3 Smart Cybersecurity Stocks to Add to Your July Buy List (2024)

In an era where digital threats loom large, the demand for smart cybersecurity stockshas never been this high.

Investors are paying attention, as according to Fortune Business Insights, the global market for cybersecurity services and products was valued at $172.32 billion last yearand is expected to skyrocket to $424.97 billion by 2030. Ongoing advances in digitalization and artificial intelligence (AI) drive this growth, making the sector highly promising for investment.

Moreover, the financial impacts of data breaches can be severe, implementing robust security solutions imperative. Companies that provide essential security for critical applications are growing rapidly and are poised to further ascend in market stature.

In such circ*mstances, these three cybersecurity stocks offer excellent opportunities for investors eager to capitalize on the sector’s momentum. These companies have set themselves apart by delivering innovative security solutions and strong market performance, establishing themselves as key players in the cybersecurity field.

Cybersecurity Stocks: Zscaler (ZS)

Zscaler(NASDAQ:ZS) excels in the cybersecurity industry with its outstanding cloud-based solutions, which provide powerful protection for users, apps, and data regardless of location. The Zero Trust Exchange platform is a key component of its products, connecting users directly to apps and redefining safe network access.

Spicing up the intensity, Zscaler has acquired Avalorand Airgap Networks, pushing the frontiers of AI-driven Zero Trust Security Access Service Edge (SASE). It didn’t stop there, though, as it recently announced a partnership with the AI chip maker Nvidia(NASDAQ:NVDA). This alliance will bring Nvidia’s advanced Gen AI technology into Zscaler’s operations, notably enhancing the Zscaler Copilot platform. The improved Copilot will proactively identify and mitigate cyber risks, as well as optimize IT and network operations with greater speed and precision.

Moreover, Zscaler had a superb third-quarter of 2024, with a remarkable 32% bump in revenue to $553.2 million, while its earnings-per-share (EPS) smashed estimates by 23 cents.

These achievements underscore the company’s rapidly escalating business, making it a smart choice for investors.

Okta (OKTA)

3 Smart Cybersecurity Stocks to Add to Your July Buy List (2)

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Okta (NASDAQ:OKTA)has truly made its mark in cybersecurity, offering top-notch identity management solutions and smartly using AI to combat AI-driven threats. In October 2023, the company launched Identity Threat Protection, a new product for Okta Workforce Identity Cloud powered by Okta AI. This program goes beyond the initial user login, continually analyzing risk during active sessions and automatically responding to threats throughout the network, therefore dynamically improving security.

Additionally, Okta’s recent acquisition of Spera Securityhas strengthened its technological edge, significantly enhancing its Identity Threat Detection and Response (ITDR) capabilities and amplifying threat visibility across Identity Providers, SaaS, and infrastructure applications.

Continuing its streak of excellence, Okta has outperformed estimates for 16 consecutive quarters. In Q1 of 2025, it ramped up revenue by 19.1% to $617 million, surpassing expectations by $12.5 million, and impressively increased its non-GAAP operating income by a staggering 270% to $133 million.

As for what lies ahead, there’s a lot of optimism for a solid Q2, with operating margins projected between 19% and 20%. This demonstrates Okta’s ability to retain a strong position in the competitive cybersecurity sector.

Cloudflare (NET)

3 Smart Cybersecurity Stocks to Add to Your July Buy List (3)

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Cloudflare (NYSE:NET) has substantially upped its game with advanced AI and machine learning for real-time threat detection. It noticed a big spike in Distributed Denial-of-Service (DDoS) attacks last year, reflecting a growing threat landscape. To tackle this, it has beefed up its DDoS mitigation capabilities, ensuring robust protection for its clients against increasingly sophisticated threats.

On top of that, Cloudflare has introduced a dedicated Firewall for AI, protecting large language models with features like rate limiting and data detection. This initiative is crucial as AI adoption expands, securing these models from potential vulnerabilities.

In addition to these breakthroughs, Cloudflare’s partnership with CrowdStrike (NASDAQ:CRWD) marks a pivotal move in cybersecurity. They’re revolutionizing cybersecurity efficiency by integrating Zero Trust security with AI-powered defenses through a unified API.

Financially, Cloudflare kicked off the year strong, posting a 30% YOY revenue jumpto $378.6 million in Q1. Its success is further highlighted by a record influx of high-value customers, cementing Cloudflare’s status as a frontrunner in cybersecurity solutions.

On the date of publication, Nabeel Bukhari did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.comPublishing Guidelines.

On the date of publication, the responsible editor did not have (either directly or
indirectly) any positions in the securities mentioned in this article.

Nabeel Bukhari is a seasoned research analyst and keen investor. His expert insights help readers to skillfully tackle the complexities of the financial sector, with a particular focus on electric vehicles (EVs) and technology stocks. Nabeel holds a Bachelor of Laws degree from Bahria University.

3 Smart Cybersecurity Stocks to Add to Your July Buy List (2024)

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