5 Best Cybersecurity Stocks to Buy Heading into 2023

1. Palo Alto Networks, Inc. (NYSE:PANW)

Number of Hedge Fund Holders: 103

Palo Alto Networks, Inc. (NYSE:PANW) is a leader in the cybersecurity market with a broad product portfolio, a proven track record of innovation, and a strong customer base. The company’s Next-Generation Firewall (NGFW) provides comprehensive security solutions to help customers protect their networks, applications, and data. The company has also been expanding into the cloud security and endpoint security markets, which offer additional growth opportunities. Furthermore, Palo Alto Networks, Inc. (NYSE:PANW) is well-positioned to benefit from the increasing global demand for cybersecurity solutions and is placed high on our rankings of the best cybersecurity stocks to buy now.

On November 17, Palo Alto Networks, Inc. (NYSE:PANW) posted strong earnings for the fiscal first quarter of 2022. The company reported an EPS of $0.83 and outperformed expectations by $0.14. The company’s revenue for the quarter amounted to $1.56 billion, up 25.33% year over year and ahead of revenue estimates by $12.21 million. On December 1, Redburn analyst Nina Marques took coverage of Palo Alto Networks, Inc. (NASDAQ:PANW) with a Buy rating and a $270 price target.

At the end of the third quarter of 2022, 103 hedge funds were eager on Palo Alto Networks, Inc. (NYSE:PANW) and held positions worth $4.20 billion. This is compared to 90 hedge funds in the preceding quarter with stakes worth $3.72 billion. The hedge fund sentiment for the stock is positive. As of September 30, Arrowstreet Capital was the largest investor in the company and held a position worth $464.2 million.

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