund (WCBR ) and Global X Cybersecurity ETF ( BUG) helped to come up with these top cybersecurity stock picks. From that party, shares with these features were removed from thought:
- Companies listed on foreign markets
- Companies with fewer than 10 addressing experts
- stocks with consensus price targets that are not more than the current trading volume by at least 10 %.
The bottom three cybersecurity stocks were dropped, and the remaining nine were ordered by FCF (FCF ) per share, from highest to lowest. Operating cash flow, less funds expenditures or expenditure, was calculated from each agency’s most recent year-end economic releases. Capital expenses included both capital expenditures for home, flower, and technology and capital expenditures for software.
6 Best Security Companies to Get In 2025
Six security stocks are listed in the table below, with potential growth in 2025.
Read on to learn more about these security firms and why you might want to consider them. Bulleted measures come from stockanalysis.com, except for the FCF per share, which was calculated from business monetary releases.
For more investing tips, see best shares for 2025, best electricity stocks and best development stocks.
1. Akamai Technologies ( AKAM )
- FCF per discuss:$ 6.05
- Forward Dau: 15.20
- 1-Year stock price change: -18.14 %
- Price specific back: 14.90 %
- Year-over-year revenue growth: 5.92 %
- Expected profit growth second time: 6.86 %
- Expected EPS growth next year: 6.77 %
Akamai Technologies Business Overview
Akamai Technologies provides cloud computing, content distribution and security solutions. Application and API protection, app and abuse security, network security and programs supporting a zero-trust strategy are part of the offering. A zero-trust security approach assumes that network breaches are possible and validates each purchase correctly.
Akamai sells to financial companies, video streaming companies, healthcare providers, shops, medicine and the U. S. war.
Why AKAM Is A Best Decision
Akamai has demonstrated its ability to increase sales and earnings. The organization has the highest and most constant operating ratio among the stocks on this list, despite the sales trend being more horizontal than the earnings.
In terms of safety options and sky technology, Akamai is now expanding. In its most recent earnings launch, the organization reported 17 % quarter-over-quarter revenue growth in these areas. Company-wide revenue rise rose a more subdued 4 %.
Going forward, high-single-digit sales growth for Akamai through 2028, with annual EPS in the range of about$ 6.50 to nearly$ 10.
2. Zscaler ( ZS )
- FCF per discuss:$ 3.81
- Forward Pa: 66.39
- 1-Year stock price change: -28.84 %
- Price specific back: 14.92 %
- Year-over-year revenue growth: 10.05 %
- Expected profit growth second time: 5.36 %
- Expected EPS growth next year: 2.08 %
Zscaler Business Overview
Customers pay monthly for a sky safety platform offered by Zscaler. Clients operate in various sectors, including household and personal items, bank, vehicles, hospitality and biotech.
Why ZS Is A Best Decision
Zscaler says its line protection sky system is the world’s largest. The company launched in 2007 and has since produced remarkable year-over-year revenue growth. In the past three decades, revenue grew an average of 48 % annually.
The revenue side of the equation has been more difficult. Zscaler has not yet achieved GAAP income. However, the company does have solid cash flow and the second-highest Dividends per share on this list. Cash flow manufacturing should proceed, as the Zscaler group optimizes its presently successful go-to-market and upsell strategies.
In the October 2024 quarter, Zscaler 26 % quarter-over-quarter revenue growth on” strong sales murder”. Operating cash flow was$ 291.9 million and 53 % of revenue. The GAAP loss per share shrank to$ 30.7 million from$ 46.1 million in the prior year period.
3. Okta ( OKTA )
- FCF per reveal:$ 2.85
- Forward Pa: 32.75
- 1-Year stock price change: 17.56 %
- Price target back: 11.95 %
- Year-over-year revenue growth: 26.30 %
- Expected profit growth second time: 21.55 %
- Expected EPS growth next year: 14.59 %
Okta Business Overview
Okta provides cloud-based labor and client identity alternatives. The business is best known for its doorway service, which enables logged-in users to access various programs with one login. More than half of the Fortune 100 companies are clients, along with hundreds of different businesses.
Why OKTA Is A Best Decision
Okta has powerful market positioning, great development history and a strong customer list. Recently, the company has been focused on attracting more high-value agreements and innovating its providing to enhance push options. The anticipates a 15 % sales increase and a 25 % FCF margin for the fiscal year 2025.
Obviously, a 15 % sales development expectation doesn’t contrast well to Okta’s history. Annual sales growth from fiscal years 2019 to 2023 ranged from 40 % to 55 %. Fiscal 2024 profits rise was about 20 %.
Data vulnerabilities have remained a concern for Okta. Situations in and kept OKTA’s stock value lower, as other tech companies rebounded clearly from the technology sell-off. However, in a subsequent earnings call, the organization the violation was no more affecting results quantitatively.
