The 7 Best Cybersecurity Stocks to Buy in June 2024

Industry Overview - Cybersecurity stocks are considered strong long-term investments due to the increasing threat of cyber attacks, with global cybercrime damage costs projected to reach $10.5 trillion annually by 2025, up from $3 trillion in 2015 [1] - A significant portion of small to medium businesses (65%) do not perceive themselves as targets for cyberattacks, highlighting a gap in awareness [1] - The global cost of cybercrime exceeded $8 trillion last year and is expected to surpass $11 trillion by the end of 2023, with ransomware attacks being 57 times more destructive in 2021 compared to 2015 [1] Company Summaries Cloudflare (NET) - Cloudflare operates a global cloud platform offering network services, with around 30% of the 10,000 most popular websites utilizing its services [2] - For 2024, Cloudflare forecasts revenue between $1.648 billion and $1.652 billion, representing a year-over-year growth of 22-24% [3] - The company has a quarterly revenue growth of 30.5% year-over-year, with an analyst target price of $90.33 [3] Fortinet (FTNT) - Fortinet has a market cap of approximately $54 billion and is expected to grow revenue by about 12.85% and EPS by 11.11% in 2024 [4] - Projected revenue for Q1 2024 is between $1.30 billion and $1.36 billion, with billings expected between $1.39 billion and $1.45 billion [4] - Fortinet's quarterly earnings growth year-over-year is 25.8%, with a trailing P/E ratio of 38.8 [5] Zscaler (ZS) - Zscaler serves many Fortune 500 and Fortune 1000 companies, with a strong quarterly revenue growth of 32.1% year-over-year [6][7] - The average target price for Zscaler is $236.14, indicating significant upside potential [7] Rapid7 (RPD) - Rapid7 specializes in vulnerability management and reported a quarterly revenue growth of 12% year-over-year [8] - The company has a positive operating margin of 5.06% and an EBITDA of $52.858 million [8] - Current market valuation suggests that negative sentiment may already be reflected in the stock price, presenting a potential buying opportunity [8] Tenable (TENB) - Tenable is known for its Nessus vulnerability scanner and reported a quarterly revenue growth of 14.4% year-over-year [9][10] - The company exceeded analysts' expectations with earnings per share of $0.25 and revenue of $215.96 million for the quarter [10] CyberArk (CYBR) - CyberArk specializes in identity security, reporting a 406% increase in EPS and a 32% year-over-year revenue growth in Q4 [11] - The company has a market capitalization of over $10 billion, with 30 out of 31 analysts rating the stock as a "Buy" or "Strong Buy" [11] Varonis Systems (VRNS) - Varonis focuses on data security and reported a 6.2% year-over-year revenue growth [12] - The company expects to achieve an ARR between $617 million and $625 million for 2024, reflecting a 14% to 15% year-over-year growth [12]