Investing in cybersecurity stocks

Data breaches and hacks can impact the sensitive information of businesses, organizations and individual people. Cybersecurity helps prevent these cyberattacks, and the demand for cybersecurity is expected to soar in the coming years.

What are cybersecurity stocks?

Cybersecurity stocks include companies that offer cybersecurity consultation for businesses and organizations. It also covers cyber recovery solutions if you’ve been a victim of a cyberattack.

Cybersecurity is the art of defending networks, systems and data from digital attacks. These cyberattacks attempt to access information without authorization. They are designed to steal or destroy data, extort money or for other criminal use.

Why invest in cybersecurity stocks?

Cybercrime costs global economies about $600 billion every year, according to the Center for Strategic and International Studies. That’s an increase from the estimated worldwide losses of $445 billion in 2014 and isn’t predicted to decline.

The rise of cyberattacks has prompted public and private organizations to look for solutions to protect themselves from these dangerous and costly breaches. The global cybersecurity market is predicted to grow from $149 billion to $208 billion by 2023, according to a Cybersecurity Global Market Report.

With the growth of cybercrime, firms and governments will turn to cybersecurity companies for help. And since more than half the world is now online and the demand for cybersecurity is more pressing than ever, it might be a good time to invest in cybersecurity stocks.

Risks of investing in cybersecurity

Cybersecurity is a newer industry that got its start with antivirus software and firewalls in the late 80s. Unfortunately, many cybersecurity stocks are based on private companies that are fairly new. And since tech moves fast in the cyber world, smaller, newer companies may struggle to keep up or incur a lot of debt.

Investors may also have trouble gauging winners in the cybersecurity space because the industry is based on hindsight. For example, it is only after a cyber attack that you can definitively evaluate companies and how effective they were in preventing the attack.

The cybersecurity sphere can be volatile as investors and companies are finding their footing.

Cybersecurity stocks

Cybersecurity stocks cover companies that bolster cyber defenses through various services, including hardware and cloud-based software. Select a company to learn more about what they do and how their stock performs, including market capitalization, the price-to-earnings (P/E) ratio, price/earnings-to-growth (PEG) ratio and dividend yield. While this list includes a selection of the most well-known and popular stocks, it doesn't include every stock available.

• Cloudflare (NET.US)

  Company summary

  CloudFlare, Inc. operates as a cloud services provider that delivers a range of services to businesses worldwide. The company offers an integrated cloud-based security solution to secure a range of combination of platforms, including public cloud, private cloud, on-premise, software-as-a-service applications, and IoT devices. Its security products comprise cloud firewall, bot management, distributed denial of service, IoT, SSL/TLS, secure origin connection, and rate limiting products. The company also offers performance solutions, which include content delivery and intelligent routing, as well as content, mobile, and image optimization solutions. In addition, it provides reliability solutions comprising load balancing, anycast network, virtual backbone, DNS, DNS resolver, online, and virtual waiting room solutions. Further, the company offers Cloudflare internal infrastructure solutions, including on-ramps, which connect users, devices, or locations to its network; and filters, which are the products that protect, inspect, and privilege data. Additionally, it provides developer-based solutions, such as serverless computing/programmable network, website development, domain registration, Cloudflare apps, analytics, and data localization management; Consumer DNS Resolver, a consumer app to browse the Internet; and Consumer VPN for consumers to secure and accelerate traffic on mobile devices. The company serves customers in the technology, healthcare, financial services, consumer and retail, and non-profit industries, as well as government. CloudFlare, Inc. was incorporated in 2009 and is headquartered in San Francisco, California.

  Historical performance

  Stock information

  • Market capitalization: $14974278656
  • PEG ratio: 66.2242
  • Dividend yield: 0%

  Get more detailed information and learn how to buy NET.US stock

• Crowdstrike (CRWD.US)

  Company summary

  CrowdStrike Holdings, Inc. provides cloud-delivered protection across endpoints and cloud workloads, identity, and data. It offers threat intelligence, managed security services, IT operations management, threat hunting, Zero Trust identity protection, and log management. The company primarily sells subscriptions to its Falcon platform and cloud modules through its direct sales team that leverages its network of channel partners. It serves customers worldwide. The company was incorporated in 2011 and is based in Austin, Texas.

