Cyber Security Stocks: 3 Blue Chips For Your Portfolio

The global cyber security market is projected to grow at a CAGR of 14.7% from 2024 to 2030

Here are our top 3 cyber security stocks to add to your long-term portfolio.

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Palo Alto Networks Inc $PANW

$107B Market cap

Palo Alto Networks is a cybersecurity company based in California, serving over 85,000 global customers, including many top corporations. Their platform approach covers network security, cloud security, and security operations, leveraging AI and automation to protect enterprise users and infrastructure.

Highlights

• Revenue CAGR of 31.2% from 2014-2023
• Beat earnings expectations in the last 15 consecutive quarters
• Annual EPS growth of 39%
• No debt
• Free cash flow CAGR of 23.2 in the past 5 years
•  Strong price performance 

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Check Point Software Technologies Ltd $CHKP

‍$19B Market cap

Check Point Software Technologies Ltd is a cybersecurity vendor that offers a range of IT security products and services. They provide solutions for network, endpoint, cloud, and mobile security, including firewall, VPN, intrusion prevention, antivirus, and more. Their offerings are tailored for enterprises, service providers, small businesses, and consumers, grouped into packages like Next Generation Firewall and Threat Prevention.

Highlights

• 88% gross margin (TTM)
• Consistent revenue growth
• No long term debt
• Effective management with a ROA of 15.84%, ROI of 22.84%, and ROE of 30.22% over the trailing 12 months
• ROIC of 27.21% (TTM)

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Qualys Inc $QLYS

‍$6B Market cap

Qualys Inc. operates as a leading provider of cloud-based security and compliance solutions, aiding enterprises in identifying and effectively managing security risks and compliance obligations. Headquartered in California, the company serves a global clientele exceeding 10,000 customers, primarily consisting of small- and medium-sized businesses.

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Highlights

• High profit margin of 25.775% (TTM)
• Return on invested capital of 34.1% (TTM)
• Extremely effective management with a ROA of 18.58%, ROI of 35.05%, and ROE of 41.09% over the trailing 12 months
• Revenue CAGR of 17.6% from 2014-2022
• Strong cash flow enables share buybacks, fueled by exceptional growth and profitability

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