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.
8. Super Micro Computer Inc. (NASDAQ:SMCI)
Number of Hedge Fund Holders: 45
Super Micro Computer Inc. (NASDAQ:SMCI) is a provider of accelerated compute platforms, offering application-optimized server and storage solutions for enterprise data centers, cloud computing, AI, 5G, and edge computing. Its diverse product portfolio includes Rackmount Servers, GPU Servers, Twin Servers, and Storage Servers, catering to a wide range of computing needs.
Following the resignation of its auditor, Ernst & Young, in late 2024 due to governance concerns, the company swiftly appointed BDO and initiated an internal review, which found no evidence of fraud or misconduct. With strong partnerships, including continued collaboration with NVIDIA, and a commitment to enhancing corporate governance, Super Micro Computer Inc. (NASDAQ:SMCI) is positioning itself to capitalize on the surging AI infrastructure demand.
Super Micro Computer Inc. (NASDAQ:SMCI) continues its strong growth trajectory, reporting preliminary Q2 FY25 revenue of $5.6-$5.7 billion, marking a 54% YoY increase. The company’s non-GAAP EPS is expected to land between $0.58-$0.60, reflecting 5% YoY growth, while GAAP EPS remains flat at $0.50-$0.52. CEO Charles Liang anticipates FY25 revenue in the range of $23.5-$25 billion, setting the stage for an ambitious $40 billion target in FY26.
7. Zscaler Inc. (NASDAQ:ZS)
Number of Hedge Fund Holders: 52
Zscaler Inc. (NASDAQ:ZS) is a cloud security company that provides a purpose-built, multi-tenant platform designed to enable secure access to cloud resources. Its cloud-native Zero Trust Exchange platform helps organizations securely connect users, workloads, and IoT/OT devices while enforcing business policies.
In February 2025, the company announced a strategic alliance with Ernst & Young LLP (EY US) to enhance security and simplify digital transformations through cloud-delivered services. Additionally, in January 2025, Zscaler Inc. (NASDAQ:ZS) introduced a Zero Trust network access service integrated within RISE with SAP, aimed at securing enterprise cloud migration efforts. These developments demonstrate Zscaler Inc. (NASDAQ:ZS)’s ongoing innovation, strategic partnerships, and commitment to strengthening cybersecurity frameworks.
Zscaler Inc. (NASDAQ:ZS) delivered Q1 FY25 results on Dec 02, 2024, reporting $628 million in revenue, a 26% year-over-year increase. The company’s GAAP net loss narrowed to $12.1 million, significantly improving from $33.5 million in Q1 FY24, while non-GAAP net income surged to $124.3 million, up from $86.4 million. Earnings per share (EPS) on a non-GAAP basis rose to $0.77, compared to $0.55 a year ago. The company also saw strong cash flow performance, with free cash flow reaching $291.9 million, compared to $224.7 million in the previous year.
On February 12, 2025, Mizuho analyst Gregg Moskowitz maintained a Neutral rating on the stock while raising the price target from $210 to $225.
6. Cloudflare Inc. (NYSE:NET)
Number of Hedge Fund Holders: 55
Cloudflare Inc. (NYSE:NET) is a global connectivity cloud company that provides a wide range of cloud services to businesses of all sizes. It offers an integrated suite of solutions, including security products like Web Application Firewall and Bot Management, as well as performance tools such as Content Delivery and Intelligent Routing. NET is among the best high growth stocks.
In recent months, Cloudflare Inc. (NYSE:NET) has been actively enhancing its services and addressing security concerns. In February 2025, the company introduced a feature that integrates Adobe’s Content Credentials system, enabling users to verify the authenticity and history of online images. Additionally, the company promptly addressed a vulnerability in its Mutual TLS implementation, ensuring the security of client-server connections. This reinforces the company’s commitment to cybersecurity.
Cloudflare Inc. (NYSE:NET) reported strong fourth-quarter 2024 financial results, with revenue reaching $459.9 million, up 27% year-over-year. The company improved operational efficiency, narrowing its GAAP net loss to $12.8 million from $27.9 million in Q4 2023, while non-GAAP net income rose to $68.8 million from $53.5 million. Operating cash flow surged to $127.3 million, a significant jump from $85.4 million in the prior year’s quarter, though free cash flow declined slightly to $47.8 million from $50.7 million.
