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3 Cybersecurity Stocks You Can Buy and Hold for the Next Decade

July 9, 2025
07:00 AM
4 min read
AI Enhanced
investmentmoneystocksfinancialtechnologycloud servicesmarket cyclesseasonal analysis

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More than ever, es and individuals rely on nology. Whether it's websites, apps, smartphones and cloud services, or using smart devices, our collective digital foot is expanding fast. Unfortunately, this growth...

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investment

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July 9, 2025

07:00 AM

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investmentmoneystocksfinancialtechnologycloud servicesmarket cyclesseasonal analysis

More than ever, es and individuals rely on nology

Whether it's websites, apps, smartphones and cloud services, or using smart devices, our collective digital foot is expanding fast

Unfortunately, this growth creates risk from cyberattacks

People still fall for phishing s or for s from sophisticated scam artists

Remote work has gotten more common in recent years, opening more doors for online thieves to hack into a

Image source: Getty Images

This is why the cybersecurity industry is growing by leaps and bounds

Grand View Re estimates that the global cybersecurity market was $245. 6 billion in 2024, and is expected to increase to just over $500 billion by 2030

That indicates a compound annual growth rate (CAGR) of 12

So there's plenty of money for investors to make in cybersecurity, and some outstanding cybersecurity stocks that you can buy today and hold on for the next decade

Let's take a look at three pure-play cybersecurity stocks that I think make a lot of sense right now

Pure-play pick No. 1: Palo Alto Networks Palo Alto Networks (PANW 0. 97%) is the largest pure-play cybersecurity firm in the world

The company reported $5 billion in annual recurring revenue (ARR) from its next-generation security platform, up 34% from a year ago, as more customers are looking for firewalls, cloud security tools, and artificial intelligence (AI)-powered threat detection solutions

In addition, the rapid expansion of artificial intelligence ducts is generating more spending on cybersecurity ducts, as CEO Nikesh Arora told analysts in the company's most recent earnings call: What's fascinating is this is actually creating a higher sense of urgency among our customers to undertake their nology transformation, transformations that require a fundamental change in your infrastructure

Traditional IT architectures weren't built for the scale, speed, or complexity of AI

To truly capitalize on AI's potential, enterprises need modern, cloud-dered platforms that can ingest vast amounts of data and operate in real-time at scale

We've seen customers who were previously delaying their cloud migrations are now reaccelerating their investment

This is good news for cybersecurity

Earnings for its fiscal 2025's third quarter ( April 30) included revenue of $2. 3 billion, up 15% from a year ago

Palo Alto's guidance calls for total year revenue in a range from $9. 17 billion to $9. 19 billion

Pure-play pick No. 2: CrowdStrike CrowdStrike (CRWD 1. 12%) is best known for its endpoint security system

Using AI, CrowdStrike's Falcon platform is designed to stop threats in real time on laptops, servers and mobile devices

The company vides 30 modules on its Falcon platform, so clients can customize the types of tection they want

Nearly half of all CrowdStrike customers use more than six modules, the company says, and 22% of them use eight or more

The company is in a strong financial position, with revenue in the first quarter of fiscal 2026 at $1. 1 billion, up 20% from a year ago

CrowdStrike reported ARR of $4. 44 billion, up 22% from last year

Its full-year guidance calls for revenue between $4. 74 billion and $4. 8 billion, and earnings per in a range from $3

In addition, CrowdStrike authorized a repurchasing gram of up to $1 billion in CrowdStrike stock, although it didn't say when the transactions would occur

Pure-play pick No. 3: Zscaler If I were running an IT department, I would be so cautious cybercrime that I would trust nobody

That's kind of where Zscaler (ZS 1. 31%) comes in

Zscaler is known for what's called zero-trust architecture

That means that the cybersecurity gram assumes nothing is safe, even if it's already inside the network

That's particularly important with the growth of remote or hybrid workforces

The company's ducts are used by nearly 45% of all Fortune 500 organizations, and cesses more than 500 billion transactions every day

Zscaler also expanded its foot in May by announcing a deal to buy Red Canary, a cybersecurity company that vides managed detection and response services, for $675 million

Zscaler will integrate Red Canary's sophisticated agentic AI nology into the Zscaler platform

That should help strengthen Zscaler's capabilities even more

Revenue for its fiscal 2025's third quarter included $678 million in revenue, up 23% from a year ago

Full-year guidance shows revenue in a range from $2. 659 billion to $2. 661 billion, and earnings in a range from $3

Patrick Sanders has no position in any of the stocks mentioned

The Motley Fool has positions in and recommends CrowdStrike and Zscaler

The Motley Fool recommends Palo Alto Networks

The Motley Fool has a disclosure policy.