Stocks to buy

The Top 3 Cybersecurity Stocks to Buy in March 2024

Cybersecurity is an essential expense for many businesses. Software and professionals help to protect valuable files and data from hackers. There’s a lot of money in hacking, and a cyberattack can cost a company millions of dollars. These attacks can also erode customer trust.

Cybersecurity stocks benefit from these trends. These companies keep out the hackers and have vast addressable markets. Any business with an online presence needs some type of online security, and these three top cybersecurity stocks to buy can reward long-term investors.

Cloudflare (NET)

Source: IgorGolovniov /

Cloudflare (NYSE:NET) maintained high growth rates while other cybersecurity firms decelerated. The cybersecurity firm raised its revenue by 32% year-over-year in the fourth quarter of 2023 while trimming its net losses. That growth rate was in line with the company’s 33% year-over-year revenue growth rate for the full year of 2023.

Cloudflare is an essential cybersecurity software that many small businesses and corporations use to protect their websites and other digital assets. Over 189,000 paying customers rely on Cloudflare to stay protected.

Customers are also paying more to use the software. The company has a 40% compounded annual growth rate for customer contracts that exceed $100,000 in annual revenue. Cloudflare closed 2023 with 2,756 customers that pay more than $100,000 per year.

Investors looking to outperform have been happy with this stock. The cybersecurity firm is up by 63% over the past year and has gained 460% over the past five years. 

Fortinet (FTNT)

Source: Sundry Photography /

Fortinet (NASDAQ:FTNT) is more than 10% down from the all-time high it set in July. Growth has slowed down, but there are a few signs of optimism. 

One positive development was the recent acceleration in billings growth. Billings was up by 8.5% year-over-year in the fourth quarter of 2023. That’s an improvement from the 6% gain in Q3 2023. Q4 revenue was up by 10.3% year-over-year, while net income was down by 0.9% year-over-year.

Headwinds continue for Fortinet, but those setbacks have resulted in a more attractive entry point. The stock currently trades at a 46 P/E ratio, which is lower than most cybersecurity stocks. The company offers high net profit margins, and once growth returns, the stock can rebound nicely.

Investors are still up on their positions over the past year. Shares gained 16.8% during that time. However, the stock’s 339% increase over the past five years demonstrates the type of returns the stock can exhibit once growth rates improve.

Datadog (DDOG)

Source: Karol Ciesluk /

Datadog (NASDAQ:DDOG) has outperformed the stock market with a 69% gain over the past year and a near 5-year gain of 224%. Despite generating alpha for so long, Datadog’s best days can be ahead.

The cloud infrastructure company helps businesses stay on top of their cloud applications and cybersecurity resources. It’s an all-in-one dashboard that makes it easier for businesses to detect and address attacks before they become major.

Datadog exhibited solid growth with a 26% year-over-year revenue increase in the fourth quarter of fiscal 2023. The cybersecurity firm saw a large growth in the number of customers with annual contract values exceeding $1 million. 

The company started 2023 with 317 customers in this segment and closed the year with 396 customers who pay over $1 million per year. That’s a 24.9% year-over-year increase. Datadog also ended the year with 3,190 customers with annual recurring revenue above $100,000. Shares trade at a forward P/E ratio of 84 and have a 1.2 PEG ratio.

On the date of publication, Marc Guberti did not hold (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.

Marc Guberti is a finance freelance writer at who hosts the Breakthrough Success Podcast. He has contributed to several publications, including the U.S. News & World Report, Benzinga, and Joy Wallet.

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