According to a study from Chubb, senior leaders recently identified computer and technologies risk as the main threats to company growth. More than 40 % of professional respondents said that the monitoring of cyber threats is a crucial part of their business.
That percentage is likely going to rise as the security landscape becomes more complicated. There are a number of factors 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 protection rules.
The best security stocks have the best chances to prosper in this fast-changing setting. Proven cybersecurity providers may get pricing authority and become of value to their customers as a result.
Consider adding intended security exposure to your portfolio to take advantage of these trends. Read on to learn about six security companies that have the potential to grow in 2025 and above.
Methodology Used In These Cybersecurity Stock Picks
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 account:
- Companies listed on foreign markets
- Companies with fewer than 10 addressing experts
- companies with consensus rate targets that are not more than the current trading volume of at least 10 % higher.
The top three cybersecurity stocks were dropped, and the remaining nine were ordered by free cash flow (FCF ) per share, which is the highest to lowest. Operating cash flow, less funds expenses or expenditure, was calculated from each bank’s most recent year-end economic releases. Capital costs included capitalizing program expenses as well as property purchases.
6 Best Security Companies to Get In 2025
Six security companies identified in the table below are poised for development 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 options. 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 safety 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
The viability of Akamai for boosting sales and earnings has been demonstrated. The organization has the highest and most constant operating margin among the companies on this list, despite the company’s selling trend than its earnings.
In terms of safety options and sky technology, Akamai is now expanding. In its most recent earnings launch, the company reported 17 % quarter-over-quarter sales 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 reveal:$ 3.81
- Forward Dau: 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
Zscaler sells to customers a sky safety platform on a subscription basis. Clients operate in various sectors, including household and personal items, banks, transportation, 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, selling 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 FCF 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” powerful 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 discuss:$ 2.85
- Forward Dau: 32.75
- 1-Year stock price change: 17.56 %
- Cost specific 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 solutions. The business is best known for its gate service, which enables logged-in users to access various programs with one login. More than half of the Fortune 100 companies and countless different businesses are clients.
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 15 % sales growth and a FCF margin of 25 % for 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 recent earnings telephone, the company the breach was no more affecting results quantitatively.
As a potential investor, you can assess Okta’s breach history in two ways. You can assume Okta could repeat its mistakes, which would be bad 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 share:$ 1.76
- Forward PE: 76.56
- 1-Year stock price change: -14.86 %
- Price target upside: 12.24 %
- Year-over-year revenue growth: 30.77 %
- Expected revenue growth next year: 20.64 %
- Expected EPS growth next year: 19.91 %
Datadog Business Overview
Datadog offers technology monitoring and reporting services. Customers use the platform to manage, troubleshoot and optimize 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 long-term 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 an AI-based security solution for identifying, investigating, and responding to 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. As the AI revolution progresses, according to Ives, Elastic will continue to have 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 generated GAAP net income of$ 46.9 million over the past 12 months after generating 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 for 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, geopolitical trends and technology may cause negative effects on cybersecurity stocks. 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.