In today's era of booming digital advancements that enhance efficiency and cut costs for businesses, cybersecurity stands out as critical. Hence, investors could scoop up shares of fundamentally stable cybersecurity stocks, CyberArk Software Ltd. (CYBR), Fortinet, Inc. (FTNT), and Trend Micro Incorporated (TMICY) that are safeguarding the digital realm.
Cyber threats continue to be quite apparent in a business's day-to-day operations. However, mostly small and medium-sized ones that do not have a robust cybersecurity backup experience the worst of it. Over 30,000 new vulnerabilities were disclosed in the past year, indicating a 17% year-over-year increase.
To counteract this grave situation, companies have actively started investing in cybersecurity measures to reduce both financial and data-related losses. According to a 2024 survey, 30% of business and technology executives expected their company's cyber budget to increase between 6 and 10% in 2025, with 77% of respondents anticipating their organization's cybersecurity budget to increase in 2025.
According to a study by Fortune Business Highlights, the global cybersecurity market is forecasted to reach $562.72 billion by 2032, growing at a CAGR of 14.3%. This robust growth showcases the loads of opportunities present in the sector for investors to capitalize on.
So, let us dive deep into the fundamentals of three Software – Security stocks, starting with #3.
Stock #3: CyberArk Software Ltd. (CYBR)
Headquartered in Petah Tikva, Israel, CYBR develops, markets, and sells software-based identity security solutions and services. Its offerings include Privileged Access Manager, Vendor Privileged Access Manager, Dynamic Privileged Access, Endpoint Privilege Manager and Secure Desktop.
On February 4, 2025, CYBR announced a new integration with SentinelOne, Inc.’s (S) AI-powered cybersecurity platform, SentinelOne Singularity, aimed at strengthening security against privileged access misuse, detecting and preventing ransomware, accelerating response and mitigation, and maintaining user productivity.
By utilizing the power of AI to bring together the complementary strengths of EDR and endpoint identity security, the company is enhancing its offerings and driving demands for its products.
On January 30, 2025, CYBR launched Identity Bridge, an endpoint identity security capability aimed at supporting identity and privilege sprawl reduction on Linux machines. Including Linux machines in its modernization of Identity and Access Management (IAM) showcases the company's commitment to enhancing its users' endpoint security and reducing access-related cyber risk across the board.
For the fiscal 2024 third quarter that ended September 30, 2024, CYBR’s total revenues increased 25.6% year-over-year to $240.10 million. Its non-GAAP operating income rose 109.5% from the year-ago value to $35.36 million.
Moreover, the company’s non-GAAP net income and non-GAAP net income per share increased 130.2% and 123.8% year-over-year to $45.14 million and $0.94, respectively.
Analysts expect CYBR’s revenue for the fiscal 2024 fourth quarter (ended in December 2024) to increase 35.1% year-over-year to $301.46 million. Moreover, its revenue for the fiscal 2025 first quarter ending in March is forecasted to increase 35.8% year-over-year to $300.78 million. The company has also surpassed the consensus revenue and EPS estimates in all four trailing quarters.
Shares of CYBR have surged 40% over the past six months and 64.1% over the past nine months to close the last trading session at $383.24.
CYBR’s POWR Ratings mirror its fundamentals. CYBR has an A grade for Growth and a B for Sentiment and Quality. The POWR Ratings are calculated by considering 118 different factors, with each factor weighted to an optimal degree.
Within the B-rated Software – Security industry, CYBR is ranked #10 out of 20 stocks.
In addition to the POWR Rating highlighted above, you can check CYBR’s ratings for Stability, Momentum, and Value here.
Stock #2: Fortinet, Inc. (FTNT)
FTNT provides cybersecurity and convergence of networking and security solutions. The company provides secure networking solutions, network firewall solutions, hyperscale and distributed firewalls, as well as encrypted applications, wireless LAN solutions, and secure connectivity solutions.
On February 6, 2025, FTNT announced the launch of FortiGate 70G, FortiGate 50G, and FortiGate 30G, the latest G series of next-generation firewalls. Aimed at meeting the evolving demands of the technology industry, the new launch strengthens FTNT's portfolio by offering industry-leading security with unmatched performance.
