With cyberattacks on the rise, investors may want to consider some of the top cybersecurity stocks to buy. For one, the world still isn’t prepared for more – which is ridiculous. Last year, cyberattacks were up 38% over 2021, according to Check Point Research. Worse, Cities, hospitals, schools, corporations, small businesses, and even U.S. government agencies are all still in the crosshairs. Newer attacks are exploding remote works and schools that shifted to e-learning. There are even more attacks on healthcare groups.
“According to an analysis by Cybersecurity Venture, the global annual cost of cybercrime could top $8 trillion in 2023,” as noted by Fox News. “That number could even underestimate the problem, according to numbers from Security Intelligence, who estimated that U.S.-based financial institutions alone lost close to $1.2 billion in ransomware attacks in 2021, an almost 200% increase over the previous year. If that rate increases simultaneously, global losses from cybercrime could be as high as $16 trillion in 2023.”
Far worse, according to Cybersecurity Ventures, global cybercrime costs will grow about 15% a year, reaching $10.5 trillion by 2025 (up from $3 trillion in 2015). That alone is a good reason for investors to look at some of the hottest cybersecurity stocks on the market.
As we wait to see what comes next, here are some top cybersecurity stocks to consider.
Global X Cybersecurity ETF (BUG)
One of the top cybersecurity stocks to buy is the Global X Cybersecurity ETF (NASDAQ:BUG). With an expense ratio of 0.50%, the ETF invests in companies that benefit from the increased adoption of cybersecurity technology, such as those involved with developing and managing security protocols preventing intrusion and attacks to systems, networks, applications, computers, and mobile devices. Some of the ETF’s top holdings include CrowdStrike (NASDAQ:CRWD), Palo Alto Networks (NASDAQ:PANW), Okta (NASDAQ:OKTA), and Rapid7 (NASDAQ:RPD).
Since the start of the year, the BUG ETF bounced from about $20 to $23.10. From here, I’d like to see the ETF closer to $30 a share.
Palo Alto Networks (PANW)
Another one of the hottest cybersecurity stocks to buy is Palo Alto Networks — the crème de la crème of top cybersecurity stocks to buy. Granted, PANW stock had a rough 2022, but so did everyone else. But 2023 has started out very well. In fact, PANW is now up to $199.44 after starting Jan. at $135 a share.
Helping, the company posted better-than-expected earnings in Feb. For its second quarter, the company posted revenue of $1.7 billion – up 26% year over year. That was ahead of Street expectations for $1.65 billion. It was also above its guidance range of $1.63 billion to $1.66 billion. Adjusted, PANW earned $1.05 a share, a massive jump from the guidance range of 76 to 78 cents.
Billings were $2 billion, also ahead of company guidance for $1.94 billion to $1.99 billion. Even better, for the April quarter, it expects revenue to fall in the range of $1.695 billion and $1.725 billion, up 22% to 24%, with non-GAAP profits of 90 cents to 94 cents a share. It also expects billings to range from $2.2 billion to $2.25 billion, an increase of 22% to 25%.
Fortinet (FTNT)
The last time I mentioned Fortinet (NASDAQ:FTNT), it traded around $54.50 on Dec. 13. Today, shares of FTNT stock are up to $68.07. From here, I’d like to see it test $75. Analysts still love the stock here, too. Barclays, for example, raised its target price to $75 from $68, with an overweight rating. Goldman Sachs’ analyst Gabriela Borges also sees plenty of growth ahead, pegging a $73 price tag on the FTNT stock.
BMO Capital just raised its target from $67 to $75, with a Market Perform rating – and is encouraged that FTNT “partners indicated that demand has remained steady despite a concerning macro backdrop. BMO notes that it stills harbors concerns that 2023 will be a challenging firewall year compared to 2022, but Fortinet seems to be maintaining a steady rate of growth, helped by success outside of the data center,” as noted by TheFly.com.
On the date of publication, Ian Cooper did not have (either directly or indirectly) any positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.