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AI-Driven Growth Makes These 4 Cybersecurity Stocks a Must-Buy
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An updated edition of the April 25, 2025 article.
The digital economy has changed how companies view cybersecurity. It’s no longer just an IT concern tucked away in the background, but it is now a top priority in every boardroom. Businesses are constantly under threat, facing a flood of cyberattacks that are getting more frequent and more sophisticated. Ransomware, data breaches and phishing attacks can lead to serious financial losses and damage to brand reputation.
With threats mounting, it’s no surprise that the cybersecurity industry is booming. Fortune Business Insights expects the global cybersecurity market to grow from $193.73 billion in 2024 to $562.72 billion by 2032, a strong CAGR of 14.3%. Driving this increase is the growing complexity of IT systems, tighter regulations, and the constant need to protect sensitive data and systems. Big names like Palo Alto Networks (PANW - Free Report) , Check Point Software (CHKP - Free Report) and CrowdStrike (CRWD - Free Report) are already tapping into this demand by offering cutting-edge security solutions built for the modern threat landscape.
Today’s attacks are smarter and faster than ever, and traditional security tools are falling behind. That’s where artificial intelligence (AI) comes in. AI can analyze vast volumes of data and detect potential threats before they escalate. It shifts cybersecurity from reactive to proactive. The pace at which threats emerge means companies need to automate their detection and response processes, and AI is the most promising way to do that.
Some cybersecurity firms are leaning into this AI trend, and they’re doing it well. CyberArk Software (CYBR - Free Report) , Okta (OKTA - Free Report) , Qualys (QLYS - Free Report) and A10 Networks (ATEN - Free Report) are enhancing their platforms with AI to stay ahead of sophisticated threats. This gives them an edge in both effectiveness and market relevance. They’re not only helping customers better secure their environments but also setting themselves up for sustainable growth.
Our Cybersecurity Screen makes it easy to identify high-potential stocks at any given time, just like the four mentioned above. Leveraging advanced tools, our thematic screens identify companies shaping the future, making it easier to capitalize on emerging trends.
Ready to uncover more transformative thematic investment ideas? Explore 30 cutting-edge investment themes with Zacks Thematic Screens and discover your next big opportunity.
4 Cybersecurity Stocks to Watch
CyberArk specializes in offering identity security solutions. It is strategically leveraging AI to strengthen its leadership in the identity security space. Its new Secure AI Agent solution directly addresses the risks posed by AI-driven machine identities, positioning the company at the forefront of protecting both human and non-human access.
With AI agents proliferating across enterprise environments, CyberArk’s unified platform offers critical capabilities like AI-specific discovery, privilege controls, lifecycle automation and governance. These innovations, combined with its acquisitions of Venafi and Zilla, are enhancing CyberArk’s ability to consolidate identity solutions and drive multi-product adoption.
As organizations move toward agentic AI and machine identity management, CyberArk is uniquely positioned to deliver end-to-end identity security. This strategic focus on AI is not only improving this Zacks Rank #1 (Strong Buy) company’s customer value proposition but also expanding its addressable market and supporting sustainable long-term revenue growth. You can see the complete list of today’s Zacks #1 Rank stocks here.
Qualys focuses on vulnerability management, compliance and cloud security, areas that have become essential as enterprises move workloads across hybrid and multi-cloud environments. The company is strategically enhancing its AI capabilities to strengthen its position in the growing vulnerability management and cloud security market.
Qualys has integrated advanced AI models into its TotalCloud and VMDR (Vulnerability Management, Detection and Response) platforms, allowing for faster detection, prioritization and remediation of security threats. By leveraging AI to analyze vast volumes of threat data, Qualys enables enterprises to automate threat triage and focus on the most critical vulnerabilities with precision.
As cyber threats become more sophisticated, Qualys’ AI-powered, cloud-native platform gives it a competitive edge. These innovations are likely to accelerate customer adoption, drive upselling and support strong long-term revenue growth for this Zacks Rank #1 company.
