Top Cybersecurity Stocks to Watch in 2025
Market Overview
According to Gartner, global cybersecurity spending is projected to hit $248 billion by 2026, driven by cloud migration and AI-powered threats.
Leaders & Challengers
- CrowdStrike (CRWD) – Endpoint leader with 35% YoY ARR growth; expanding into identity security.
- Palo Alto Networks (PANW) – Broad platform strategy; free cash flow margin above 30%.
- Zscaler (ZS) – Zero-trust pioneer; FedRAMP High certification opens federal pipeline.
- Fortinet (FTNT) – Strong hardware + services mix; OT security gaining momentum.
- SentinelOne (S) – AI-driven XDR; targeting profitability in FY2026.
Valuation Snapshot
Code:
Ticker | FY25 EV/Sales | FY25 EV/EBITDA | Comment
CRWD | 14.2x | 50x | Premium justified by growth
PANW | 9.8x | 35x | Platform cross-sell upside
ZS | 11.5x | 45x | Zero-trust tailwinds
FTNT | 7.2x | 28x | Margin expansion story
S | 6.5x | N/A | Break-even expected 2026
[size=110][b]Risks[/b][/size]
[list=1]
[*]Macro IT-spend slowdown
[*]Intensifying competition from Microsoft Defender
[*]Valuation compression if rates rise further
[/list]
[size=110][b]SEO Keywords[/b][/size]
best cybersecurity stocks 2025, CrowdStrike stock analysis, Palo Alto Networks research, Zscaler zero trust, Fortinet OT security, SentinelOne XDR
[size=110][b]Conclusion[/b][/size]
Cybersecurity remains a secular growth theme. Investors should balance high-growth names like CrowdStrike with cash-generative incumbents such as Fortinet to manage risk while capturing upside.