On December 4, 2024, FTNT announced impressive ratings from CyberRatings.org, the industry's only independent third-party cybersecurity testing nonprofit. The company received a "AAA" rating, showcasing its commitment to delivering advanced and effective security for the hybrid workforce.
For the fiscal 2024 fourth quarter that ended December 31, 2024, FTNT’s total revenue increased 17.3% year-over-year to $1.66 billion. Its non-GAAP operating income rose 43.5% from the year-ago value to $650.90 million.
Additionally, the company’s non-GAAP net income and non-GAAP net income per share grew 45.8% and 45.1% from the prior year’s quarter to $571.50 million and $0.74, respectively.
Street expects FTNT’s revenue and EPS for the fiscal 2025 first quarter ending in March to increase 13.9% and 24.3% year-over-year to $1.54 billion and $0.53, respectively. Moreover, the company has surpassed the consensus revenue and EPS estimates in all four trailing quarters, which is impressive.
Shares of FTNT have surged 56.7% over the past six months and 87.7% over the past nine months to close the last trading session at $109.18.
FTNT’s POWR Ratings reflect its robust prospects. The stock has an overall rating of B, equating to a Buy in our proprietary rating system.
FTNT has an A grade for Quality and a B for Sentiment. Within the Software - Security industry, FTNT is ranked #7 out of 20 stocks.
In addition to the POWR Rating highlighted above, you can check FTNT’s ratings for Growth, Value, Momentum, and Stability here.
Stock #1: Trend Micro Incorporated (TMICY)
Headquartered in Tokyo, Japan, TMICY develops and sells security-related software for computers and related services. It provides its Vision One platform, attack surface management, extended detection and response (XDR), cloud security, endpoint security, network security, email security, and more.
On January 7, 2025, TMICY announced a collaboration with Intel Corporation (INTC) aimed at helping joint enterprise customers’ security of critical systems against stealthy threats, including fileless malware and advanced ransomware. The integrated solution offers better detection of encryption behavior and ensures appropriate action is taken to protect critical systems.
On December 11, 2024, TMICY announced its exceptional scores in the latest round of the MITRE ATT&CK® Evaluations. The company achieved a 100% coverage rate in its evaluations. These results solidify the company’s advanced portfolio of cyber security solutions and establish itself as a market leader in the industry.
For the fiscal 2024 third quarter that ended September 30, 2024, TMICY’s net sales increased 10.3% year-over-year to JPY 202.66 billion ($1.33 billion). Its operating income rose 32.5% from the year-ago value to JPY 39.24 billion ($258.17 million).
Moreover, net income attributable to owners of the parent and net income per share grew 106.3% and 111.6% from the prior year’s quarter to JPY 26.42 billion ($173.82 million) and JPY 197.38, respectively.
The consensus revenue and EPS estimates of $1.71 billion and $1.73 for the fiscal year that ended in December 2024 reflect a year-over-year rise of 208.3% and 231.3%, respectively.
The company’s stock has surged 9.2% over the past three months and 25.6% over the past nine months, ending the last trading session at $59.97.
TMICY’s strong fundamentals are mirrored in its POWR Ratings. The stock has an overall rating of A, which translates to a Strong Buy in our proprietary rating system.
TMICY has a B grade for Quality, Growth, and Stability. Within the same industry, TMICY is ranked #3 out of 20 stocks.
Click here to access TMICY’s Value, Momentum, and Sentiment ratings.
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FTNT shares were trading at $109.04 per share on Tuesday morning, down $0.51 (-0.47%). Year-to-date, FTNT has gained 15.41%, versus a 3.19% rise in the benchmark S&P 500 index during the same period.
About the Author: Aritra_Gangopadhyay
Aritra is a financial journalist dedicated to breaking down complex financial topics into simple, actionable insights. Holding a Master’s degree in Economics, he uses his analytical expertise to help investors uncover unique opportunities for long-term success.
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