Okta specializes in identity and access management, helping enterprises ensure that the right users have access to the right resources. The company is significantly ramping up its AI capabilities to stay ahead in the evolving cybersecurity landscape, particularly as digital identities become more complex with the rise of machine agents and generative AI.
Its latest innovation, Identity Threat Protection with Okta AI, integrates machine learning and behavioral analytics to assess identity risks in real time. This solution continuously monitors user behavior, device context and login patterns to proactively detect and mitigate threats, allowing enterprises to enforce adaptive access policies that respond dynamically to risk signals.
OKTA exited the first quarter of fiscal 2026 with approximately 20,000 customers. Customers with more than $100,000 in Annual Contract Value increased 7% year over year to 4,870. The company’s growing traction with Fortune 500 clients and expanding total addressable market make this Zacks Rank #2 (Buy) stock a compelling long-term bet.
A10 Networks is advancing its AI-driven cybersecurity strategy by integrating scalable, secure solutions that address both enterprise and service provider needs. Its recent acquisition of ThreatXProtect adds critical Web Application and API Protection capabilities, enhancing its AI firewall and DDoS (Distributed Denial of Service) protection offerings. These moves strengthen A10 Networks' Defend portfolio and align with growing enterprise demand for hybrid security frameworks capable of safeguarding sensitive applications across cloud and on-premises environments.
The rise of AI workloads is fueling demand for high-capacity, low-latency and energy-efficient network infrastructure, areas where A10 Networks’ solutions excel, making the company a preferred partner in large-scale AI data center deployments. The company’s early engagement with global enterprises around AI inference workloads, especially in regions with strong data sovereignty needs, positions it for durable, diversified growth.
Combined with strong margins, disciplined capital allocation and platform expansion, A10 Networks is well-placed to benefit from the accelerating intersection of AI and cybersecurity. These factors make this Zacks Rank #2 stock worth adding to the portfolio.
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AI-Driven Growth Makes These 4 Cybersecurity Stocks a Must-Buy
An updated edition of the April 25, 2025 article.
The digital economy has changed how companies view cybersecurity. It’s no longer just an IT concern tucked away in the background, but it is now a top priority in every boardroom. Businesses are constantly under threat, facing a flood of cyberattacks that are getting more frequent and more sophisticated. Ransomware, data breaches and phishing attacks can lead to serious financial losses and damage to brand reputation.
With threats mounting, it’s no surprise that the cybersecurity industry is booming. Fortune Business Insights expects the global cybersecurity market to grow from $193.73 billion in 2024 to $562.72 billion by 2032, a strong CAGR of 14.3%. Driving this increase is the growing complexity of IT systems, tighter regulations, and the constant need to protect sensitive data and systems. Big names like Palo Alto Networks (PANW - Free Report) , Check Point Software (CHKP - Free Report) and CrowdStrike (CRWD - Free Report) are already tapping into this demand by offering cutting-edge security solutions built for the modern threat landscape.
Today’s attacks are smarter and faster than ever, and traditional security tools are falling behind. That’s where artificial intelligence (AI) comes in. AI can analyze vast volumes of data and detect potential threats before they escalate. It shifts cybersecurity from reactive to proactive. The pace at which threats emerge means companies need to automate their detection and response processes, and AI is the most promising way to do that.
Some cybersecurity firms are leaning into this AI trend, and they’re doing it well. CyberArk Software (CYBR - Free Report) , Okta (OKTA - Free Report) , Qualys (QLYS - Free Report) and A10 Networks (ATEN - Free Report) are enhancing their platforms with AI to stay ahead of sophisticated threats. This gives them an edge in both effectiveness and market relevance. They’re not only helping customers better secure their environments but also setting themselves up for sustainable growth.
Our Cybersecurity Screen makes it easy to identify high-potential stocks at any given time, just like the four mentioned above. Leveraging advanced tools, our thematic screens identify companies shaping the future, making it easier to capitalize on emerging trends.
