As technology continues to shape our world, the digital realm has become both a catalyst for progress and a hotbed for security threats. 2025 presents a formidable cybersecurity landscape defined by escalating risks and a rapidly evolving threat matrix. This environment poses significant challenges for individuals, businesses and governments, demanding robust solutions to safeguard digital resilience.Cyber threats are now more diverse and sophisticated than ever, ranging from ransomware attacks and supply-chain vulnerabilities to the exploitation of zero-day flaws. Cybercriminals now wield advanced tools, targeting critical infrastructure and networks with precision.
The interconnected digital ecosystem, fueled by artificial intelligence (AI), the Internet of Things (IoT) and expanded remote work models, has significantly widened the attack surface. This complexity makes defending against these threats increasingly challenging, especially as geopolitical tensions and state-sponsored cyber espionage heighten risks globally.
Generative AI (GenAI) is both a revolutionary tool and a double-edged sword in the cybersecurity domain. While its applications promise transformative innovations, GenAI also amplifies the scale of threats. Cybercriminals now exploit large language models (LLMs) to execute large-scale social engineering attacks with unprecedented precision. By 2027, Gartner predicts that GenAI will be implicated in 17% of all cyberattacks, underscoring the urgent need for enhanced cybersecurity measures.
This evolving threat necessitates increased investment in securing AI-driven technologies. Organizations are channeling resources into application security, data privacy and infrastructure protection to counteract the vulnerabilities introduced by GenAI. As a result, cybersecurity spending is projected to grow significantly, with Gartner forecasting a 15% rise in global end-user security spending in 2025.
The surge in cyber risks has elevated the role of cybersecurity as a fundamental pillar for protecting sensitive information and critical infrastructure. Organizations are turning to innovative solutions to bolster their defenses, paving the way for firms specializing in advanced security technologies to thrive in this challenging environment.
Here, we have picked four stocks — Fortinet, Inc. FTNT, Zscaler, Inc. ZS, Qualys, Inc. QLYS and Okta, Inc. OKTA — that are strategically positioned to ride the waves of a challenging security landscape in 2025. These stocks have a favorable combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or #2 (Buy).
The Growth Style Score condenses all the essential metrics from a company’s financial statements to get a true sense of the quality and sustainability of its growth. Per Zacks’ proprietary methodology, stocks with a combination of a Zacks Rank #1 or #2 and a Growth Score of A or B offer solid investment opportunities.
Fortinet is a provider of network security appliances and Unified Threat Management (“UTM”) network security solutions to enterprises, service providers and government entities worldwide. The stock currently sports a Zacks Rank #1 and has a Growth Score of B. You can see the complete list of today’s Zacks #1 Rank stocks here.
Fortinet’s rich experience in the security space and continued delivery of mission-critical solutions will help it maintain and grow its market share in the cybersecurity space. Moreover, the growing adoption of Software-Defined Wide Area Network (SD-WAN) solutions could be a key growth driver for Fortinet in the long run. Continued deal wins, especially those of high value, are a key driver. The focus on enhancing its UTM portfolio through product development and acquisitions is a tailwind.
The Zacks Consensus Estimate for 2025 earnings has been revised upward to $2.35 per share from $2.17 per share over the past 60 days.
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