  Historical performance

  Stock information

  • Market capitalization: $42930999296
  • PEG ratio: 3.4239
  • Dividend yield: 0%

  Get more detailed information and learn how to buy CRWD.US stock

• Fireeye (FEYE.US)

  Company summary

  FireEye, Inc. provides intelligence-based cybersecurity solutions to prepare for, prevent, investigate, respond to, and remediate cyber-attacks in organizations. Its FireEye products include network, email, endpoint, and cloud security control products to detect and prevent threats; Dynamic Threat Intelligence Cloud, a bi-directional cloud-based service; Helix Security Operations Platform, a cloud-hosted security operations platform; Cloudvisory cloud security products; and customer support and maintenance services. The company also offers Mandiant Threat Intelligence that provides access to threat data and indicators; Mandiant Security Validation allows organizations to measure, manage, and communicate the efficiency of their security controls; Mandiant Defense, a cloud-native extended detection and response solution; and managed detection and response, and managed validation services. In addition, it provides incident response, security assessment, security transformation, cybersecurity training, and expertise-on-demand services. The company serves telecommunications providers, financial services entities, software, technology and Internet companies, stock exchanges, electrical grid operators, networking vendors, oil and gas companies, healthcare and pharmaceutical companies, and governmental agencies. It offers its products and services through distributors, resellers, and strategic partners in the United States, Europe, the Middle East, Africa, the Asia Pacific, and Japan. The company was formerly known as NetForts, Inc. and changed its name to FireEye, Inc. in September 2005. FireEye, Inc. was founded in 2004 and is headquartered in Milpitas, California.

  Historical performance

  Stock information

  • Market capitalization: $4130845952
  • Dividend yield: N/A%

  Get more detailed information and learn how to buy FEYE.US stock

• Fortinet (FTNT.US)

  Company summary

  Fortinet, Inc. provides broad, integrated, and automated cybersecurity solutions in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. It offers FortiGate hardware and software licenses that provide various security and networking functions, including firewall, intrusion prevention, anti-malware, virtual private network, application control, web filtering, anti-spam, and wide area network acceleration. The company also provides FortiSwitch product family that offers secure switching solutions for connecting customers their end devices; FortiAP product family, which provides secure wireless networking solutions; FortiExtender, a hardware appliance; FortiAnalyzer product family, which offers centralized network logging, analyzing, and reporting solutions; and FortiManager product family that provides central and scalable management solution for its FortiGate products. It offers FortiWeb product family provides web application firewall solutions; FortiMail product family that secure email gateway solutions; FortiSandbox technology that delivers proactive detection and mitigation services; FortiClient that provides endpoint protection with pattern-based anti-malware, behavior-based exploit protection, web-filtering, and an application firewall; FortiToken and FortiAuthenticator product families for multi-factor authentication to safeguard systems, assets, and data; and FortiEDR/XDR, an endpoint protection solution that provides both comprehensive machine-learning anti-malware execution and real-time post-infection protection. It provides security subscription, technical support, professional, and training services. It sells its security solutions to channel partners and directly to various customers in telecommunications, technology, government, financial services, education, retail, manufacturing, and healthcare industries. It has strategic alliance with Linksys. Fortinet, Inc. was incorporated in 2000 and is headquartered in Sunnyvale, California.

  Historical performance

  Stock information

  • Market capitalization: $45413146624
  • P/E ratio: 70.725
  • PEG ratio: 2.485
  • Dividend yield: 0%

  Get more detailed information and learn how to buy FTNT.US stock

• Palo Alto Networks (PANW.US)

  Company summary

  Palo Alto Networks, Inc. provides cybersecurity solutions worldwide. The company offers firewall appliances and software; Panorama, a security management solution for the control of firewall appliances and software deployed on an end-customer's network and instances in public or private cloud environments, as a virtual or a physical appliance; and virtual system upgrades, which are available as extensions to the virtual system capacity that ships with physical appliances. It also provides subscription services covering the areas of threat prevention, malware and persistent threat, uniform resource locator filtering, laptop and mobile device protection, and firewall; and DNS security, Internet of Things security, SaaS security API, and SaaS security inline, as well as threat intelligence, and data loss prevention. In addition, the company offers cloud security, secure access, security analytics and automation, and threat intelligence and cyber security consulting; professional services, including architecture design and planning, implementation, configuration, and firewall migration; education services, such as certifications, as well as online and in-classroom training; and support services. Palo Alto Networks, Inc. sells its products and services through its channel partners, as well as directly to medium to large enterprises, service providers, and government entities operating in various industries, including education, energy, financial services, government entities, healthcare, Internet and media, manufacturing, public sector, and telecommunications. The company was incorporated in 2005 and is headquartered in Santa Clara, California.

