• Education
    • Higher Education
    • Scholarships & Grants
    • Online Learning
    • School Reforms
    • Research & Innovation
  • Lifestyle
    • Travel
    • Food & Drink
    • Fashion & Beauty
    • Home & Living
    • Relationships & Family
  • Technology & Startups
    • Software & Apps
    • Startup Success Stories
    • Startups & Innovations
    • Tech Regulations
    • Venture Capital
    • Artificial Intelligence
    • Cybersecurity
    • Emerging Technologies
    • Gadgets & Devices
    • Industry Analysis
  • About us
  • Contact
  • Advertise with Us
  • Privacy & Policy
Today Headline
  • Home
  • World News
    • Us & Canada
    • Europe
    • Asia
    • Africa
    • Middle East
  • Politics
    • Elections
    • Political Parties
    • Government Policies
    • International Relations
    • Legislative News
  • Business & Finance
    • Market Trends
    • Stock Market
    • Entrepreneurship
    • Corporate News
    • Economic Policies
  • Science & Environment
    • Space Exploration
    • Climate Change
    • Wildlife & Conservation
    • Environmental Policies
    • Medical Research
  • Health
    • Public Health
    • Mental Health
    • Medical Breakthroughs
    • Fitness & Nutrition
    • Pandemic Updates
  • Sports
    • Football
    • Basketball
    • Tennis
    • Olympics
    • Motorsport
  • Entertainment
    • Movies
    • Music
    • TV & Streaming
    • Celebrity News
    • Awards & Festivals
  • Crime & Justice
    • Court Cases
    • Cybercrime
    • Policing
    • Criminal Investigations
    • Legal Reforms
No Result
View All Result
  • Home
  • World News
    • Us & Canada
    • Europe
    • Asia
    • Africa
    • Middle East
  • Politics
    • Elections
    • Political Parties
    • Government Policies
    • International Relations
    • Legislative News
  • Business & Finance
    • Market Trends
    • Stock Market
    • Entrepreneurship
    • Corporate News
    • Economic Policies
  • Science & Environment
    • Space Exploration
    • Climate Change
    • Wildlife & Conservation
    • Environmental Policies
    • Medical Research
  • Health
    • Public Health
    • Mental Health
    • Medical Breakthroughs
    • Fitness & Nutrition
    • Pandemic Updates
  • Sports
    • Football
    • Basketball
    • Tennis
    • Olympics
    • Motorsport
  • Entertainment
    • Movies
    • Music
    • TV & Streaming
    • Celebrity News
    • Awards & Festivals
  • Crime & Justice
    • Court Cases
    • Cybercrime
    • Policing
    • Criminal Investigations
    • Legal Reforms
No Result
View All Result
Today Headline
No Result
View All Result
Home Business & Finance

3 Cybersecurity Stocks You Can Buy and Hold for the Next Decade | The Motley Fool

November 21, 2024
in Business & Finance
Reading Time: 4 mins read
A A
0
3 Cybersecurity Stocks You Can Buy and Hold for the Next Decade | The Motley Fool
2
SHARES
5
VIEWS
Share on FacebookShare on Twitter


Investors have high expectations for the cloud and AI industries. They both promise to transform the technology landscape, and should bring significant returns to investors along the way.

However, the success of both will be next to impossible without adequate cybersecurity. Investors have not ignored this fact, which is why many of the top stocks in this industry trade at a significant premium.

Still, those premiums are not so high that investors cannot buy shares of some of them now and profit handsomely over the next decade. In particular, I’d suggest considering opening positions in these cybersecurity stocks.

CrowdStrike

Some investors may understandably look at CrowdStrike (CRWD -0.89%) with a wary eye. A global IT outage set off by an update to its security software for machines running Microsoft‘s Windows operating system sent its stock reeling. The fact that even after that event, its price-to-sales (P/S) ratio has rebounded to 24 speaks to how expensive this stock has become.

To its credit, CrowdStrike quickly took responsibility for the issue and issued a fix rapidly. This seems to have helped maintain confidence in the company, and clients have not fled its platform in significant numbers.

Although investors know it best for its endpoint security offerings, CrowdStrike’s Falcon platform offers an array of types of security products. As a result, the company’s average customer subscribes to seven of its modules. Moreover, many companies prefer to simplify their tech relationships by having a single company handle all their cybersecurity needs. That trend appears to be helping CrowdStrike.

