3 Top Cybersecurity Stocks to Buy in February

If determination was ever an opportunistic clip to lukewarm up to cybersecurity stocks, it could beryllium now. The 3 largest exchange-traded funds (ETFs) specializing successful cybersecurity investments are each trading little successful caller months, down betwixt 3% and 24% implicit the past year. The marketplace has moved 14% higher successful that time.

The satellite isn't getting immoderate safer online. Demand continues to beryllium strong, and there's plentifulness of that maturation to spell around. I judge that SentinelOne (NYSE: S), CrowdStrike (NASDAQ: CRWD), and Palo Alto Networks (NASDAQ: PANW) are the apical 3 cybersecurity stocks to bargain this month. Let's instrumentality a person look astatine 3 companies that are inactive posting double-digit top-line maturation contempt the market's caller deficiency of involvement successful playing on with cybersecurity ETFs.

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With trailing gross maturation of 24%, SentinelOne is the fastest-growing subordinate connected this database implicit the past year. Surprisingly, it's besides the cybersecurity banal fetching the lowest gross multiple. With a cash-heavy equilibrium expanse trimming its marketplace headdress of $4.5 cardinal to an endeavor worth of $3.9 billion, you tin bargain SentinelOne astatine an endeavor worth that is conscionable 4 times trailing revenue. Compare that to CrowdStrike and Palo Alto Networks, which commercialized astatine trailing multiples of 21 and 11, respectively.

SentinelOne has been an aboriginal person successful integrating AI into its business. SentinelOne's Singularity level leans connected AI to detect, prevent, and respond to cyberattacks. Despite its rising business, SentinelOne is trading astatine hardly a 3rd of the 2021 archetypal nationalist offering (IPO) terms of $35.

There's nary escaped lunch. SentinelOne has a agelong past of losing wealth and the weakest margins -- by acold -- among these 3 cybersecurity stocks. However, aft its stock terms was chopped astir successful fractional implicit the past year, it's a beardown campaigner for the strongest turnaround. At the precise least, its increasing business, valuation discount to peers, and aboriginal AI enactment marque it a imaginable buyout opportunity.

CrowdStrike was a marketplace darling until a headline-grabbing outage successful the summertime of 2024 made it celebrated for each the incorrect reasons. Remember that precocious July time 2 years ago, erstwhile galore hospitals, airlines, banks, and different businesses suffered captious downtime owed to a tech snafu? That was a CrowdStrike update that wreaked havoc.