  Historical performance

  Stock information

  • Market capitalization: $50984591360
  • PEG ratio: 1.695
  • Dividend yield: 0%

  Get more detailed information and learn how to buy PANW.US stock

• Cyberark Software (CYBR.US)

  Company summary

  CyberArk Software Ltd., together with its subsidiaries, develops, markets, and sales software-based security solutions and services in the United States, Europe, the Middle East, Africa, and internationally. Its solutions include Privileged Access Manager that offers risk-based credential security and session management to protect against attacks involving privileged access; Vendor Privileged Access Manager combines Privileged Access Manager and Remote Access to provide fast, easy, and secure privileged access to third-party vendors; Endpoint Privilege Manager, a SaaS solution that secures privileges on the endpoint; and Cloud Entitlements Manager, a SaaS solution, which reduces risk that arises from excessive privileges by implementing least privilege across cloud environments. The company also offers robust Identity and Access Management as a Services, such as workforce identity, which offers adaptive multi-factor authentication (MFA), single sign-on, secure Web sessions, application gateway, identity lifecycle management, and directory services; and customer identity services that provides authentication and authorization services, MFA, directory, and user management to enable organizations to provide their customers with easy and secure access to websites and applications. In addition, it offers Secrets Manager Credential Providers to provide and manage the credentials used by third-party solutions; and Secrets Manager Conjur for cloud-native applications. The company provides its products to financial services, manufacturing, insurance, healthcare, energy and utilities, transportation, retail, technology, and telecommunications industries; and government agencies through direct sales force, as well as distributors, systems integrators, value-added resellers, and managed security service providers. CyberArk Software Ltd. was founded in 1999 and is headquartered in Petah Tikva, Israel.

  Historical performance

  Stock information

  • Market capitalization: $5210057728
  • PEG ratio: 53.4146
  • Dividend yield: 0%

  Get more detailed information and learn how to buy CYBR.US stock

• Check Point Software Technologies (CHKP.US)

  Company summary

  Check Point Software Technologies Ltd. develops, markets, and supports a range of products and services for IT security worldwide. The company offers a portfolio of network security, endpoint security, data security, and management solutions. It provides Check Point Infinity Architecture, a cyber security architecture that protects against 5th and 6th generation cyber-attacks across various networks, endpoint, cloud, workloads, Internet of Things, and mobile. The company also offers security gateways and software platforms that support small and medium sized business (SMB) to large enterprise data center and telco-grade environments; and threat prevention technologies and zero-day protections. In addition, the company provides cloud network security, security and posture management, cloud workload protection, and cloud web application protection for web applications and APIs; and Check Point Harmony that delivers endpoint and secure connectivity for remote user access. Further, the company provides technical customer support programs and plans; professional services in implementing, upgrading, and optimizing Check Point products comprising design planning and security implementation; and certification and educational training services on Check Point products. It sells its products through multiple distribution channels, including distributors, resellers, system integrators, original equipment manufacturers, and managed security service providers. Check Point Software Technologies Ltd. was incorporated in 1993 and is headquartered in Tel Aviv, Israel.

  Historical performance

  Stock information

  • Market capitalization: $15601722368
  • P/E ratio: 20.0924
  • PEG ratio: 3.3712
  • Dividend yield: 0%

  Get more detailed information and learn how to buy CHKP.US stock

• Proofpoint (PFPT.US)