Currently, 55 hedge funds within the Insider Monkey Q4 2024 database hold a position in the company.
5. Palantir Technologies Inc. (NASDAQ:PLTR)
Number of Hedge Fund Holders: 63
Palantir Technologies Inc. (NASDAQ:PLTR) is a leading software company focused on supporting counterterrorism investigations and operations. The company’s innovative solutions range from cloud-agnostic tools like Apollo to sophisticated intelligence analysis with Gotham and Foundry.
In December 2024, Palantir Technologies Inc. (NASDAQ:PLTR) entered a strategic partnership with Booz Allen Hamilton to accelerate innovation in defense missions. They combined their strengths in AI and cybersecurity to enhance secure data integration and analytics for the U.S. Department of Defense. In February 2025, the company saw a sharp decline in share value as market analysts speculated on the consequences of a proposed 8% annual reduction in the defense budget. This development could affect Palantir Technologies Inc. (NASDAQ:PLTR)’s lucrative contracts with the Department of Defense.
Palantir Technologies Inc. (NASDAQ:PLTR) had strong performance for the full fiscal year 2024, with total revenue growing 29% year-over-year to $2.87 billion. U.S. revenue saw impressive growth, up 38%, driven by a 54% increase in U.S. commercial revenue, which reached $702 million, and a 30% rise in U.S. government revenue, totaling $1.20 billion. The company generated $1.15 billion in cash from operations while adjusted free cash flow surged to $1.25 billion. PLTR is one of the best high growth stocks in the cybersecurity sector.
Loop Capital analyst Mark Schappel has initiated coverage on the stock with a Strong Buy rating and a price target of $141.
4. Elastic N.V. (NYSE:ESTC)
Number of Hedge Fund Holders: 64
Elastic N.V. (NYSE:ESTC) is a data analytics company that provides a robust cybersecurity platform to safeguard organizations against cyber threats. Its Elastic Search AI Platform enables security teams to detect and respond to risks in real time.
Elastic N.V. (NYSE:ESTC) recently released its 2024 Global Threat Report, analyzing over a billion data points to reveal rising cybersecurity threats. The report included the misuse of tools like Cobalt Strike and Metasploit by cyber criminals and the growing risks from misconfigured cloud environments. These findings highlight the company’s commitment to addressing key cybersecurity challenges. However, the company is also facing legal challenges. In February 2025, several law firms filed class action lawsuits against Elastic N.V. (NYSE:ESTC), alleging securities fraud for misleading investors between May 31, 2024, and August 29, 2024. These legal proceedings could impact the company’s stock price and investor sentiment moving forward.
Elastic N.V. (NYSE:ESTC) reported strong Q2 FY25 results with total revenue of $365 million, up 18% YoY, driven by a 25% YoY growth in Elastic Cloud revenue. The company achieved $64 million in non-GAAP operating income, while GAAP operating loss stood at $4 million. Non-GAAP EPS came in at $0.59, compared to $0.37 in Q2 FY24, reflecting stronger profitability. Operating cash flow was $38 million, showing stable liquidity, with cash and equivalents at approximately $1.2 billion. Customer growth remained steady, with over 1,420 customers holding contracts over $100K ACV, up from 1,220 a year ago.
3. Okta Inc. (NASDAQ:OKTA)
Number of Hedge Fund Holders: 72
Okta Inc. (NASDAQ:OKTA) is a leading independent identity provider offering secure, cloud-based identity solutions for businesses. Its Okta Identity Platform enables seamless integration with various applications, services, and cloud environments. OKTA is one of the best high growth stocks on our list.
In February, the company appointed Eric Kelleher as President and COO, a move aimed at strengthening its executive leadership as it focuses on scaling growth. Simultaneously, Okta Inc. (NASDAQ:OKTA) announced a workforce reduction of approximately 180 employees (3% of its workforce) as part of a broader restructuring effort to optimize resources and align with long-term priorities. These strategic shifts suggest the company is prioritizing operational efficiency and market leadership, positioning itself for sustained growth in the evolving cybersecurity landscape.
