5 Best Cybersecurity Stocks to Buy Now

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

Number of Hedge Fund Holders: 90

Palo Alto Networks, Inc. (NASDAQ:PANW) was incorporated in 2005 and is headquartered in Santa Clara, California. The company provides cybersecurity solutions worldwide. On September 19, Palo Alto Networks, Inc. (NASDAQ:PANW) announced that it is about to close a deal to acquire Israeli cybersecurity startup Apiiro for approximately $600 million. 

On September 16, MKM Partners analyst Catharine Trebnick initiated coverage of Palo Alto Networks, Inc. (NASDAQ:PANW) with a Buy rating and a $250 price target as part of a broader research note on the Cyber Security Software Sector. Palo Alto Networks, Inc. (NASDAQ:PANW) is her top pick in the industry, due to the company’s 75% revenue from subscription services, the analyst told investors. The analyst further cited Palo Alto Networks, Inc. (NASDAQ:PANW)’s land-and-expand strategy, that is adding value to Network Security, Prisma Cloud, and Security Operations. 

According to Insider Monkey’s second quarter database, 90 hedge funds were bullish on Palo Alto Networks, Inc. (NASDAQ:PANW), up from 87 funds in the prior quarter. David Blood and Al Gore’s Generation Investment Management is a prominent stakeholder of the company, with 733,482 shares worth $362.2 million. 

In its Q1 2022 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and Palo Alto Networks, Inc. (NYSE:PANW) was one of them. Here is what the fund said:

“The portfolio also saw solid performance from cybersecurity names Palo Alto Networks, Inc. (NYSE:PANW) which is gaining prominence as the risk of global cyber attacks increases as part of the Russian offensive. On an individual stock basis, leading contributors to absolute returns in the first quarter included positions in Palo Alto Networks.”