Source : showbizcast

In the rapidly evolving digital landscape, the importance of cybersecurity has never been more pronounced. As organizations worldwide grapple with the escalating threats of cyber attacks, the spotlight is increasingly turning toward cybersecurity stocks.

With dozens of players vying for dominance, navigating the cybersecurity landscape can be daunting. This comprehensive guide delves into the cybersecurity stocks by market capitalization in 2024, offering a clear picture of the industry's power players.

Cybersecurity Stocks Ranked By Market Cap

Palo Alto Networks (PANW)$107.27 Billion
CrowdStrike (CRWD)$72.11 Billion
Fortinet (FTNT)$50.76 Billion
Datadog (DDOG)$40.27 Billion
Zscaler (ZS)$35.80 Billion
Cloudflare (NET)$27.64 Billion
Splunk (SPLK)$25.82 Billion
Akamai (AKAM)$18.66 Billion
Check Point Software (CHKP)$18.40 Billion
Leidos (LDOS)$15.14 Billion
Gen Digital (GEN)$15.05 Billion
Okta (OKTA)$14.06 Billion
F5 Networks (FFIV)$10.82 Billion
CyberArk (CYBR)$9.67 Billion
SentinelOne (S)$7.72 Billion
Trend Micro (4704.T)$7.56 Billion
Qualys (QLYS)$7.22 Billion
Varonis (VRNS)$4.92 Billion
Rapid7 (RPD)$3.39 Billion
PagerDuty (PD)$2.23 Billion

Palo Alto Networks (PANW)

Source : companiesmarketcap

Palo Alto Networks (PANW) stands tall as a dominant force in the ever-evolving cybersecurity realm. From next-generation firewalls and cloud-based security services to AI-powered threat detection and endpoint protection, PANW has you covered at every layer of your digital infrastructure.

As of 2023, its price-to-earnings (P/E) ratio sits at around 189.02. This premium valuation can be attributed to its high growth potential, consistent financial performance, and leadership position in a booming market.

  • Market Capitalization: $107.27 Billion

CrowdStrike (CRWD)

Source : companiesmarketcap

The best Cybersecurity stocks include CrowdStrike (CRWD). The company has been captivating investors with its innovative cloud-based security platform utilizing artificial intelligence and machine learning for real-time actions.

The company boasts a diverse and impressive client list, including Fortune 500 companies, government agencies, and educational institutions. This broad customer base indicates industry-wide trust in CrowdStrike's capabilities.

  • Market Capitalization: $72.11 Billion

Fortinet (FTNT)

Source : companiesmarketcap

Counted as one of the top cybersecurity stocks, Fortinet (FTNT) is a leading cybersecurity company that develops and sells network security solutions, such as firewalls, intrusion detection and prevention systems (IDS/IPS), and virtual private networks (VPNs). It has has over 10,000 employees worldwide.

Fortinet's compound EPS growth of 60% per year over five years is indeed impressive, indicating significant profitability and financial strength. While Fortinet's current PE ratio of 45.91 is higher than some of its competitors.

  • Market Capitalization: $50.76 Billion

Datadog (DDOG)

Source : companiesmarketcap

Datadog (DDOG) shines brightly as a top contender in the cybersecurity realm, offering cloud-based monitoring and security solutions for modern application environments. Its comprehensive platform spans infrastructure, application performance, and security logs.

Datadog's centralized log management platform provides deep insights into application and infrastructure logs, aiding in anomaly detection and troubleshooting. It helps businesses comply with industry regulations and internal security policies through automated reporting and audit trails.

  • Market Capitalization: $40.27 Billion

Zscaler (ZS)

Source : companiesmarketcap

What makes Zscaler one of the best Cybersecurity companies? Its focus on protecting enterprises from advanced threats through its unique Zero Trust Security platform earns it a spot among the top Cybersecurity companies to consider.

Unlike traditional perimeter-based security, Zscaler's Zero Trust Security platform assumes no trust within or outside the network, continuously verifying user and device identities before granting access to applications and data. Their cloud-based solution eliminates the need for on-premises security infrastructure.

