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Top 10 Cybersecurity Stocks to Invest in 2023

Introduction

Since the COVID-19 outbreak started, spending on cybersecurity has skyrocketed. Due to the necessity of cloud computing and remote operations, organizations now confront new security challenges.

According to the Identity Theft Resource Center, data breaches increased 68% last year, setting a new high for the number of instances. The number of data breaches increased by 14% year over year in the first quarter of 2022. It should not come as a surprise that global spending on cybersecurity is predicted to surpass $170 billion in 2022 (up roughly 13% from 2021), and the business will likely continue to experience rapid expansion for years to come. 

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As a result of the increased demand for next-generation security software, numerous cybersecurity equities experienced outstanding performance in 2020 and 2021. Some of the most excellent flyers were dampened by a bear market in 2022, but cybersecurity remains a popular investment theme.

Cybersecurity stocks have become a red-hot niche of the tech industry, so knowing how to invest in them can yield significant returns in the upcoming decade. Also, join the professional Cybersecurity Training Program to master this field.

Top Cybersecurity Stocks to Explore in 2023

There are several cybersecurity firms that offer essential assistance and services to enterprises that conduct business online and through electronic communication networks. Below is a quick summary of some of the top cybersecurity stocks to follow this year.

1. CrowdStrike Holdings

Regarding the best Cybersecurity stocks, CrowdStrike Holdings offers endpoint security, a defense for computers, servers, laptops, and other networked devices. CrowdStrike is especially well-suited for facilitating remote work because it is cloud-based. Machine learning, a subset of artificial intelligence, is used by CrowdStrike's software to identify security bugs and track down threats. Additionally, it is simple to deploy to the millions of people who work from home and the trillions of online devices. To better serve its customers, the company has continuously grown the number of modules on its platform. Additionally, it has new integration agreements with other tech firms to ensure that data protection is more uniform throughout an organization's IT infrastructure.

2. SentinelOne

Another recent pure-play cybersecurity startup to debut on the stock market is SentinelOne. SentinelOne's initial public offering (IPO) in June 2021, the largest ever for a cybersecurity company, raised $1.2 billion in cash and valued the company at $10 billion. The stock has fallen below its IPO price due to SentinelOne's slowed revenue growth and a difficult year for the stock market in 2022. Because of its rapid growth, SentinelOne is also steadily moving closer to becoming Because of its rapid growth, SentinelOne is also steadily moving closer to becoming profitable and has become a preferred choice for cybersecurity stocks.  It competes with CrowdStrike since it runs a cloud-based endpoint security platform. Market acceptance of its ability to identify and address cybersecurity risks is high. Still, this company comes in a leading position in the list of best cybersecurity stocks. Besides investment, if you are also looking for a long-term career as a Cybersecurity professional, begin your journey with the best Cybersecurity courses

3. Datadog

A cloud-native tool called Datadog is created to gather, watch over, and provide insights on cloud-based data and processes. To reduce the workload of busy IT teams, the corporation uses AI to help automate the process of monitoring huge and complicated data sets. One of the best cyber security stocks, Datadoc has also continuously added additional modules, such as cloud-based security and data monitoring, to its platform's functionality. Data analytics software is a significant and quickly expanding sector of the tech industry, which is good news for Datadog. Elastic (NYSE:ESTC) and Dynatrace (NYSE:DT) are two additional deserving software developers to consider in this market besides Splunk.

4. Cloudflare Inc

Cloudflare is another name in the lip cyber security stocks list. It is renowned for creating world-class software solutions for cybersecurity. It offers a global cloud platform, offering services including load balancing, video streaming, security, domain registration, and more. Despite a 52.9% year-over-year increase in revenue in Q2 2021, the company reported growing net losses. According to Cloudflare, unprecedented numbers of new large clients contributed to revenue growth, making is a better option in cyber security companies' stock. 
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5. Microsoft

Microsoft may not be the first company that comes to mind when considering companies to purchase the  best cybersecurity stocks. However, Microsoft is an attractive option if you want exposure to the industry in a way that allows you to sleep soundly regardless of what is occurring in the market. The business doesn't only focus on cybersecurity. However, the cybersecurity division is responsible for a rising company earnings. The cloud-based Office 365 software can also incorporate all the business' security measures. Furthermore, the corporation expanded its cybersecurity industry through acquisitions using its sizeable war chest.

