Top 10 Cybersecurity Stocks to Buy in 2023 for Good Returns

The top 10 cybersecurity stocks to buy in 2023 for good returns have long-term potential

Since the COVID-19 outbreak started, expenditure on cybersecurity has skyrocketed. Due to the necessity of cloud computing and remote work, organizations now confront new security issues. As a result of the increased demand for next-generation security software, numerous cybersecurity stocks saw the outstanding performance in 2020 and 2021. Some of the greatest fliers were dampened by a bear market in 2022, but cybersecurity is still a popular investing theme.

Cybercrime is often increasing at a double-digit percentage rate. It shouldn't come as a surprise that worldwide spending on cybersecurity is anticipated to surpass US$170 billion in 2022 and that the business will likely continue to see rapid expansion for years to come. Knowing how to invest in cybersecurity companies can produce significant profits in the upcoming decade because they are a hot sector of the tech business. In this article, we have mentioned the top 10 cybersecurity stocks to buy in 2023 for good returns so let us have a look at those.

1. CrowdStrike Holdings

CrowdStrike Holdings is a cloud-native software provider that offers endpoint security, which is a defense for computers, servers, laptops, and other networked devices. CrowdStrike is especially well-suited for facilitating remote work because it is cloud-based.

2. Zscaler

Zscaler, a different provider of cloud-native security, collaborates with endpoint security services to keep data secure. Despite the stock's 50% decline in value in 2022, the firm has been rapidly growing its sales and is one of the largest pure-play cybersecurity stocks according to market cap.

3. Okta

Okta is a leader in identity and access management, which uses zero-trust architecture to reexamine conventional security. Before granting access to data and apps, this sort of identity management continually requires user authentication. Zero-trust security behaves more like a counterspy agency if legacy security is a fortress with a wall and a moat.

4. SentinelOne

Another recent pure-play cybersecurity startup to debut on the stock market is SentinelOne. SentinelOne's initial public offering (IPO) in June 2021, the largest ever for a cybersecurity business, garnered US$1.2 billion in cash and valued the company at US$10 billion. The stock has fallen below its IPO price due to SentinelOne's slowed revenue growth and a difficult year for the stock market in 2022.

5. Palo Alto Networks

Palo Alto Networks' expertise is centered on firewalls, which are old-school security tools that guard traffic entering and leaving physical sites like offices and data centers. Although there is still strong demand for its legacy services, cloud computing is where true development is occurring.

6. Fortinet

Fortinet, a supplier of legacy security software, ranks among the top cybersecurity firms in the world in terms of sales and market capitalization. It has sustained double-digit percentage growth and is very lucrative, much like its rival Palo Alto Networks. Contrary to Palo Alto Networks, however, Fortinet has made investments in its in-house development of cloud security to stay competitive.

7. Splunk

Splunk, a renowned pioneer in data analytics, offers software that enables businesses to comb through information logs, keep track of online activity, and plan reactions to data breaches. Although the company's platform predates cloud computing, it has been transitioning users to more recent cloud-based iterations of its software.

8. Datadog

A cloud-native tool called Datadog is designed to gather, watch over, and provide insights on cloud-based data and processes. To reduce the workload of busy IT staff, the corporation employs AI to assist automate the process of monitoring huge and complicated sets of data. It has also been continuously adding additional modules, such as cloud-based security and data monitoring, to its platform's functionality.

9. Akamai

Akamai, a content delivery network (CDN), makes sure that data safely reaches its destination. CDNs are significant because the amount of data being transmitted over the internet is continually rising. More people than ever use the internet for a variety of purposes, including business and enjoyment. To improve its network security services and safeguard its clients from ransomware attacks, Akamai bought the Israeli company Guardicore in 2021 and the cloud infrastructure provider Linode in the first half of 2022.

10. Leidos Holdings Inc

Globally, Leidos Holdings Inc. provides services to the civil, defense, intelligence, and health sectors. Leidos Holdings Inc. was included in 37 investors' portfolios at the end of Q4 2022. These funds together owned interests in the firm worth US$615.2 million, up from US$409.7 million in the previous quarter when 35 hedge funds owned stakes in the business. The stock is receiving favorable feedback from hedge funds.