2 Cybersecurity Stocks to Buy and Hold for 2025

Industry Overview - Cybersecurity is experiencing significant growth, with attacks increasing at a double-digit pace and expected to accelerate in 2024, further driven by advancements in AI in 2025 [1] - The demand for cybersecurity products from leading firms like Fortinet and Datadog is anticipated to rise as threats evolve [1] Fortinet Analysis - Fortinet is expanding its business with a sustained double-digit growth rate, outperforming analysts' expectations and raising guidance for 2024, indicating continued strength into 2025 [1] - The forecast for Fortinet in 2025 includes a revenue growth of 12% and an expansion of profit margins [1] - The company's cash flow and balance sheet health have improved, allowing for share repurchases, with a new authorization of $2 billion, representing about 2.6% of its market cap [3] - Analysts have a 12-month price forecast for Fortinet at $79.52, indicating a potential downside of 15.59%, with a high forecast of $111.00 and a low of $64.00 [2] Datadog Analysis - Datadog is positioned as a comprehensive cloud-based monitoring solution, appealing to small and medium-sized businesses transitioning to the cloud [5] - The company is expected to achieve sustained revenue growth in the mid-20% range for 2024, driven by increased adoption from larger clients and strategic partnerships, such as with Oracle [6] - Datadog's 12-month stock price forecast is $150.96, suggesting a 19.73% upside, with a high forecast of $165.00 and a low of $133.00 [6] - The company's balance sheet has improved significantly, with a 30% increase in equity over the last year and total liabilities being less than 1X equity [7] Analyst Sentiment - Analysts have responded positively to both Fortinet and Datadog's recent results, with upgrades and price target increases for both companies [4][8] - Despite Datadog's current "Moderate Buy" rating, some top analysts believe there are better investment opportunities available [10]