The IT outage occurred in July, near the end of the company’s fiscal 2025 second quarter. Hence, it didn’t register meaningfully on the $964 million in revenue that it booked for that quarter (which ended July 31). The top line still rose 32% year over year. Also, slower expense growth helped it book $47 million in net income for fiscal Q2, far surpassing its $8.5 million profit in the year-ago quarter.

Shareholders will get more of an idea about how the outage is impacting CrowdStrike’s financials when it releases its fiscal Q3 numbers on Nov. 26. However, investors seemed to have largely moved on, suggesting that they feel it probably won’t derail CrowdStrike’s long-term growth story.

SentinelOne

Like CrowdStrike, SentinelOne (S -1.99%) specializes in endpoint security. However, it stands out in other ways, namely by employing an AI-first approach. Unlike many other platforms, it does not rely on the discovery of malware signatures. Rather, it monitors behavior to identify threats, which can give it a competitive advantage.

Additionally, its platform is scalable across multiple third-party products and services, making it easily adaptable to customers’ networks. SentinelOne has also designed its software to be user-friendly, making it simple for users to deploy, monitor threats, and conduct investigations.

Its software has become increasingly popular. In its fiscal 2025 second quarter (which ended July 31), its revenue rose 33% year over year to $199 million. While it has not achieved profitability yet, it’s been holding the line on costs, so operating expenses rose by only 11%. That left it with a net loss of $69 million compared to $90 million in the prior-year period.

Admittedly, the stock has struggled this year. In its fiscal 2024, its revenue growth was 47%, so its current growth rate reflects a significant slowdown. Nonetheless, its P/S ratio of 11 might be attractive to investors looking for lower-cost alternatives in the cybersecurity space, which could put SentinelOne stock on track for significant growth.

Zscaler

Zscaler (ZS -1.67%) is another security company well-positioned to capitalize on organizations’ growing need for cybersecurity. Like CrowdStrike, it offers numerous security products. However, while the company touts a cloud-native infrastructure, its specialty is zero-trust security.

A zero-trust system starts from the assumption that anyone attempting to enter a network is an attacker. Hence, every user must prove their credentials through criteria such as specific devices or locations. One’s role in the organization usually determines precisely what areas of the network the person has access to, and to what degree. This can limit the damage an attacker can do with a single set of compromised credentials.

This approach helped Zscaler boost its revenue by 30% to $593 million in the fourth quarter of its fiscal 2024, which ended July 31. Its revenue growth tracked slightly ahead of its expense growth, allowing it to cut its net loss to $15 million from $31 million in the prior-year quarter.

As with its peers, a slowing growth rate from past years soured investors on Zscaler stock. Nonetheless, the cybersecurity industry is on track for continued expansion, so even if growth rates slow down, Zscaler will likely benefit from robust revenue increases for years to come. Considering its expected growth, its 14 P/S ratio probably shouldn’t douse investors’ interest in Zscaler stock.

Will Healy has positions in CrowdStrike and Zscaler. The Motley Fool has positions in and recommends CrowdStrike, Microsoft, and Zscaler. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.

Previous Post

Trump Tells Republicans to ‘Kill’ Bipartisan Press Freedom Bill

Next Post

Key witness is Germany’s ‘cum-ex’ tax fraud scandal goes on trial

Related Posts

Elon Musk’s court fights to outlast his time at White House

Elon Musk’s court fights to outlast his time at White House todayheadline

June 1, 2025
0
Germany's new chancellor, Merz, to meet Trump in Washington on Thursday

Germany's new chancellor, Merz, to meet Trump in Washington on Thursday todayheadline

June 1, 2025
0
Next Post
Key witness is Germany's 'cum-ex' tax fraud scandal goes on trial

Key witness is Germany's 'cum-ex' tax fraud scandal goes on trial

  • Trending
  • Comments
  • Latest
Family calls for change after B.C. nurse dies by suicide after attacks on the job

Family calls for change after B.C. nurse dies by suicide after attacks on the job

April 2, 2025
Pioneering 3D printing project shares successes

Product reduces TPH levels to non-hazardous status

November 27, 2024

Hospital Mergers Fail to Deliver Better Care or Lower Costs, Study Finds todayheadline

December 31, 2024

Police ID man who died after Corso Italia fight

December 23, 2024
Harris tells supporters 'never give up' and urges peaceful transfer of power

Harris tells supporters ‘never give up’ and urges peaceful transfer of power

0
Des Moines Man Accused Of Shooting Ex-Girlfriend's Mother

Des Moines Man Accused Of Shooting Ex-Girlfriend’s Mother

0

Trump ‘looks forward’ to White House meeting with Biden

0
Catholic voters were critical to Donald Trump’s blowout victory: ‘Harris snubbed us’

Catholic voters were critical to Donald Trump’s blowout victory: ‘Harris snubbed us’

