As cyber threats continue to escalate amid digital transformation, cloud adoption, and AI advancements, cybersecurity companies are experiencing increasing demand for their solutions. With this in mind, we compare three leading cybersecurity stocks—Zscaler (ZS), CrowdStrike (CRWD), and CyberArk Software (CYBR)—to determine which has the highest potential for upside, according to Wall Street analysts.
Zscaler (NASDAQ: ZS)
A key player in the zero-trust security sector, Zscaler has seen mixed performance, with its stock declining 17% over the past year but rebounding about 9% year-to-date. The company benefits from strong demand for its Zero Trust Exchange platform and AI-powered security solutions.
In its Q1 FY25 earnings report, released in December 2024, Zscaler exceeded expectations. However, the company’s Q2 FY25 guidance signaled a slowdown in revenue growth due to heightened competition. Despite this, management remains confident in its growth strategy, driven by improved go-to-market execution and ongoing innovation.
Zscaler is set to announce its Q2 FY25 earnings on March 5. Analysts project an EPS of $0.69, a 9% decline year-over-year, while revenue is expected to rise by 21% to $634.4 million.
Analyst Sentiment:
Ahead of the earnings release, Stifel analyst Adam Borg reaffirmed a Buyrating with a $235 price target, citing mid-quarter strength and positive sales momentum. Overall, Zscaler holds a Strong Buyconsensus from Wall Street, with an average price target of $230.64, indicating a 17.5% upside potential.
CrowdStrike (NASDAQ: CRWD)
Despite facing a major service outage in 2024, CrowdStrike has demonstrated resilience, with its stock climbing 21%over the past year. The company delivered strong Q3 FY25 results in November, exceeding expectations and raising guidance.
In response to the outage, CrowdStrike introduced customer commitment packages with discounts and incentives to secure long-term contracts. While this could impact short-term revenue, it is expected to enhance customer retention.
The company will report its Q4 FY25 earnings on March 4, with analysts forecasting an EPS of $0.86(-9% YoY) and revenue of $1.03 billion(+22% YoY).
Analyst Sentiment:
Rosenblatt’s Catharine Trebnick recently raised her price target from $385 to $450and maintained a Buyrating, citing strong customer confidence and continued adoption of CrowdStrike’s security modules. Wall Street maintains a Strong Buyconsensus on CRWD stock, with an average price target of $438.24, implying a 12.5% upside potential.
CyberArk Software (NASDAQ: CYBR)
A leader in identity security, CyberArk recently posted strong Q4 2024 results, with annual recurring revenue surging 30% YoY. Looking ahead, the company expects revenue growth between 31% and 32%for 2025, fueled by acquisitions of Venafiand Zilla Securityand the expansion of its AI-driven CORA AIsecurity platform.
CyberArk has also strengthened its market position through partnerships, including a collaboration with Accentureto capitalize on the emerging Agentic AIsecurity opportunity. Management has set a goal of reaching $2 billionin subscription revenue by 2028, up from $977 millionin 2024.
Analyst Sentiment:
Following CyberArk’s Investor Day, TD Cowen analyst Shaul Eyal reiterated a Buyrating with a $450price target, citing the company’s $80 billion total addressable marketand strategic expansion efforts. Wall Street overwhelmingly supports CYBR, with 30 Buy ratings and just one Hold, giving it a Strong Buyconsensus. The stock’s average price target of $455.21implies the highest upside potential at 25.1%.
Which Cybersecurity Stock Has the Most Upside?
While all three stocks show strong growth potential, analysts suggest CyberArk (CYBR) offers the highest upside, with a projected 25.1% gain, followed by Zscaler (17.5%) and CrowdStrike (12.5%). Investors looking to capitalize on the expanding cybersecurity sector may find CyberArk particularly compelling given its aggressive growth strategy and expanding market opportunities.
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