Okta Inc. (NASDAQ:OKTA) delivered a strong performance in its full-year fiscal 2024 results. Total revenue grew 22% YoY to $2.26 billion, with subscription revenue climbing 23% YoY to $2.21 billion. The company made notable progress in profitability, reporting a GAAP operating loss of $516 million, a marked improvement from the $812 million loss in fiscal 2023. Cash flow generation was a standout, with operating cash flow reaching $512 million (23% of revenue) and free cash flow at $489 million (22% of revenue), both showing massive gains from $86 million and $65 million, respectively, in fiscal 2023.
Barclays analyst Saket Kalia has maintained a Hold rating on the stock while raising the price target from $96 to $105, indicating a 15.54% upside from current levels.
2. CrowdStrike Holdings Inc. (NASDAQ:CRWD)
Number of Hedge Fund Holders: 77
CrowdStrike Holdings Inc. (NASDAQ:CRWD) is a global cybersecurity company that provides cloud-delivered protection for endpoints, cloud workloads, identities, and data. With 29 cloud modules offered via a SaaS subscription model, the platform spans multiple security markets, including endpoint and cloud workload security, threat intelligence, and identity protection. CRWD is one of the best high growth stocks on our list.
CrowdStrike Holdings Inc. (NASDAQ:CRWD) has been actively expanding its cybersecurity offerings and strategic initiatives in recent months. In February 2025, the company, in collaboration with Amazon Web Services (AWS) and supported by NVIDIA, announced the selection of 36 startups for its 2025 Cybersecurity Accelerator program, reinforcing its commitment to fostering innovation in AI-driven security solutions. Additionally, in January 2025 CrowdStrike Holdings Inc. (NASDAQ:CRWD) played a key role at the World Economic Forum in Davos, shaping global cybersecurity discourse.
CrowdStrike Holdings Inc. (NASDAQ:CRWD) reported third-quarter fiscal 2025 results on November 26, 2024. Total revenue grew 29% year-over-year to $1.01 billion, driven by a 31% increase in subscription revenue to $962.7 million. Annual Recurring Revenue (ARR) rose 27% to $4.02 billion, with $153 million in net new ARR. Cash flow from operations increased to $326 million, while free cash flow came in at $231 million, slightly down from $239 million in Q3 FY24.
77 hedge funds within the Insider Monkey Q4 2024 database hold a position in the company.
1. Datadog Inc. (NASDAQ:DDOG)
Number of Hedge Fund Holders: 83
Datadog Inc. (NASDAQ:DDOG) is a leading observability and security platform designed for cloud applications. The company’s suite of products can be used individually or as a unified solution, offering flexibility and scalability for businesses of all sizes.
In December 2024, the company introduced a modern cloud Security Information and Event Management (SIEM) solution, enhancing real-time threat detection and cost efficiency for enterprises. In February 2025, the company announced the opening of registration for its highly anticipated DASH 2025 conference, set for June 10-11 in New York, where industry leaders from Redfin, Toyota, and Volkswagen will discuss advancements in AI, security, and performance optimization.
Datadog Inc. (NASDAQ:DDOG) reported strong Q4 2024 financial results, with revenue reaching $738 million, marking a 25% year-over-year increase. The company generated $265 million in operating cash flow and $241 million in free cash flow, maintaining a robust balance sheet with $4.2 billion in cash. On the business front, Datadog Inc. (NASDAQ:DDOG) grew its $1 million+ ARR customers by 17% to 462, while its $100K ARR customers rose by 13% to 3,610. It is among the best high growth stocks on our list.
Citigroup analyst Fatima Boolani has maintained a Strong Buy rating on the stock while slightly lowering the price target from $170 to $165.
Overall Datadog Inc. (NASDAQ:DDOG) ranks first on our list of the high growth cybersecurity stocks to buy. While we acknowledge the potential for DDOG as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than DDOG but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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