In this article, we will discuss the 10 High Growth Cybersecurity Stocks To Buy.
The cybersecurity industry is experiencing unprecedented growth, fueled by increasing cyber threats, the expansion of cloud computing, and the adoption of artificial intelligence (AI) in security measures. According to Cybersecurity Ventures, global cybercrime damages are projected to reach $10.5 trillion annually by 2025, up from $3 trillion in 2015, making cybersecurity one of the most critical industries in the digital age. As cyberattacks grow in frequency and sophistication, businesses, governments, and individuals are investing heavily in security solutions to mitigate risks.
Market Expansion and Demand Surge
The global cybersecurity market is expected to grow from $172.24 billion in 2023 to $562.72 billion by 2032, reflecting a compound annual growth rate (CAGR) of approximately 14.3%, according to a report by Fortune Business Insights. This rapid expansion is driven by increased spending across industries, particularly in sectors such as finance, healthcare, and government, where data protection is paramount.
The demand for cybersecurity solutions is further accelerated by the rise of ransomware attacks. Ransomware attacks have significantly increased in recent years, with 2024 marking a record high of 5,263 incidents—the highest volume observed since 2021 according to a new report from cybersecurity consulting firm, NCC Group. Major corporations and critical infrastructure have been targeted, with some ransomware payments reaching tens of millions of dollars. For instance, Colonial Pipeline paid $4.4 million in Bitcoin after a devastating cyberattack in 2021, underscoring the necessity for robust security defenses.
Cloud Security Spending
Cloud security spending is also seeing exponential growth. According to Gartner, global information security end-user spending is projected to total $212 billion in 2025, marking a 15.1% increase from $183.9 billion in 2024. The integration of artificial intelligence (AI) into cloud infrastructures is a significant factor contributing to increased cloud security spending. A recent survey in the 2025 Cloud & AI Index indicates that 89% of U.S. IT decision-makers plan to boost their cloud budgets in 2025, primarily to support AI workloads
Cybersecurity Talent Shortage
A severe talent shortage remains a challenge in the cybersecurity industry. According to the 2023 ISC2 Cybersecurity Workforce Study, the global cybersecurity workforce reached 5.5 million professionals, an 8.7% increase from the previous year. Despite this growth, the study identified a workforce gap of 4 million professionals needed to adequately defend organizations’ critical assets. Given this, we will take a look at some of the best high growth stocks from the cybersecurity sector.
Our Methodology
To compile a list of the 10 High Growth Cybersecurity Stocks To Buy, we first utilized a stock screener to identify companies with a market capitalization exceeding $2 billion and a minimum 20% revenue growth over the past five years. From this selection, we then narrowed down the top 10 stocks based on the level of hedge fund interest. These stocks have been ranked in according to hedge fund sentiment as of Q4 2024.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
10. Tenable Holdings Inc. (NASDAQ:TENB)
Number of Hedge Fund Holders: 38
Tenable Holdings Inc. (NASDAQ:TENB) is a cybersecurity company specializing in exposure management solutions that help organizations identify and mitigate security risks across complex IT environments. Its solutions provide visibility into vulnerabilities, misconfigurations, compliance violations, and other security threats.
In January, the company announced the unfortunate passing of its Chairman and CEO, Amit Yoran, a key figure in its growth and leadership. Despite this transition, Tenable Holdings Inc. (NASDAQ:TENB) remains focused on innovation and expansion, as evidenced by its recent acquisition of Vulcan Cyber in February. This acquisition strengthens its exposure management capabilities by integrating advanced risk prioritization and remediation solutions.
Tenable Holdings Inc. (NASDAQ:TENB) delivered strong financial results in Q4 2024, reporting revenue of $235.7 million, an 11% year-over-year increase. The company demonstrated significant profitability improvements, with GAAP income from operations at $13.0 million, reversing a $14.3 million loss in Q4 2023. Cash flow generation was also strong, with net cash from operations reaching $81.1 million, more than double the $38.5 million in Q4 2023.
Currently, 38 hedge funds within the Insider Monkey Q4 2024 database hold a position in the company.
9. Rapid7 Inc. (NASDAQ:RPD)
Number of Hedge Fund Holders: 45
Rapid7 Inc. (NASDAQ:RPD) is a global cybersecurity software and services provider specializing in threat detection, response, and exposure management. Its expertise spans security operations, cloud management, IT, and development teams, helping organizations take control of their attack surfaces.
Rapid7 Inc. (NASDAQ:RPD) continues to strengthen its cybersecurity portfolio with key strategic advancements in early 2025. The company launched the Global PACT Partner Program in February, expanding its partner ecosystem to enhance security solutions for a broader customer base. In January, the company’s InsightGovCloud Platform achieved FedRAMP In Process status, reinforcing its commitment to providing secure solutions for federal agencies.
Rapid7 Inc. (NASDAQ:RPD) reported solid full-year 2024 financial results, with revenue reaching $844 million, a 9% increase year-over-year, driven by $809 million in product subscription revenue. The company posted a GAAP operating income of $35 million and a non-GAAP operating income of $164 million. Cash flow remained strong, with $154 million in free cash flow, up from $104 million for 2023, highlighting efficient cost management.
On February 13, 2025, Citigroup analyst Fatima Boolani maintained a Buy rating on the stock but lowered the price target from $46 to $44.