  Company summary

  Proofpoint, Inc. operates as a security-as-a-service provider that enables large and mid-sized organizations to defend, protect, archive, and govern their sensitive data worldwide. It offers protection against advanced and targeted threats, including malicious attachments, polymorphic threats, zero-day exploits, user-transparent drive-by downloads, malicious web links, hybrid threats, malware free attacks, and other penetration tactics. The company also provides integrated email security, cloud security, threat protection products, information protection and archiving, and digital risk protection product services. In addition, it offers solutions that enable secure business-to-business and business-to-consumer communications; email encryption services that encrypt sensitive emails and deliver them to PC or mobile device; file-transfer solutions for end-users to share various forms of documents and other content; security optimized cloud architecture solutions; and security-as-a-service platform consisting of solutions, platform technologies, and infrastructures. The company serves governments, education, financial services, and healthcare sectors; small and medium businesses; and mobile operators and Internet service providers. Proofpoint, Inc. has a partnership with Relativity ODA LLC to integrate Proofpoint platform with Relativity Trace to deliver an end-to-end archive and communication surveillance solution. The company was incorporated in 2002 and is headquartered in Sunnyvale, California. As of August 31, 2021, Proofpoint, Inc. was taken private.

  Historical performance

  Stock information

  • Market capitalization: $10159613952
  • PEG ratio: 2.7592
  • Dividend yield: 0%

  Get more detailed information and learn how to buy PFPT.US stock

• Cisco Systems (CSCO.US)

  Company summary

  Cisco Systems, Inc. designs, manufactures, and sells Internet Protocol based networking and other products related to the communications and information technology industry in the Americas, Europe, the Middle East, Africa, the Asia Pacific, Japan, and China. It provides infrastructure platforms, including networking technologies of switching, routing, wireless, and data center products that are designed to work together to deliver networking capabilities, and transport and/or store data. The company also offers collaboration products comprising unified communications, Cisco TelePresence, and conferencing, as well as the Internet of Things and analytics software. In addition, it provides security products, such as network security, cloud and email security, identity and access management, advanced threat protection, and unified threat management products. Further, the company offers a range of service and support options for its customers, including technical support and advanced services. It serves businesses of various sizes, public institutions, governments, and service providers. The company sells its products and services directly, as well as through systems integrators, service providers, other resellers, and distributors. Cisco Systems, Inc. has strategic alliances with other companies. Cisco Systems, Inc. was incorporated in 1984 and is headquartered in San Jose, California.

  Historical performance

  Stock information

  • Market capitalization: $181249818624
  • P/E ratio: 15.3579
  • PEG ratio: 2.2137
  • Dividend yield: 0.035%

  Get more detailed information and learn how to buy CSCO.US stock

What ETFs track the cybersecurity category?

Exchange-traded funds (ETFs) allow you to invest in a spectrum of cybersecurity stocks.

Compare trading platforms

Take a look at a few trading platforms to invest in this fast-evolving industry.

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SoFi Invest SoFi Invest		Stocks, ETFs, Cryptocurrency	$0	$1	$10 - $100 when you open an account and place a first crypto trade of $50 - $5,000+	A free way to invest in most equities.	Go to site More Info		loading Fetching your data...
Tastyworks Tastyworks		Stocks, Options, ETFs, Cryptocurrency	$0	$0	$200 in US stocks when you open and fund an account with min. $2,000 for 3+ mos.	Trade stocks, options, ETFs and futures on mobile or desktop with this advanced platform.	Go to site More Info		loading Fetching your data...
JPMorgan Self-Directed Investing JPMorgan Self-Directed Investing		Stocks, Bonds, Options, Mutual funds, ETFs	$0	$0	$125 - $625 when you open and fund an account with $25,000 - $250,000+	INVESTMENT AND INSURANCE PRODUCTS ARE: NOT A DEPOSIT • NOT FDIC INSURED • NO BANK GUARANTEE • MAY LOSE VALUE	Go to site More Info		loading Fetching your data...
Axos Bank Self Directed Investing Axos Bank Self Directed Investing		Stocks	$0	$1,000	$150 when you open an account and deposit at least $1500.	Go to site More Info		loading Fetching your data...

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Bottom line

There are risks associated with investing in cybersecurity stocks. But since the demand for these services isn’t going anywhere, cybersecurity might be a profitable long-term investment.

You’ll need a brokerage account to get started — compare a few trading platforms to invest in data protection.

Frequently asked questions

• How many cyber attacks happen every year in the US?

  There were 80,000 cyberattacks per day, or just shy of 30 million attacks per year, in 2018.

• What is cyber insurance?

  Cyber insurance protects your business if your data is breached. It generally helps recover compromised data, repair computer systems and restore identities of affected users.

• How much do cyberattacks cost the US every year?

  Cyberattacks cost the US economy approximately $57 to $109 billion in 2016.