The 3 Best Cybersecurity Stocks to Buy in July 2024

Core Insights - The surge in cyberattacks highlights the increasing relevance of investing in cybersecurity stocks, particularly following significant breaches like that of UnitedHealth [1][2] - Major cybersecurity firms are expected to benefit from the heightened demand for robust security solutions, driven by recent high-profile incidents [2] Company Summaries Okta (OKTA) - Okta specializes in cloud software for user authentication, addressing 80% of data breaches related to compromised identities [3] - The company has consistently beaten earnings estimates for 16 consecutive quarters, with Q1 2025 sales growing 19.1% year-over-year to $617 million and EPS of 65 cents exceeding estimates by 10 cents [3][4] - Projected operating margins for Q2 are between 19$1.2 billion [4] Fortinet (FTNT) - Fortinet is a leading player in cybersecurity, focusing on Network Security, Secure Access Service Edge (SASE), and Security Operations, with a strong position in firewall technology [6] - The company has increased free cash flows by over 22% in the past five years, with stock value rising over 289% and 21% in the last three years [6] - Expected revenue for 2023 is $5.80 billion, a 9.4$6.55 billion in 2025 [6] Cloudflare (NET) - Cloudflare utilizes advanced AI and machine learning for real-time threat detection, positioning itself for long-term growth as businesses migrate to cloud infrastructures [7] - Q1 revenue increased by 30% year-over-year to $378.6 million, with non-GAAP EPS of 16 cents beating estimates by 3 cents; the company has consistently met or exceeded earnings expectations since Q3 2019 [7][8] - Projected Q2 revenue is between$393.5 million and $394.5 million, with analysts expecting an 11% upside in NET stock, rating it as a Moderate Buy [8]