3 Cybersecurity Stocks You Can Buy and Hold for the Next Decade

Cybersecurity stocks have been impacted by the recent market sell-off, presenting an opportunity for investors to consider top companies in the industry. With cyberattacks on the rise and growing in complexity, investing in cybersecurity stocks for the long term can be a wise decision.

Palo Alto Networks, known for its next-generation firewalls, has evolved into a comprehensive cybersecurity company. By introducing a platformization strategy, Palo Alto Networks aims to streamline cybersecurity solutions for customers by consolidating them onto one of its three main platforms. This strategy has been successful, with a significant number of customers adopting the platformization approach. The company’s goal is to have between 2,500 and 3,500 platformization customers by fiscal year 2030, indicating strong growth potential.

CrowdStrike, a leader in endpoint security, offers the Falcon platform to protect devices connected to a network from malicious attacks. The company benefits from organizations seeking to consolidate their cybersecurity solutions onto a single platform, leading to increased adoption of its modules. CrowdStrike’s Falcon Flex solution provides customers with flexible licensing and procurement options, allowing for quick deployment of necessary cybersecurity solutions. Despite a slowdown in revenue growth following an outage last year, CrowdStrike remains a solid choice for long-term investment.

SentinelOne, another endpoint cybersecurity company, utilizes artificial intelligence and machine learning to analyze behavior and eliminate threats in real-time. The company has shown rapid revenue growth, albeit being marginally profitable. With a forward price-to-sales ratio lower than its competitors, SentinelOne presents an attractive investment opportunity. Additionally, a partnership with Lenovo to pre-install its Singularity Platform on new PCs sold by the PC vendor opens up a significant growth avenue for the company.

In conclusion, investing in cybersecurity stocks like Palo Alto Networks, CrowdStrike, and SentinelOne can be a lucrative long-term strategy given the increasing threat landscape and the need for robust cybersecurity solutions. These companies are well-positioned to capitalize on the growing demand for cybersecurity services and technologies.