Ready to uncover more transformative thematic investment ideas? Explore 30 cutting-edge investment themes with Zacks Thematic Screens and discover your next big opportunity.
4 Cybersecurity Stocks to Watch
CyberArk specializes in offering identity security solutions. It is strategically leveraging AI to strengthen its leadership in the identity security space. Its new Secure AI Agent solution directly addresses the risks posed by AI-driven machine identities, positioning the company at the forefront of protecting both human and non-human access.
With AI agents proliferating across enterprise environments, CyberArk’s unified platform offers critical capabilities like AI-specific discovery, privilege controls, lifecycle automation and governance. These innovations, combined with its acquisitions of Venafi and Zilla, are enhancing CyberArk’s ability to consolidate identity solutions and drive multi-product adoption.
As organizations move toward agentic AI and machine identity management, CyberArk is uniquely positioned to deliver end-to-end identity security. This strategic focus on AI is not only improving this Zacks Rank #1 (Strong Buy) company’s customer value proposition but also expanding its addressable market and supporting sustainable long-term revenue growth. You can see the complete list of today’s Zacks #1 Rank stocks here.
Qualys focuses on vulnerability management, compliance and cloud security, areas that have become essential as enterprises move workloads across hybrid and multi-cloud environments. The company is strategically enhancing its AI capabilities to strengthen its position in the growing vulnerability management and cloud security market.
Qualys has integrated advanced AI models into its TotalCloud and VMDR (Vulnerability Management, Detection and Response) platforms, allowing for faster detection, prioritization and remediation of security threats. By leveraging AI to analyze vast volumes of threat data, Qualys enables enterprises to automate threat triage and focus on the most critical vulnerabilities with precision.
As cyber threats become more sophisticated, Qualys’ AI-powered, cloud-native platform gives it a competitive edge. These innovations are likely to accelerate customer adoption, drive upselling and support strong long-term revenue growth for this Zacks Rank #1 company.
Okta specializes in identity and access management, helping enterprises ensure that the right users have access to the right resources. The company is significantly ramping up its AI capabilities to stay ahead in the evolving cybersecurity landscape, particularly as digital identities become more complex with the rise of machine agents and generative AI.
Its latest innovation, Identity Threat Protection with Okta AI, integrates machine learning and behavioral analytics to assess identity risks in real time. This solution continuously monitors user behavior, device context and login patterns to proactively detect and mitigate threats, allowing enterprises to enforce adaptive access policies that respond dynamically to risk signals.
OKTA exited the first quarter of fiscal 2026 with approximately 20,000 customers. Customers with more than $100,000 in Annual Contract Value increased 7% year over year to 4,870. The company’s growing traction with Fortune 500 clients and expanding total addressable market make this Zacks Rank #2 (Buy) stock a compelling long-term bet.
A10 Networks is advancing its AI-driven cybersecurity strategy by integrating scalable, secure solutions that address both enterprise and service provider needs. Its recent acquisition of ThreatXProtect adds critical Web Application and API Protection capabilities, enhancing its AI firewall and DDoS (Distributed Denial of Service) protection offerings. These moves strengthen A10 Networks' Defend portfolio and align with growing enterprise demand for hybrid security frameworks capable of safeguarding sensitive applications across cloud and on-premises environments.
The rise of AI workloads is fueling demand for high-capacity, low-latency and energy-efficient network infrastructure, areas where A10 Networks’ solutions excel, making the company a preferred partner in large-scale AI data center deployments. The company’s early engagement with global enterprises around AI inference workloads, especially in regions with strong data sovereignty needs, positions it for durable, diversified growth.
Combined with strong margins, disciplined capital allocation and platform expansion, A10 Networks is well-placed to benefit from the accelerating intersection of AI and cybersecurity. These factors make this Zacks Rank #2 stock worth adding to the portfolio.