Cybersecurity is a hot topic with the frequency of attacks increasing, costs multiplying, and opportunities abound for cybersecurity companies. The cybersecurity market is expected to triple in size by 2027, reaching $10.50 trillion, with much of the spending focused on a few names. Major providers like Palo Alto Networks NASDAQ:PANWCrowdstrike Nasdaq:CRWDAnd Fortnite Nasdaq: Fascinated It will be among the winners and garnering attention from analysts today. These stocks are among the most favored by analysts, ranking among the top 15 most upgraded stocks for 2025 and the three most upgraded stocks in their industry. With cyber threats expected to accelerate, the trends supporting their business and analyst sentiment will continue to push stock prices higher.
Palo Alto Networks is a leading cybersecurity provider
Palo Alto Networks Today
Palo Alto Networks
(As of 10:21 a.m. ET)
- 52 week range
- $130.04
▼
$207.24
- P/E ratio
- 23.81
- Price target
- $201.46
Palo Alto Networks is the largest cybersecurity provider by market cap and revenue. It is now creating a platform, unifying its products into one format that is easier to use and delivers results faster than expected. Revenue and earnings growth were not as impacted as feared, and leverage is increasing, including increasing customer numbers and deepening service penetration, to help sustain above-expected growth in 2025.
As far as analysts are concerned, Palo Alto Networks has 82 positive signals in 2024, including upgrades and target price revisions. The 43 analysts tracked by MarketBeat have rated the stock with a Moderate Buy consensus and see it trading at a new high in 2025. The consensus target is in line with the current high, but the revision trend is positive and leads to the high range of nearly $240, a 22% upside from the price. Closing in 2024.
Palo Alto’s valuation is a concern, but the growth outlook makes up for it. The stock trades at 50 times next year’s earnings, but earnings are expected to maintain a compound annual growth rate in the mid-teens for at least two years. Long-term forecasts are for earnings growth to accelerate toward the end of this decade and maintain the higher pace into the next decade, bringing the valuation down to a reasonable low 20x range.
CrowdStrike’s centralized Falcon platform gives it an advantage
Crowdstrike today
(As of 10:22 a.m. ET)
- 52 week range
- $200.81
▼
$398.33
- P/E ratio
- 678.01
- Price target
- $364.25
CrowdStrike is less than half the size of the Palo Alto network but is rapidly growing its business. In F2025, the pace of growth slows sequentially and year on year but maintains a high pace of 30%. Growth in F2026 is expected to continue in the 20% range. F2025 results also include outperformance driven by significant customer growth and service penetration. Customers can use CRWD cybersecurity plug-and-play modules, and quickly build on core services as needed.
One of CrowdStrike’s advantages is Falcon’s cloud-native platform, which has centralized its offerings from the beginning. Falcon allows quick and easy deployment, delivers superior performance, and has a low impact on peripheral devices. Although it is not technically a Zero Trust service, its services comply with the Zero Trust framework, making CrowdStrike an integral part of a comprehensive enterprise-quality zero trust solution.
In terms of analysts, MarketBeat tracks 43 analysts who have issued 82 positive signals for the stock in 2024. CrowdStrike is ranked the eighth most upgraded cybersecurity stock overall and the second most upgraded cybersecurity stock. Analysts peg it as a moderate buy and see it trading in the $365 to $450 area in 2025.
Fortinet’s Zero Trust offerings are easy to use and cost-effective
Fortnite today
(As of 10:22 a.m. ET)
- 52 week range
- $54.57
▼
$100.59
- P/E ratio
- 48.17
- Price target
- $92.77
Fortinet is among the top five cybersecurity stocks by market cap and revenue, growing at a low-double-digit pace in F2024. The results are based on customer growth and service penetration and are better than analysts’ expectations. Growth is expected to gradually accelerate in F2025 and continue to deliver superior profitability. One of Fortinet’s attractions is its industry-leading profitability. It’s the third most upgraded cybersecurity stock of 2024.
Fortinet’s CQ3 2024 GAAP and adjusted operating margins are more than double its competitors, resulting in significant savings and free cash flow. At the end of the third quarter, balance sheet highlights include a cash buildup and an increase in current and total assets partially offset by an increase in liabilities. The company carries debt but has net cash, leverage is low, and shares are rising. Equity, a measure of shareholder value, turned positive during the quarter and is expected to grow in 2025.
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