Jim Cramer Says These 10 Stocks Can Do Well Regardless of Who Wins

6. Palo Alto Networks, Inc. (NASDAQ:PANW)

Number of Hedge Fund Holders: 66

Cramer commented that Palo Alto Networks, Inc. (NASDAQ:PANW) is competitive with its peers and highlighted the rampant cyber crime that is occuring these days.

“Hey, speaking of hating to lose, the CEO of Palo Alto Networks, that’s Desh Aurora, and the CEO of CrowdStrike, that’s George Kurtz, are both extremely competitive. They know how to stop cybercrime better than anyone. I know it hurts our diversification efforts, but the Charitable Trust owns both these stocks because I’m a huge believer in cybersecurity and I’m not gonna be left behind by a great stock here. There’s so much crime happening online. These companies literally can’t handle all the business. Imagine that, I call that a high-quality problem.”

Palo Alto (NASDAQ:PANW) is one of the largest cybersecurity companies, offering a comprehensive range of security solutions. As cyber threats continue to escalate, it has positioned itself as a key player in the fight against cybercrime, a sector that, according to Cybersecurity Ventures, is expected to grow by 15% annually, reaching an annual cost of $10.5 trillion by 2025.

Nikesh Arora, the company’s chairman and CEO, highlighted in a recent appearance on Fortune’s Leadership Next podcast that the company covers approximately 80% of the cybersecurity landscape, a significant leap from the 10-15% share it had just six years ago. Arora also noted that cybersecurity, once a relatively overlooked area of technology, has now become a major focus for businesses as incidents like ransomware attacks have become increasingly frequent.

In fiscal 2024, Palo Alto (NASDAQ:PANW) generated $8 billion in total revenue, marking a 16% increase from the previous fiscal year. This growth reflects the ongoing demand for cybersecurity solutions, particularly in the area of next-generation security. The company’s annual recurring revenue from its platform-based customers surged by 43% in the final quarter of fiscal 2024, reaching $4.2 billion.

The company is optimistic about the future of its platform-based model. It expects that this revenue will more than triple to $15 billion by 2030, with a projected 3,500 of its top 5,000 customers expected to adopt this platform-based approach by then.