6. Fortinet

Fortinet (FTNT), which specializes in offering solutions oriented toward securing data centers, is a well-liked option among the top cyber security stocks. FTNT stock carries a premium valuation, trading at 42 times the anticipated earnings. However, the business is firmly profitable, and through 2025, it is anticipated that revenue and earnings will increase by more than 20% annually. If the company can achieve those growth goals, its value should increase. Based on analysts' average price targets of $71, the present potential for FTNT stock is 28%, which is counted among the best cybersecurity stocks. 

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7. PFPT (Proofpoint)

 American security firm Proofpoint was established in 2002 and is ranked among the top cyber security companies stock. It provides a variety of cybersecurity services, including cloud protection, network sandboxing, and email protection. Several data protection systems, such as incident response, eDiscovery, and secure communication, are included in Proofpoint's security-as-a-service platform. Since its beginnings as an email security provider, the company's clientele now comprises large and mid-sized businesses.

8. Palo Alto Networks (PANW)

Palo Alto Networks (PANW), a pure-play cybersecurity company and one of the top cybersecurity stocks, sells security appliances, subscriptions, and support to businesses, governmental organizations, and service providers across the world. Firewall appliances, virtual firewalls, endpoint security, cloud security, and cybersecurity analytics are among the company's product offerings. Palo Alto Networks' next-generation firewall equipment is the foundation for its cybersecurity leadership. The company's product offering has recently expanded beyond network security to include cloud security and tools to help automate security operations. The complexity of an entity's threat management increases along with the volume of data and traffic generated off-premises.

9. Zscaler

Zscaler helps businesses defend against common cybersecurity attacks by securing important data and apps. The security company's Zero Trust Exchange platform offers speedy cloud access while assisting organizations in lowering risk and is counted among the top cyber security stocks. The platform's four key advantages are internet access, digital experience, private access, and cloud protection. Every day, the platform processes 160 billion transactions in 185 nations. The company has more than 80 industry partners, including Microsoft and Amazon. Despite strong sales growth, ZS shares fell after earnings due to a weaker-than-expected projection.

10. Check Point Software

Compared to most businesses, Check Point is more knowledgeable about online security. It was established in 1993 and is an Israeli company. It is currently one of the biggest cybersecurity companies in the world and a top pick among cybersecurity stocks. The business is still growing in all directions. It is growing by double digits on both platforms. Additionally, Check Point has a diversified clientele, with 49% of its sales coming from Europe, the Middle East, and Africa. Comparatively, Asia makes up 10% of the total, while the Americas make up 40%.

So these were the top cybersecurity stocks you can think of investing in. Continue reading to learn how to invest in them with incredibly minimal costs and get free access to pricey stock research tools.

How to Invest in Cybersecurity – The Right Approach

There are several approaches to take if you want to investigate how your portfolios could profit from the high-secular growth in cybersecurity. Below is a list of a handful of them.

  • Consider Thematic ETFs: Exchange-traded funds can bring broad exposure to the US as well as global companies that are working on providing network protection. 
  • Find Top Endpoint Security Providers: Earlier, these providers were focused on protecting the perimeter of a network by protecting the entry points into different connect devices like computers and mobile phones. 
  • Do Research on Defenses and Aerospace Firm: Companies from these spaces are increasingly investing in cybersecurity within their offerings. This has increased the geopolitical risk that blurs the lines between national defense and cybersecurity. 

Cybersecurity is still one of the most compelling secular growth opportunities. In recent years, this sector has surpassed its software industry counterparts. If you are considering investing, keep in mind that if macroeconomic pressure continues, this industry may be more vulnerable to further downside. Therefore, as valuations decline, increase exposure to your cybersecurity stocks shrewdly. 

Quick questions you should ask your advisor to gain a better understanding.

  • How can I get a piece of the cybersecurity industry's growth while still achieving my long-term investment objectives?
  • What are some strategies for boosting the cyber capabilities of particular cybersecurity providers and defense companies?

Apart from its good performance in the stock market, the cybersecurity segment is an excellent option to make a brilliant career. If you are in the tech field and looking to explore  your career here, you can begin your career in cybersecurity. In the next section, we will discuss cybersecurity's scope and earning potential. 

