Amid the historic stock market turbulence at the start of 2025, the importance of cybersecurity hasn't wavered. Regardless of economic headwinds or policy shifts, an ongoing rise in online threats ranging from data breaches, phishing scams, and ransomware to attacks on digital infrastructure continues to be a priority for businesses to manage across all sectors.
Companies developing cutting-edge security solutions stand to capitalize on a significant long-term growth opportunity. Here are four cybersecurity stocks I believe could be a great addition to your portfolio this April.
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SentinelOne (NYSE: S) specializes in endpoint security solutions, safeguarding devices such as computers, smartphones, servers, and IoT systems from unauthorized access and malicious threats across network connections. What sets the company apart is its use of artificial intelligence (AI) and machine learning to autonomously detect and respond to threats in real time through its Singularity platform.
The growth momentum has been fantastic. For the last reported fiscal 2025 (ended Jan. 31), total revenue climbed by 32% year over year, benefiting from several tailwinds, including a sharp increase in enterprise clients using multiple products. The company also cites a strong customer response to its new "Purple" generative AI integration, alongside an ongoing platform diversification beyond its endpoint security offerings.
For the year ahead, SentinelOne expects to cross the milestone of $1 billion in annual revenue while achieving a positive operating income. With shares currently down about 41% from its 52-week high at the time of writing, the company's outlook for more profitable growth makes the stock a compelling buy-the-dip opportunity.
Okta (NASDAQ: OKTA) is recognized as a leader in identity and access management (IAM), with a unique cloud-based platform enabling organizations to ensure that only authorized individuals access sensitive resources. Shares of Okta have been an outlier amid the stock market volatility this year, up 29% year to date, amid a string of better-than-expected results in recent quarters.
The financial metric that stands out was Okta's 25% increase in its remaining performance obligation (RPO) to $4.2 billion in its fiscal 2025 fourth quarter (ended Jan. 31). This indicator highlights the total value of future revenue from existing customer contracts, signaling strong demand with confidence building in its growth runway. For the year ahead, Okta is guiding for earnings per share (EPS) between $3.15 and $3.20, representing a solid 12% increase at the midpoint from last year.
Going forward, an effort to expand internationally as identity security becomes a cornerstone of modern large-scale organizations, Okta's innovative platform, and solid financial momentum should keep shares humming along.
Palo Alto Networks (NASDAQ: PANW) is the largest cybersecurity company in the world, with a market capitalization of $112 billion. While traditionally focused on network security solutions, the company's strength lies in its diversified product portfolio, which includes cloud security, endpoint protection, and automated threat detection solutions. In particular, its next-generation services within its Cortex AI-driven platform have been a growth driver, capturing robust customer demand, and playing an increasingly important role in the overall business.
Unlike many emerging cybersecurity firms struggling with inconsistent profitability, Palo Alto Networks delivers robust financial performance with steady revenue growth. The company is guiding for double-digit revenue and earnings growth this year, with a reliable subscription-based model ensuring predictable cash flow. The company's strong position to continue consolidating its market share in key cybersecurity categories highlights the stock's attraction as an investment in the long run.
Fortinet (NASDAQ: FTNT) maintains a leadership position in on-premise infrastructure solutions with its FortiGate next-generation firewalls (NGFWs), bucking the trend of many cybersecurity companies shifting exclusively to cloud-based solutions. The company is leveraging its more than 50% market share in network firewalls into high-growth software opportunities through its FortiOS, a unified AI-driven security-focused operating system.
The strategy continues to pay off, with Fortinet stock up about 42% over the past year. Investors convinced that secure hardware firewalls will remain critical at the enterprise level for mission-critical operations have plenty of reasons to buy and hold the stock for the long run.
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Dan Victor has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Fortinet and Okta. The Motley Fool recommends Palo Alto Networks. The Motley Fool has a disclosure policy.