The current market conditions show cybersecurity stocks as market space holders who need to buckle up for the upcoming opportunities. The market increased by 14% during the last year, yet the top cybersecurity exchange-traded funds (ETFs) experienced losses between 3% and 24%. Also, the Cyber threats continue to operate at full capacity.

Daily news reports include hacks, ransomware, and data breaches, which creates a situation where this market dip functions as an opportunity instead of a danger signal.

The three companies that operate at double-digit growth rates that investors are currently overlooking and should buy this month is; SentinelOne, CrowdStrike, and Palo Alto Networks.

SentinelOne

SentinelOne demonstrates its status as being the fastest expanding company among the three competitors, because it achieved 24% revenue growth during the past 12 months, along with maintaining a market valuation that seems extremely undervalued.

The stock operates at an enterprise value of approximately $3.9 billion and a market cap of $4.5 billion, which results in a trading multiple of four times its historical revenue. Also, this shows a major price difference when compared to CrowdStrike and Palo Alto Networks.

The Singularity platform of the company uses artificial intelligence as its primary method to identify and eliminate security threats, which positions SentinelOne as an early developer of automated security solutions.

However, the company needs to achieve profitability before it can succeed in its business, because its operations require substantial financial resources. The company operates with negative cash flow, as it operates with the lowest profit margins among its entire industry group.

The current market situation shows all the elements of a high-risk investment, because its shares were nearly cut in half over the past few years, and it now trades at a value that is significantly lower than its initial public offering prices. However, it exists as an asset and has the potential that may attract takeover bids from larger companies.

CrowdStrike

CrowdStrike understands what it means to achieve public recognition through unfavorable circumstances. The technology industry experienced its most severe crisis when a summer 2024 operational failure brought hospitals, airlines, and banks to a complete halt during a basic system upgrade.

The stock price has increased by 50% since that event. The company has experienced slow revenue growth for six quarters, but still it has a 22% current annual growth rate, which represents strong performance within its industry.

CrowdStrike customers maintain their positive view of the company, according to its current customer support. The Falcon platform maintains its strong presence in enterprise IT systems, because one major incident cannot destroy the trust established over multiple years, which leads to customers needing security solutions.

Palo Alto Networks

Palo Alto Networks achieves slower growth than its younger competitors, but the company maintains unusual financial success through its cybersecurity operations, and brings in profit.

The company maintains trailing revenue growth at 15%, which keeps it within the teens club range, while it operates with double digit net margins, and a market value of $111 billion.

Palo Alto provides extensive security solution options, as it holds the market leadership position and offers services to multiple customers that brings in stability.

Investors who seek stable cybersecurity stocks with low volatility should consider Palo Alto Networks, which serves as the closest thing to a blue-chip cybersecurity company in the current market.

Bottom Line

The current public interest in cybersecurity has decreased, but its fundamental principles remain intact, while their need for implementation has increased. SentinelOne offers shifting potential at a bargain price, CrowdStrike brings resilience and brand strength, and Palo Alto Networks delivers steady profits with fewer surprises.

The stock market currently shows high demand for new trends, but February represents an ideal time to invest in these stocks, because upcoming security breaches will refocus attention on digital defense.