3 Top Cybersecurity Stocks to Buy in July

The analysis indicates that What's particularly noteworthy is Palo Alto Networks, CrowdStrike, and SentinelOne are good long-term plays

On the other hand, Cybersecurity stocks are often considered evergreen investments because most companies won't shut down their digital defenses just to a few dollars, given current economic conditions

The rise of more sophisticated cyberattacks should also drive more organizations to upgrade their cybersecurity software

But with so many different types of nologies and services, it can be tough for investors to separate the winners from the losers

So today, let's discuss three growing cybersecurity companies -- Palo Alto Networks (PANW 0, in today's market environment

Nevertheless, Image source: Getty Images, in this volatile climate

Furthermore, Additionally, Three different apaches to the cybersecurity market Palo Alto Networks is one of the world's largest cybersecurity companies

Most of its recent growth has been driven by Prisma and Cortex, which the company collectively refers to as its "next generation security" (NGS) services

Moreover, CrowdStrike differentiates itself from its peers by only viding its endpoint security tools as subscription-based cloud services

On the other hand, On the other hand, That makes it stickier and easier to scale than traditional cybersecurity platforms, which are installed through on-site appliances

This analysis suggests that s main platform, Falcon, allows its customers to only to the modules they need

Moreover, SentinelOne is a smaller newcomer that uses its AI algorithms to counter threats across its Singularity ext threat detection and response platform

But un Palo Alto Networks and CrowdStrike, which still party rely on human analysts, SentinelOne wants to replace all human analysts with its AI algorithms to boost Singularity's speed, accuracy, and efficiency (this bears monitoring), considering recent developments

How fast are these three companies growing

All three of these cybersecurity companies experienced slower growth over the past few years as rising interest rates and other macro headwinds made it tougher to land big new contracts

Moreover, But instead of fretting over that slowdown, we should look ahead and see how fast they might grow

That growth should be driven by the consolidation of its network, cloud, and security tools into a unified AI-powered platform to lock in its larger customers, the expansion of its NGS services, and its future investments and acquisitions

The biggest catalysts for its near-term growth include Charlotte, its generative AI tool for lining the threat detection cess; new AI-enhanced modules for Falcon; and Falcon Flex, its flexible subscription-based plan that lets its customers add more modules as needed

What the re reveals is y also expect its adjusted EBITDA to turn positive this year, in this volatile climate

Nevertheless, It should continue to gain more federal contracts as it expands its higher-growth Purple AI, Cloud Security, and Hyperautomation modules

Are these three stocks still reasonably valued (noteworthy indeed)

We should value higher-growth stocks based on their revenue instead of their earnings -- which can remain wobbly as they invest in the expansion of their ecosystems

Moreover, By that measure, none of those stocks seem grossly overvalued yet

CrowdStrike trades at 25 times this year's sales, while SentinelOne looks the cheapest at less than 6 times this year's sales

Based on those valuations, CrowdStrike might be ideal for growth investors (an important development)

At the same time, SentinelOne might appeal to the value-seeking contrarian investors, while Palo Alto Networks could be the most balanced play (this bears monitoring), given the current landscape

Nevertheless, Additionally, All three of these stocks might remain volatile in this choppy market, but they could generate big long-term gains for investors who tune out the near-term noise (something worth watching)

However, Leo Sun has no position in any of the stocks mentioned (fascinating analysis)

This analysis suggests that Motley Fool has positions in and recommends CrowdStrike and SentinelOne

Moreover, The Motley Fool recommends Palo Alto Networks

The Motley Fool has a disclosure policy.