Cybersecurity Stocks for 2025: Jefferies' Top Picks

Jefferies identifies top cybersecurity stocks for 2025, including Zscaler, Palo Alto Networks, CrowdStrike, SentinelOne, and CyberArk. Despite moderate growth expected in 2025, the sector remains resilient, particularly in the first half of the year. Zscaler, with a market cap of $28.3 billion, is highlighted as a high-growth opportunity with a "Buy" rating and a raised price target to $245. The company reported better-than-expected Q1 results and boosted its full-year guidance, driven by revenue growth of 26% YoY to $628 million.

The cybersecurity sector continues to be a critical investment area as businesses worldwide prioritize robust security solutions to protect their assets from the increasing threat of data breaches, ransomware attacks, and cyber threats. Despite a more moderate growth rate expected in 2025, Jefferies, a leading investment firm, believes the sector will remain resilient, particularly during the first half of the year. In this article, we'll explore the top five cybersecurity stocks identified by Jefferies for growth in 2025: Zscaler (ZS), Palo Alto Networks (PANW), CrowdStrike (CRWD), SentinelOne (S), and CyberArk (CYBR).

1. Zscaler (ZS)
Zscaler, a cloud security company with a market capitalization of $28.3 billion, is a prominent player in the cybersecurity sector. Its Zero Trust Exchange platform offers a range of cybersecurity solutions, including cyber threat protection, data protection, zero trust connectivity, and business analytics. Although Zscaler's stock underperformed in 2024, dropping 18.3% year-to-date, Jefferies views it as a high-growth opportunity. With a "Buy" rating and a price target of $245, Jefferies believes Zscaler is well-positioned for growth in a more distributed and cloud-based world [1]. Despite a recent decline in shares following better-than-expected Q1 results, Zscaler's revenue grew an impressive 26% year-over-year to $628 million, driven by an increase in users and additional subscription sales to existing customers [1].

2. Palo Alto Networks (PANW)
Palo Alto Networks, a leading cybersecurity company, is another top pick from Jefferies. With a market capitalization of $57.8 billion, Palo Alto Networks offers a range of cybersecurity solutions, including firewalls, intrusion prevention systems, and cloud security. Although the company's stock has experienced some volatility in 2024, Jefferies maintains a "Buy" rating and a price target of $325 [1]. With a strong focus on innovation and a commitment to helping businesses protect their assets, Palo Alto Networks is well-positioned for continued growth in the cybersecurity sector.

3. CrowdStrike (CRWD)
CrowdStrike, a cloud-native cybersecurity company with a market capitalization of $44.7 billion, is another standout pick from Jefferies. Its Falcon platform offers a range of cybersecurity solutions, including endpoint protection, cloud security, and threat intelligence. Although CrowdStrike's stock has experienced some volatility in 2024, Jefferies maintains a "Buy" rating and a price target of $200 [1]. With a commitment to innovation and a focus on helping businesses protect their assets from the ever-evolving threat landscape, CrowdStrike is well-positioned for continued growth in the cybersecurity sector.

4. SentinelOne (S)
SentinelOne, a cybersecurity company with a market capitalization of $10.7 billion, is another top pick from Jefferies. Its Singularity platform offers a range of cybersecurity solutions, including endpoint protection, cloud security, and threat intelligence. Although SentinelOne's stock has experienced some volatility in 2024, Jefferies maintains a "Buy" rating and a price target of $150 [1]. With a commitment to innovation and a focus on helping businesses protect their assets from the ever-evolving threat landscape, SentinelOne is well-positioned for continued growth in the cybersecurity sector.

5. CyberArk (CYBR)
CyberArk, a leading cybersecurity company with a market capitalization of $12.8 billion, is the final top pick from Jefferies. Its Privileged Access Security (PAS) platform offers a range of cybersecurity solutions, including identity and access management, endpoint protection, and cloud security. Although CyberArk's stock has experienced some volatility in 2024, Jefferies maintains a "Buy" rating and a price target of $185 [1]. With a strong focus on innovation and a commitment to helping businesses protect their most valuable assets, CyberArk is well-positioned for continued growth in the cybersecurity sector.

In conclusion, the cybersecurity sector is expected to remain resilient in 2025, despite a more moderate growth rate. With a focus on innovation and a commitment to helping businesses protect their assets from the ever-evolving threat landscape, the top five cybersecurity stocks identified by Jefferies - Zscaler, Palo Alto Networks, CrowdStrike, SentinelOne, and CyberArk - are well-positioned for continued growth in the coming year.

[1] Source: https://www.barchart.com/story/news/30257163/jefferies-says-these-are-the-top-5-cybersecurity-stocks-to-buy-for-2025