Back to top

Image: Bigstock

AI-Driven Cybersecurity Boom Makes These 3 Stocks Worth Buying

Read MoreHide Full Article

An updated edition of the June 9, 2025 article.

Cybersecurity has shifted from being just an IT task to a major business priority. With companies facing constant cyberattacks, from ransomware to phishing schemes to major data breaches, the stakes are high. Cyberattacks don’t just disrupt operations. They can lead to major financial losses and lasting brand damage.

Given the rising risks, it’s clear why cybersecurity has become one of the fastest-growing industries. 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%. Fueling this growth are stricter regulations, more complex IT systems and the need to guard sensitive data. Companies like Palo Alto Networks (PANW - Free Report) , Zscaler (ZS - Free Report) and CrowdStrike (CRWD - Free Report) are already capitalizing on this trend by delivering advanced tools designed to tackle modern threats.

Today’s attacks are smarter and faster than ever, and traditional security tools are falling behind. This is 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.

Companies like CyberArk (CYBR - Free Report) , Fortinet (FTNT - Free Report) and Okta (OKTA - Free Report) are leaning heavily into AI. They're upgrading their platforms to detect and respond to threats more quickly and intelligently. This not only makes their products more valuable to customers but also gives them a stronger position in a fast-growing industry.

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.

3 Cybersecurity Stocks to Buy

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.

Fortinet is a global leader in network security, offering a comprehensive suite of cybersecurity solutions, including next-generation firewalls, endpoint security and AI-driven threat intelligence. Unlike many of its competitors, Fortinet differentiates itself by providing high-performance security solutions at a lower cost, making it an attractive choice for enterprises looking for cost-efficient cybersecurity solutions.

The company’s FortiAI platform employs deep learning to automate threat detection and response, reducing the time it takes to identify and neutralize cyber threats. Fortinet has also integrated AI-driven analytics into its FortiGuard Security Services, enhancing its predictive threat intelligence capabilities.

Fortinet stands out for its strong financial performance, consistently delivering profitability and robust free cash flow. Its expanding market share reflects the growing demand for its AI-enhanced security solutions, particularly among enterprises seeking high-performance protection at competitive pricing. With a solid balance sheet and continued investment in AI-driven security innovations, this Zacks Rank #2 (Buy) company remains a compelling choice for investors looking to capitalize on cybersecurity’s long-term growth.

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’s focus on protecting non-human identities (NHIs) and developers building secure agents is noteworthy. NHIs include service accounts, shared accounts, machines and tokens, and often operate outside traditional identity governance frameworks and can leave organizations vulnerable to security risks. Identity Security Posture Management and Okta Privileged Access help solve the vulnerabilities related to NHIs.

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 stock a compelling long-term bet.

Published in