Buy 3 Cybersecurity Stocks to Strengthen Portfolio Security in 2H25

Cybersecurity encompasses comprehensive security measures designed to protect systems, networks and programs from digital attacks. These attacks often aim to access, alter, or destroy sensitive information, extort money from users through ransomware, or disrupt the integrity of normal business operations. 

This space focuses on companies that offer integrated protection against evolving security threats while simplifying IT security infrastructure. Cybersecurity companies provide solutions to safeguard applications, networks, and cloud computing environments. 

Their offerings include application-specific integrated circuits, hardware architecture, operating systems, and associated security and networking functions, ensuring robust defenses against cyberattacks.

The widespread adoption of artificial intelligence (AI), IoT devices, and increased digitization across both public and private sectors has heightened vulnerabilities and expanded attack surfaces, necessitating the development of advanced security solutions. 

We recommend three cybersecurity stocks for the rest of 2025 to strengthen your portfolio. These are CyberArk Software Ltd. CYBR, Okta Inc. OKTA and Fortinet Inc. FTNT. Each of our picks carries either a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The chart below shows the price performance of our three picks in the past three months.

CyberArk Software Ltd.

Zacks Rank #1 CyberArk Software is benefiting from the rising demand for cybersecurity and privileged access security solutions due to the long list of data breaches and increasing digital transformation strategies. 

A strong presence across verticals, such as banking, healthcare, government and utilities, is safeguarding CYBR from the adverse effects of softening IT spending. CYBR’s strategic mix shift toward software-as-a-service and subscription-based solutions is driving top-line growth.

CyberArk is gaining customer accounts, which contributes to its revenues. The vast customer base presents the company with an opportunity to upsell products within its installed user base. Furthermore, in the last few quarters, CYBR has been able to close a significant number of seven-figure deals. 

The growing number of large deals in the revenue mix is helpful as it increases deferred revenues and visibility. Moreover, any product refresh brings in additional dollars as every enterprise attempts to keep its threat management infrastructure updated. These factors in turn support CYBR’s top line.

CyberArk Software has an expected revenue and earnings growth rate of 31.9% and 26.4%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 4.9% in the last 60 days.

Okta Inc.

Zacks Rank #2 Okta operates as an identity partner in the United States and internationally. OKTA offers a suite of products and services used to manage and secure identities, such as Single Sign-On, which enables users to access applications in the cloud or on-premises from various devices. OKTA also provides Universal Directory, a cloud-based system of record to store and secure user, application, and device profiles for an organization.

OKTA’s Adaptive Multi-Factor Authentication provides a layer of security for cloud, mobile, web applications, and data, while API Access Management enables organizations to secure APIs. Access Gateway allows organizations to extend Workforce Identity Cloud, and Okta Device Access enables end users to securely log in to devices with Okta credentials. 

OKTA has expected revenue and earnings growth rates of 9.4% and 16.7%, respectively, for the current year (ending January 2026). The Zacks Consensus Estimate for current-year earnings has improved 2.8% over the last 60 days. 

Fortinet Inc.

Zacks Rank #2 Fortinet is benefiting from rising demand from large enterprise customers and growth in the company's security subscriptions. FTNT is also gaining from the robust growth in Fortinet Security Fabric, cloud and Software-defined Wide Area Network offerings. Higher IT spending on cybersecurity is further expected to aid FTNT in growing faster than the security market. 

We expect 2025 net sales to rise 13.1% from 2024. FTNT has a strong balance sheet that bodes well for investors. The focus on enhancing its unified threat management portfolio through product development and acquisitions is a tailwind for the company.

Fortinet has expected revenue and earnings growth rates of 13.3% and 4.6%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.4% over the last 60 days. 

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This article originally published on Zacks Investment Research (zacks.com).

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