  • Market Capitalization: $35.80 Billion

Cloudflare (NET)

Source : companiesmarketcap

Cloudflare powers over 7.5 million websites, including 30% of the Fortune 1,000 and 3,280 of the top 10,000 websites globally. It faces strong competition from established players like Palo Alto Networks and Fortinet.

Despite being a high-growth company, Cloudflare has achieved positive GAAP net income in recent quarters, demonstrating its ability to balance growth with profitability. It has seen consistently high growth, increasing 32% year-over-year in Q3 2023.

  • Market Capitalization: $27.64 Billion

Splunk (SPLK)

Source : companiesmarketcap

Known for its data platform that powers log-based security analytics, Splunk (SPLK) occupies a unique position in the cybersecurity landscape. Its ability to ingest and analyze massive amounts of data from diverse sources makes it a valuable tool for threat detection, investigation, and response.

Splunk's current PE ratio of 34.8 falls within the range of its peers, suggesting a somewhat conservative valuation compared to its high growth potential. It also beat analyst expectations for both revenue and earnings in its third quarter of 2023.

  • Market Capitalization: $25.82 Billion

Akamai (AKAM)

Source : companiesmarketcap

From content delivery networks (CDNs) and web security solutions to cloud security and threat intelligence, Akamai's comprehensive offerings make it one of the top cybersecurity stocks to buy. Its Intelligent Edge Platform is consistently ranked among the top CDNs in the world.

Akamai boasts a consistent history of profitability and revenue growth, with a 5-year CAGR of 16.4% for revenue and 13.3% year-over-year growth in its first quarter of 2023.

  • Market Capitalization: $18.66 Billion

Check Point Software (CHKP)

Source : companiesmarketcap

The company offers a comprehensive suite of security solutions, encompassing network, cloud, mobile, and endpoint protection. This diversification caters to evolving cyber threats and customer needs.

Check Point has demonstrated a track record of consistent revenue and earnings growth, outpacing the overall cybersecurity market. This consistent performance instills investor confidence. If talked in numbers, it has a 4.67% 5-year CAGR.

  • Market Capitalization: $18.40 Billion

Leidos (LDOS)

Source : companiesmarketcap

Leidos boasts extensive experience and deep-rooted relationships with U.S. government agencies, granting it preferential access to lucrative cybersecurity contracts. Its strategic acquisitions, like the recent purchase of CenturyLink's government IT services division, expand its cybersecurity capabilities and market reach.

While not as explosive as Fortinet, Leidos exhibits consistent revenue and earnings growth, with a 5-year CAGR of 12.7% for earnings and 9.2% year-over-year growth in its first quarter of 2023.

  • Market Capitalization: $15.14 Billion

Gen Digital (GEN)

Source : companiesmarketcap

Gen was born from the 2022 merger of Norton LifeLock and Avast. The company boasts a massive user base of over 500 million, solidifying its position as a global leader in consumer cybersecurity solutions.

Its current PE ratio of 10.54 is significantly lower than some competitors, suggesting potential room for future valuation expansion. The company's stock recently achieved a rising Relative Strength (RS) Rating of 71, suggesting technical momentum and possible further gains.

  • Market Capitalization: $15.05 Billion

Okta (OKTA)

Source : companiesmarketcap

Okta (OKTA) is rapidly carving its niche in the cybersecurity landscape, specifically focusing on Identity and Access Management (IAM) solutions.  It offers cloud-based solutions that help organizations secure access to applications and data for employees, partners, and customers.

The stock reported a 21% YoY increase to $584 million in the Q3 FY24 financial results showing positive revenue growth. Its subscription revenue also hiked to 22% Year-over-Year increase to $569 million

  • Market Capitalization: $14.06 Billion

F5 Networks (FFIV)

Source : companiesmarketcap

While not solely focused on cybersecurity, F5 Networks (FFIV)'s offerings heavily lean towards securing and optimizing application experiences across various cloud environments. It benefits from a subscription-based model, providing predictable revenue streams and consistent visibility into future performance.

