3 Cybersecurity Stocks Defending Against Digital Threats

Given this landscape, investors looking to tap into this dynamic sector might consider watching cybersecurity stocks such as CrowdStrike Holdings, Inc. (CRWD - Get Rating), Palo Alto Networks, Inc. (PANW - Get Rating), and Fortinet, Inc. (FTNT - Get Rating). These companies adopt advanced AI tools to automate threat detection and enhance their defense systems.

Companies and governments invest heavily in protecting sensitive information from data breaches and ransomware incidents. For fiscal year 2025, the U.S. government has proposed $13 billion in funding across civilian departments and agencies, including an enhanced budget of $3 billion for the Cybersecurity and Infrastructure Security Agency (CISA), a $103 million increase from the previous year.

Moreover, cyberattacks have only increased this year, with 41% of small businesses experiencing a cyber threat. The region most affected by ransomware attacks is the United States, which accounts for 59% of them. This has led to a surge in cybersecurity solutions as strengthening defenses has become more crucial than ever.

Therefore, the global cybersecurity market is expected to reach $562.72 by 2032, exhibiting a CAGR of 14.3%.

Cybersecurity firms are developing solutions to protect mobile devices, IoT systems, and enterprise networks from advanced threats, making this industry attractive for long-term investors.

With that in mind, let’s analyze the fundamentals of the above-mentioned three Software – Security stocks, beginning with #3.

Stock #3: CrowdStrike Holdings, Inc. (CRWD - Get Rating)

CRWD is a global cybersecurity company that provides cloud-delivered protection of endpoints, cloud workloads, identity, and data. The company’s Falcon platform is designed for cybersecurity consolidation and is purpose-built to stop breaches. The platforms collect and integrate data from across the enterprise, including endpoints, cloud workloads, identities, and third-party sources.

On October 23, CRWD announced that it collaborated with Omnissa, a leading digital work platform company, to deliver real-time threat detection and automated remediation for Virtual Desktop Infrastructure (VDI) and physical desktop environments.

This strategic alliance of integrating CRWD’s Falcon in the Omnissa platform will empower interconnected threat detection and remediation for increased cyber resiliency in virtual environments.

In the same week, CRWD and FTNT announced a strategic partnership to unify AI-native endpoint security and next-generation firewall protection, allowing customers and partners to gain flexibility, visibility, and security across networks, applications, and endpoints to stop breaches. This partnership will unify CRWD’s Falcon cybersecurity platform with FTNT’s next-generation firewalls.