Cybersecurity Stocks to Watch: Top 5 Picks for Outsized Returns

Palo Alto Networks, Fortinet, Okta, and Zscaler are top cybersecurity stocks with strong growth prospects. Palo Alto Networks has a complete platform with offerings in cloud security, endpoint, SASE, SIEM, and traditional firewalls. Fortinet dominates in network security and firewalls with a 31% operating margin. Okta is a pure-play leader in Identity and Access Management, while Zscaler is one of the fastest-growing companies in cybersecurity with a dominant position in SASE.

Cybersecurity stocks have seen robust growth, driven by the increasing complexity of the threat landscape and the proliferation of artificial intelligence (AI). As of July 2025, several companies stand out for their strong growth prospects. This article examines Palo Alto Networks, Fortinet, Okta, and Zscaler, highlighting their unique offerings and market positions.

Palo Alto Networks (PANW)
Palo Alto Networks, with a market value of $130.6 billion, has been a leader in cybersecurity, offering a comprehensive platform that includes cloud security, endpoint protection, Secure Access Service Edge (SASE), Security Information and Event Management (SIEM), and traditional firewalls. The company's "platformization" strategy has been well-received, with larger deals and higher revenue growth. CEO Nikesh Arora's approach to consolidating vendors has driven significant growth, with total revenue increasing by 14% to $2.3 billion in 2024 [1].

Fortinet (FTNT)
Fortinet, with a market value of $4.5 billion, is a dominant player in network security and firewalls. The company boasts a 31% operating margin, reflecting its strong market position. Fortinet's focus on network security and firewall solutions has positioned it well in the market. With a robust product portfolio, including FortiMail, FortiWeb, and FortiGate, Fortinet continues to innovate and expand its offerings [1].

Okta (OKTA)
Okta, with a market value of $16.8 billion, is a pure-play leader in Identity and Access Management (IAM). The company provides cloud-based IAM solutions that help organizations manage user identities and access to applications and services. Okta's strong market position and growing customer base have driven consistent revenue growth. The company's focus on simplifying identity management has made it a popular choice among enterprises [1].

Zscaler (ZS)
Zscaler, with a market value of $14.6 billion, is one of the fastest-growing companies in cybersecurity. The company's dominant position in Secure Access Service Edge (SASE) solutions has driven its rapid growth. Zscaler's offerings include private access, secure web gateway, and cloud security. The company's strong market position and innovative solutions have attracted significant investment and growth [1].

These companies represent some of the best cybersecurity stocks with strong growth prospects. As the cyberthreat environment continues to evolve, investors can expect these companies to play a significant role in shaping the future of cybersecurity.

References:
[1] https://www.kiplinger.com/investing/stocks/tech-stocks/602685/cybersecurity-stocks-to-lock-up-growth