F5 boasts a strong track record in its core application delivery controller (ADC) market, holding a 40% market share. This translates to a solid foundation for further expansion within the broader cybersecurity space.

  • Market Capitalization: $10.82 Billion

CyberArk (CYBR)

Source : companiesmarketcap

CyberArk protects the most sensitive accounts and data within organizations, making it a critical layer of defense against privileged access abuses and cyberattacks. Hybrid and cloud environments require specialized security solutions, which benefit CyberArk's cloud-based offerings.

Its revenue has consistently grown over 20% year-over-year, and analysts expect continued momentum with a projected 2024 growth of 23%. The company possesses robust cash flow and minimal debt, providing a strong financial foundation.

  • Market Capitalization: $9.67 Billion

SentinelOne (S)

Source : companiesmarketcap

Want to invest in AI-powered stock with cybersecurity facilities? SentinelOne's Singularity XDR platform utilizes advanced AI and machine learning to prevent, detect, and respond to cyberattacks across endpoints, cloud workloads, and identities.

The company has demonstrated impressive revenue growth, exceeding analyst expectations and boasting a healthy gross margin. Additionally, their ARR (Annual Recurring Revenue) continues to climb, showcasing a strong subscription model.

  • Market Capitalization: $7.72 Billion

Trend Micro (4704.T)

Source : companiesmarketcap

This company is consistently recognized as a Leader in Gartner's Endpoint Security Magic Quadrant for 20+ years. It has high scores in all use cases of Gartner's Critical Capabilities Report for Endpoint Protection Platforms (EPP).

The company offers a comprehensive suite of security solutions for businesses of all sizes, including endpoint protection, network security, cloud security, and security for mobile devices. It actively embraces AI and machine learning in its products, staying ahead of the evolving cyber threat landscape.

  • Market Capitalization: $7.56 Billion

Qualys (QLYS)

Source : companiesmarketcap

The company boasts over 10,000 subscription customers worldwide, including 70% of the Forbes Global 50 and 53% of the Global 500. This prestigious clientele signifies robust trust and market penetration.

Qualys demonstrates consistent growth, with 19% revenue growth in 2022 and 13% in Q3 2023. Its EBITDA margins have also improved significantly, highlighting strong profitability. Management expects full-year 2023 margins to be in the mid-40s, reflecting efficient operations.

  • Market Capitalization: $7.22 Billion

Varonis (VRNS)

Source : companiesmarketcap

 Varonis actively expands its reach, integrating with Salesforce Shield for advanced threat detection, entering new markets like Canada and the UK, and actively repurchasing shares. Its collaboration with Microsoft strengthens Varonis' presence within the Microsoft 365 ecosystem.

Despite a slight dip in Q3 2023 revenue, Varonis boasts impressive subscription growth. Annual Recurring Revenue (ARR) climbed 16% year-over-year to $517.5 million, showcasing sustainable income potential.

  • Market Capitalization: $4.92 Billion

Rapid7 (RPD)

Source : companiesmarketcap

Rapid7 is a cybersecurity company that provides cloud risk management and threat detection solutions. Its products help businesses identify, prevent, and respond to security threats.

The company's stock has been volatile in recent months, but it has trended upward overall in the past year. The company's stock price has been on a roller coaster ride in the past year, reaching a high of $60.15 in December 2023 and a low of $32.97 in June 2023.

  • Market Capitalization: $3.39 Billion

PagerDuty (PD)

Source : companiesmarketcap

As one of the growing small-cap cyber security stocks, PagerDuty (PD) is a leading incident response and IT operations management platform that helps organizations identify and resolve critical issues before they escalate. It's considered a top stock in the cybersecurity sector due to its focus on proactive problem-solving and automation.

PD announced partnerships with leading cloud providers like Amazon Web Services (AWS) and Microsoft Azure to expand its reach and integrate its platform with their cloud offerings. This opens up new market opportunities for PD.

  • Market Capitalization: $2.23 Billion