0
ET logo

Texas softball ace Teagan Kavan pitches a complete-game win over Oklahoma in Women’s College World Series hours after beloved grandmother’s death todayheadline

June 1, 2025
New Orleans holds burial of repatriated African Americans whose skulls were used in racist research

New Orleans holds burial of repatriated African Americans whose skulls were used in racist research

June 1, 2025
UK government to spend £1.5bn on six new weapons factories

UK government to spend £1.5bn on six new weapons factories

June 1, 2025
The Straits Times logo

Korea’s presidential front runner Lee Jae-myung backs nuclear power — for now

June 1, 2025

Recent News

ET logo

Texas softball ace Teagan Kavan pitches a complete-game win over Oklahoma in Women’s College World Series hours after beloved grandmother’s death todayheadline

June 1, 2025
3
New Orleans holds burial of repatriated African Americans whose skulls were used in racist research

New Orleans holds burial of repatriated African Americans whose skulls were used in racist research

June 1, 2025
3
UK government to spend £1.5bn on six new weapons factories

UK government to spend £1.5bn on six new weapons factories

June 1, 2025
3
The Straits Times logo

Korea’s presidential front runner Lee Jae-myung backs nuclear power — for now

June 1, 2025
4

TodayHeadline is a dynamic news website dedicated to delivering up-to-date and comprehensive news coverage from around the globe.

Follow Us

Browse by Category

  • Africa
  • Asia
  • Basketball
  • Business & Finance
  • Climate Change
  • Crime & Justice
  • Cybersecurity
  • Economic Policies
  • Elections
  • Entertainment
  • Entrepreneurship
  • Environmental Policies
  • Europe
  • Football
  • Gadgets & Devices
  • Health
  • Medical Research
  • Mental Health
  • Middle East
  • Motorsport
  • Olympics
  • Politics
  • Public Health
  • Relationships & Family
  • Science & Environment
  • Software & Apps
  • Space Exploration
  • Sports
  • Stock Market
  • Technology & Startups
  • Tennis
  • Travel
  • Uncategorized
  • Us & Canada
  • Wildlife & Conservation
  • World News

Recent News

Elon Musk’s court fights to outlast his time at White House

Elon Musk’s court fights to outlast his time at White House todayheadline

June 1, 2025
Germany's new chancellor, Merz, to meet Trump in Washington on Thursday

Germany's new chancellor, Merz, to meet Trump in Washington on Thursday todayheadline

June 1, 2025
  • Education
  • Lifestyle
  • Technology & Startups
  • About us
  • Contact
  • Advertise with Us
  • Privacy & Policy

© 2024 Todayheadline.co

Welcome Back!

OR

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • Business & Finance
  • Corporate News
  • Economic Policies
  • Entrepreneurship
  • Market Trends
  • Crime & Justice
  • Court Cases
  • Criminal Investigations
  • Cybercrime
  • Legal Reforms
  • Policing
  • Education
  • Higher Education
  • Online Learning
  • Entertainment
  • Awards & Festivals
  • Celebrity News
  • Movies
  • Music
  • Health
  • Fitness & Nutrition
  • Medical Breakthroughs
  • Mental Health
  • Pandemic Updates
  • Lifestyle
  • Fashion & Beauty
  • Food & Drink
  • Home & Living
  • Politics
  • Elections
  • Government Policies
  • International Relations
  • Legislative News
  • Political Parties
  • Africa
  • Asia
  • Europe
  • Middle East
  • Artificial Intelligence
  • Cybersecurity
  • Emerging Technologies
  • Gadgets & Devices
  • Industry Analysis
  • Basketball
  • Football
  • Motorsport
  • Olympics
  • Climate Change
  • Environmental Policies
  • Medical Research
  • Science & Environment
  • Space Exploration
  • Wildlife & Conservation
  • Sports
  • Tennis
  • Technology & Startups
  • Software & Apps
  • Startup Success Stories
  • Startups & Innovations
  • Tech Regulations
  • Venture Capital
  • Uncategorized
  • World News
  • Us & Canada
  • Public Health
  • Relationships & Family
  • Travel
  • Research & Innovation
  • Scholarships & Grants
  • School Reforms
  • Stock Market
  • TV & Streaming
  • Advertise with Us
  • Privacy & Policy
  • About us
  • Contact

© 2024 Todayheadline.co