10 Best Performing Cybersecurity Stocks in 2024

6. CrowdStrike Holdings, Inc. (NASDAQ:CRWD)

Year-to-Date Performance as of November 8: 33.67%

Number of Hedge Fund Holders: 69

CrowdStrike Holdings, Inc. (NASDAQ:CRWD) specializes in cybersecurity solutions, offering products like identity management, threat intelligence, and detection. Its primary offering, the AI-native Falcon platform, achieved impressive growth at 80% year-over-year in the second quarter of fiscal 2025.

Earlier this July, a faulty software update by CrowdStrike Holdings, Inc. (NASDAQ:CRWD) triggered widespread technology outages across multiple industries, causing the company’s shares to plunge nearly 44% within two weeks, bottoming out in early August. Despite this setback, CrowdStrike’s stock has been on a steady recovery, though it hasn’t yet returned to its pre-incident highs. Investor sentiment around the company has turned optimistic, with 34 Wall Street analysts rating the stock a Buy and only six as Hold.

CrowdStrike’s strong fiscal second quarter of 2025, which ended shortly after the incident, fueled much of this optimism. The company reported a 32% year-over-year revenue increase and turned an operating profit compared to a loss in the same period the prior year. Net income per share rose to $0.19 from just $0.03 a year earlier. While Falcon’s performance continues to drive subscriptions, the company’s executives are targeting $10 billion in annual recurring revenue by the end of fiscal 2029, a goal that looks achievable as it focuses on margin improvements.

ClearBridge Growth Strategy stated the following regarding CrowdStrike Holdings, Inc. (NASDAQ:CRWD) in its Q3 2024 investor letter:

“Shares of CrowdStrike Holdings, Inc. (NASDAQ:CRWD), a global cybersecurity leader, came under pressure following a software content update in July that caused widespread disruptions across its client base. Importantly, the outage was not caused by a security breach and we are encouraged that the company was swift and transparent in its response and support for customers. While some level of recompense will be required, after ongoing dialogue with company management, we are optimistic that thoughtful remediation efforts, such as offering flexibility around new module uptakes, will position the company well for future growth. Shares have since rebounded on the back of better than feared channel feedback, which suggests CrowdStrike remains a best-in-class provider in the eyes of customers.”