As a prospective buyer, you can determine Okta’s breach story in two ways. You can believe Okta may repeat its faults, which would be terrible for customers and shareholders. Or, you can interpret Okta’s troubles as a possible buying opportunity for a company with some positives: Okta operates in a growing industry, produces more than$ 400 million annually in FCF and is nearing GAAP profitability.
4. Datadog ( DDOG )
- FCF per promote:$ 1.76
- Forward Dau: 76.56
- 1-Year stock price change: -14.86 %
- Price specific back: 12.24 %
- Year-over-year revenue growth: 30.77 %
- Expected profit development second time: 20.64 %
- Expected EPS growth next year: 19.91 %
Datadog Business Overview
Datadog offers services for tech monitoring and logging. Customers use the system to maintain, troubleshoot and improve their cloud-based IT infrastructure, including servers, applications and databases. The customer list includes Samsung, Shell, Deloitte, Comcast and Nasdaq.
Why DDOG Is A Top Choice
In 2023, Grand View Research the global cloud market value at$ 602.31 billion. The researcher also projected a CAGR of 21.2 % between 2024 and 2030. That growth benefits Datadog, which has a strong market position in cloud security. In order for customers to track the usage and performance of their AI-based applications, the company’s platform integrates with OpenAI.
Due to uncertainty regarding the company’s potential in the AI monitoring space, Stifel analysts recently DDOG. However, Bank of America Securities analyst Koji Ikeda has a different view, as reported by . Ikeda recently raised the price target and maintained a buy rating for DDOG stock, noting that the company’s future prospects without AI are still promising.
For the September quarter, Datadog 26 % higher sales quarter-over-quarter and strong growth in customers with annual recurring revenue of at least$ 100, 000. The company also produced FCF of$ 204 million.
5. Elastic N. V. ( ESTC )
- FCF per share:$ 1.40
- Forward PE: 66.21
- 1-Year stock price change: 10.89 %
- Price target upside: 11.00 %
- Year-over-year revenue growth: 16.84 %
- Expected revenue growth next year: 7.81 %
- Expected EPS growth next year: 6.37 %
Elastic N. V. Business Overview
Elastic N. V. makes enterprise software that searches, analyzes, logs and visualizes data. The company is best known for its Elasticsearch application, used by like Uber, Instacart and Tinder. Additionally, Elastic provides a security solution that can identify, investigate, and prevent cybersecurity threats.
Why ESTC Is A Top Choice
Analysts appreciate Elastic’s position in AI and cybersecurity, two fast-growing industries. Daniel Ives, a Wedbush analyst, has AI as Elastic’s biggest growth engine. Ives predicts that as the AI revolution develops, Elastic will continue to see a strong demand for its platform.
Investors appreciate Elastic’s habit of beating earnings expectations. In the first two quarters of fiscal 2025, Elastic the EPS consensus by 36 % and 55 %, respectively. Highlights from the include an 18 % revenue gain, a 59 % increase in non-GAAP diluted EPS and a 16 % increase in the high-value customer count from the prior-year quarter. High-value customers are those with annual contract values over$ 100, 000.
6. Rapid7 ( RPD )
- FCF per share:$ 1.33
- Forward PE: 17.28
- 1-Year stock price change: -7.61 %
- Price target upside: 15.29 %
- Year-over-year revenue growth: 13.97 %
- Expected revenue growth next year: 9.64 %
- Expected EPS growth next year: 18.31 %
Rapid7 Business Overview
Rapid7 manages an AI-powered vulnerability management platform that can analyze network activity, proactively identify threats, test applications for security holes, monitor cloud resources and third-party integrations and respond to threats.
Why RPD Is A Top Choice
Rapid7 generates more than$ 820 million in annual recurring revenue and services more than 11, 000 customers. While the company’s revenue growth has slowed recently, Rapid7 has also recently achieved GAAP profitability—a milestone in the cybersecurity space. The business reported a GAAP net income of$ 46.9 million over the past 12 months after a GAAP net loss of$ 149 million in 2023.
However, analyst Adam Borg of Stifel Nicolaus is cautious about Rapid7’s growth prospects. According to Berg, the cybersecurity vulnerability management niche may not offer the growth prospects that investors want to see from Rapid7. Despite Borg’s opinion, the average analyst earnings outlook for Rapid7 is positive. show steady EPS growth from$ 2.31 in 2024 to$ 4.02 in 2029.
In the third quarter 2024, Rapid7 grew sales 8 % year-over-year, and produced FCF of$ 39 million.
Bottom Line
In the upcoming years, cybersecurity stocks may experience negative effects due to geopolitical factors and technology. The most efficient providers will gain the most. To add cybersecurity exposure to your portfolio, look for companies with strong growth records and improving profitability. Alternately, you can choose a cybersecurity ETF that spreads risk over a few dozen stocks.