Stocks to buy

Finding the most promising cybersecurity stocks can be simple if you look in the right places. The global cybersecurity market is one of the fastest growing industries in the world. Industry growth is expected to accelerate, as corporations ramp up spending in artificial intelligence, network and cloud security. 

Global cybersecurity spending is projected to grow 13% in 2023, to $219 billion (IDC, 2023). This spending will not slow down anytime soon as malware attacks and security breaches continue to rise across industries. With that in mind, investors should carefully consider the risks and opportunities. 

There are a lot of cybersecurity companies on the market, and many of them still remain unprofitable. While revenue growth and TAM should be a factor, FCF and profitability is key to achieve outsized returns. With cyber crimes on the rise, these three cybersecurity stocks have significant growth potential that investors should not ignore. 

Below are my top three promising cybersecurity stocks to buy right now!

Cisco Systems (CSCO)

Source: Ken Wolter /

Cisco Systems (NASDAQ:CSCO) is up more than 10% YTD on the back of strong Q4 and FY fiscal 2023 earnings results. The stock has been stagnant throughout the past five years, but 2023 proved that Cisco is embracing the cloud security and AI race. Revenue for FY 2023 increased to $57 billion, up 11% year-over-year. 

Cisco is also seeing robust FCF growth, up nearly 50% to $19 billion in 2023. Their most recent Q4 fiscal 2023 highlights show an increased attention on maintaining existing customer accounts. This focus translates to increased operating leverage, allowing them to gain market share in new and existing markets. 

In Q4 2023, revenue rose 16% year-over-year to $15.2 billion. GAAP EPS (earnings per share) was up 43% YOY. Cisco may be at a key inflection point in their business, as operating cash flow was up 62% in Q4 2023.Their long-term growth strategy is working, and they are eager to capitalize on the market opportunities in cloud security. On September 21, 2023, Cisco announced the acquisition of cloud security software company Splunk. The all-cash deal was valued at approximately $28 billion. 

The acquisition is expected to be cash flow positive, accelerate revenue growth and further establish Cisco as a leader in AI-powered cloud security. With the AI race in full effect, Cisco is the top cybersecurity stock to buy for 2023. 

Fortinet (FTNT)

Source: Sundry Photography /

Fortinet (NASDAQ:FTNT) investors weren’t too pleased with the company’s Q2 2023 financial results. The stock plunged 25%, after minor revisions to its FY 2023 forecasts. However, the company still saw strong YOY improvements in both its top and bottom line. Fortinet Q2 2023 revenue grew to $1.29 billion, up 29% YOY. GAAP EPS was up 57%, driven by strong gross billing volume growth. 

The company is a leading supplier of cybersecurity fabric and network cloud security. Fortinet’s goal is to consolidate their products and cross sell to their customers as cybersecurity spending ramps up. They are executing on all cylinders and CEO, Ken Xie, is confident in the company’s positioning to ‘’consolidate vendors and point products.’’ Furthermore, Fortinet has seen tremendous FCF and EPS growth throughout the last decade. Despite downward revisions to its FY 2023 forecasts, growth is expected to continue. 

Fortinet FCF has grown from $133.5 million in 2013, to nearly $1.5 billion in 2022. During the same period, EPS has risen more than 2,000%. Revenue for FY 2023 is projected to rise more than 20% YOY. The company also forecasts NON GAAP EPS in the $1.49 – $1.53 range. 

As cyber crimes continue to rise in 2023, Fortinet is one of the best cybersecurity stocks to buy. 

Crowdstrike Holdings (CRWD)

Source: VDB Photos /

Crowdstrike Holdings (NASDAQ:CRWD) should be on your radar as one of the most promising cybersecurity stocks to buy for 2023. Throughout the last decade, Crowdstrike has seen explosive revenue growth thanks to their flagship Falcon cloud security platform. Revenue for the FY 2022 grew to $2.24 billion, up 54% YOY. FCF also grew to $677 million, up 53%. 

For the past few years, profitability for the company has not been a main focus. The company has placed an emphasis on investing in new and existing technologies, as well as expanding into international markets. For the FY 2022, Crowdstrike’s customers that have purchased four or more modules was up 69% YOY. The Falcon platform continues to win over its customers as they look to consolidate vendors. 

Their increased focus on improving their flagship Falcon platform will continue to pay dividends well into the future. The introduction of the Falcon XDR module to integrate AI and machine learning will leverage real-time threat detection, increase endpoint detection and speed up response times. 

Now, the company is putting increased focus on profitability. For fiscal Q2 2024, Crowdstrike saw net income of $8.5 million, compared to a net loss of $49.3 million for fiscal Q2 2023. The company also delivered record FCF in the quarter of $189 million. FCF has grown substantially from a measly $12.5 million in 2019, to $677 million at the end of fiscal 2022. 

With profitability being a key driver, Crowdstrike is among the most promising cybersecurity stocks to buy for 2023.  

On the date of publication, Terel Miles did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines.

Terel Miles is a contributing writer at, with more than seven years of experience investing in the financial markets.