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Career Scope in Cybersecurity - A Glimpse

Making your career in cybersecurity creates opportunities to follow your passion within the world of information security and build a career path that is right for you. As per the report by the US Bureau of Labor Statistics, there is a 33 percent growth in the number of cybersecurity openings during 2020-2030. Apart from its growth potential, the Cyber Security Salary range is excellent.

As the importance of cybersecurity, more specialized roles are emerging. Cybersecurity jobs vary from entry-level to executive management and everything in between. Following are the five common career paths within this high-demand field – 

  • Network Engineer 
  • Security Architect
  • Information Security Analyst
  • Chief Information Security Office 
  • Ethical Hacker

Conclusion

In the next four to five years, it is predicted that businesses and the government will invest a total of about $100 million in the cybersecurity industry. Security for the Internet of Things (IoT) is predicted to increase this value by $29 billion. You can take advantage of the opportunity by investing in the top cybersecurity stock and by pursuing a professional Cybersecurity Training Course

The cheat sheet on  the top 10 cyber security stocks is crafted so that you don't need to be an expert. Even if you don't already own NASDAQ stock, reading through this list and the descriptions of the individual companies will give you a good idea of what to watch out for when investing in cybersecurity stocks.

Furthermore, you are already familiar with the names of the businesses you should focus on. If you have realized the cybersecurity domain importance and want to engage it in more ways than just as a trader,  consider upgrading your cybersecurity skills with a Cybersecurity Training Program to enter this field.

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We hope you found this blog informative and helpful. If you have any doubts or confusion, you can reach us here.

Frequently Asked Questions

Q1. Are cybersecurity stocks a good investment? 

Ans:- The global cybersecurity industry is anticipated to grow at a compound annual growth rate of 13.4%, reaching $376 billion by the end of 2029, according to Fortune Business Insights. Some cybersecurity stocks continue to trade at exorbitant prices. Others don't always turn a profit.

Q2. What is the future of cybersecurity stocks?

Ans:-  When it comes to the future scope in Cybersecurity, Gartner anticipates an 11% increase in cybersecurity investment in both 2022 and 2023. In a recent analysis, Bank of America stated that cybersecurity stocks that provide services through cloud computing platforms will be in a better position. 

Q3. Why cybersecurity stocks are beating the market?

Ans:-  Even as other sectors of the computer industry are suffering from economic concerns, demand for cybersecurity goods and services is maintaining steady. Compared to betting on the overall market, investors who invested in cyber-focused ETFs have lost less money this year.

Q4. What cyber threats are currently the greatest in 2022?

Ans:-  Businesses of all sizes face a serious cyber threat from ransomware, which is predicted to rank among the biggest threats to cyber security in 2022. Attacks using ransomware work by infecting your network and encrypting your data and computer systems until you pay the hacker a ransom.

Q5. How much money do I need to put into cybersecurity?

Ans:-  Generally speaking, experts advise allocating 10% to 15% of your IT budget to cybersecurity and data breach protection.

Q6. What makes cyber security so well-liked?

Ans:-  Cybersecurity is crucial since it guards against theft and destruction to many types of data. This covers delicate information, personally identifiable information (PII), protected health information (PHI), personal data, data pertaining to intellectual property, and information systems used by the government and business.

Q7. What job opportunities exist in cyber security?

Ans:-  When you first enter the field of cybersecurity, you can work as a help desk technician, network administrator, or software developer. After obtaining some IT experience, many cybersecurity experts start out as junior information security analysts.

Q8. Is cyber security a lucrative field?

Ans:-  Many cybersecurity positions pay more than other computer occupations, even though more seasoned experts are likely to receive greater earnings. According to data from the U.S. Department of Labor Statistics, an information security analyst (usually an entry-level cybersecurity professional) made a median pay of $102,600 in 2021.

Q9. Is studying cyber security challenging?

Ans:- Although learning cybersecurity can be difficult, it doesn't have to be, especially if you have a strong interest in technology. Develop an interest in the technologies you use, and you could discover that difficult abilities become simpler.

Q10. Do analysts for cybersecurity programs?

Ans:-  Most entry-level cybersecurity positions don't require coding knowledge. However, coding may be required to grow in the field of cybersecurity specialists looking for mid- or upper-level positions.


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    Puja Bhardwaj

    This is Puja Bhardwaj, a creative writer, and content strategist. I’m passionate about storytelling through written and visual content, and market that content for cultivating a committed audience. I come to the table with 5 years of content writing and marketing experience (in the agency, in-house, and freelance writing).


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