3 Cybersecurity Stocks to Buy That Benefit From Malware Attacks
Over the last decade, the world has seen a dramatic increase in the frequency and sophistication of malware attacks. This makes the case for the best cybersecurity stocks to buy in 2024.
As cyber criminals develop increasingly robust methods to infiltrate networks and steal valuable data, businesses of all sizes across industries are ramping up their cybersecurity investments. This surge in demand drives significant growth in the sector, making it an attractive investment idea. Furthermore, the industry is still in its infancy, which provides fertile ground for long-term upside. As the battle against cyber threats intensifies, investors can capitalize on this burgeoning sector.
Now, let’s discover the top cybersecurity stocks to buy in May 2024.
Fortinet (FTNT)
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Fortinet (NASDAQ:FTNT) stands out as a premiere cybersecurity stock to buy in 2024. The company, founded over two decades ago, specializes in firewalls, threat detection and endpoint security.
Fortinet’s flagship product, the FortiGate firewall, is renowned for its high performance and integrated security capabilities. It provides comprehensive protection against various cybersecurity threats, making it ideal for medium to large corporations. This, coupled with their expanding portfolio, including cloud security, endpoint protection and secure networking, has solidified them as a leader in the space. In FY23, the company delivered record revenue, earnings and FCF from operations. They also hit a very exciting milestone, surpassing $1 billion in net earnings for the first time.
Qualys (QLYS)
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Qualys (NASDAQ:QLYS) is a smaller cybersecurity stock with tremendous potential for outperformance. The company specializes in cloud-based security solutions and has seen an explosion in profitability since the pandemic.
Qualys cloud-based platform is known for its exceptional performance and reliability. The Qualys Enterprise TruRisk platform is one of the market’s most recognized and respected vulnerability management solutions. It provides a risk-based approach to accessing and managing real-time threats while consolidating point solutions for de-risk businesses. Furthermore, the platform also leverages AI for threat detection and compliance monitoring.
In the 2023 fiscal year, Qualys grew revenue by 13% YOY to $553 million. EPS swelled 47% YOY to $4.03 per share, with FCF hitting a record $236 million. Their commitment to continuous improvement and leadership in vulnerability management solutions remains steadfast. This is why they have maintained steady revenue growth and profits, making them a compelling choice for investors seeking exposure to the cybersecurity sector.
CACI International (CACI)
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CACI International (NYSE:CACI) is an under-the-radar company presenting a compelling case as one of the top cybersecurity stocks. They primarily provide software and cybersecurity solutions for Intelligence, Defense and Federal Civilian customers.
CACI International’s expertise in cybersecurity signals intelligence and electronic warfare makes it a key player in the defense against malware attacks. Their software solutions are designed to protect critical infrastructure and sensitive information from buyer threats, making them a valuable asset in threat detection.
The company’s long-term contracts with various U.S. government agencies ensure a steady and predictable revenue stream, bolstering investor confidence. In their latest quarterly financial results, revenue increased 11% YOY to $1.94 billion. Net income rose 14.5% to $115.4 million, or $5.13 per share. Additionally, adjusted EBITDA margin increased by 200 bps to 11.3%. With management raising their FY24 guidance for the third time, CACI stock could set up for the next leg higher in 2024.
On the date of publication, Terel Miles did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
