Cybersecurity is a hot topic with the pace of attacks growing, the costs multiplying, and opportunities abundant for cybersecurity companies. Estimated to triple by 2027, the cybersecurity market will top $10.50 trillion, with much spending concentrated on a few names.
Leading providers like Palo Alto Networks (NASDAQ:PANW), CrowdStrike (NASDAQ:CRWD), and Fortinet (NASDAQ:FTNT) will be among the winners and are getting the attention of analysts today. These stocks are among the most loved by analysts, ranking in the top 15 Most Upgraded Stocks for 2025 and the three most upgraded in their industry. With cyber threats expected to accelerate, trends supporting their business and analysts' sentiment will continue to drive higher stock prices.
1. Palo Alto Networks Is the Leading Cybersecurity Provider
Palo Alto Networks is the largest cybersecurity provider in terms of market cap and revenue. It is in the process of platformization, unifying its products into a single, easier-to-use format and producing results faster than anticipated. Neither revenue nor earnings growth were impacted as much as feared, and leverage is building, including increased client count and deepening service penetration, to help sustain above-forecast growth in 2025.
Regarding the analysts, Palo Alto Networks garnered 82 positive mentions in 2024, including upgrades and price target revisions. The 43 analysts tracked by MarketBeat rate the stock with a consensus of Moderate Buy and see it trading at a new high in 2025. The consensus target aligns with the current high, but the revision trend is positive and leads to the high-end range of nearly $240, a gain of 22% from 2024’s closing price.
Palo Alto’s valuation is a concern, but the growth outlook offsets it. The stock trades at 50x next year’s earnings, but earnings are expected to sustain a mid-teen CAGR for at least two years. The long-term forecast is for earnings growth to accelerate near the end of this decade and sustain the higher pace well into the next, bringing the valuation down into the more reasonable low-20x range. 
2. CrowdStrike’s Centralized Falcon Platform Gives It an Advantage
CrowdStrike is less than half the size of Palo Alto Network but is quickly growing its business. In F2025, the growth pace is slowing sequentially and year over year but sustaining a high 30% pace. Growth is expected to continue in F2026 in the 20% range. F2025 results also include outperformance driven by large client growth and service penetration. Clients can use CRWD cybersecurity modules plug-and-play, quickly building upon the base services as needed.
Among CrowdStrike’s advantages is the cloud-native Falcon platform, which centralized its offerings from the start. Falcon allows for fast and easy deployment, provides superior performance, and has a low impact on end-point devices. While not technically a zero-trust service, its services align with the zero-trust framework, making CrowdStrike an integral part of a comprehensive, enterprise-quality, zero-trust solution.
Regarding analysts, MarketBeat tracks 43 analysts who issued 82 positive mentions for the stock in 2024. CrowdStrike is ranked in 8th position overall and second for Most Upgraded cybersecurity Stocks. The analysts peg it as a Moderate Buy and see it trading in the $365 to $450 region in 2025. 
3. Fortinet’s Zero-Trust Offerings Are Easy to Use and Cost-Effective
Fortinet is among the top five cybersecurity stocks by market cap and revenue, growing at a low-double-digit pace in F2024. Results are underpinned by client growth and service penetration and are better than analysts' forecasts. Growth is expected to accelerate incrementally in F2025 and continue to drive superior profitability. Among Fortinet’s attractions is its industry-leading profitability. It is the third Most Upgraded Cybersecurity Stock of 2024.
Fortinet’s CQ3 2024 GAAP and adjusted operating margins are more than double its competitors, driving substantial cash and free cash flow. At the end of Q3, the balance sheet highlights include a cash build and increased current and total assets partially offset by increased liability. The company carries debt but is net cash, leverage is low, and equity is rising. Equity, a measure of shareholder value, turned positive during the quarter and is expected to grow in 2025. 