Buy 3 Cybersecurity Stocks Ahead of Cyber Monday for Long-Term Gains

Cyber Monday is a major marketing event on the first Monday after Thanksgiving Day in the United States. Online retailers usually offer special promotions, discounts, and sales on this day as brick-and-mortar stores do on Black Friday.

In the United States, Cyber Monday is the second-biggest shopping day and the biggest day for online sales. This year, the event falls on Dec 2. However, an online network can run efficiently if its security measures remain rock solid.  

In this regard, we recommend three cybersecurity behemoths for long-term investment purposes to reap maximum benefits. These are Fortinet Inc. (FTNT Quick QuoteFTNT - Free Report) , Datadog Inc. (DDOG Quick QuoteDDOG - Free Report) and Palantir Technologies Inc. (PLTR Quick QuotePLTR - Free Report) .

Cybersecurity Space Provides a Long-Term Opportunity

Cybersecurity encompasses comprehensive security measures designed to protect systems, networks, and programs from digital attacks. These attacks often aim to access, alter, or destroy sensitive information, extort money from users through ransomware, or disrupt the integrity of normal business operations. 

The widespread adoption of AI, IoT devices, and increased digitization across both public and private sectors has heightened vulnerabilities and expanded attack surfaces, necessitating the development of advanced security solutions. This space focuses on companies that offer integrated protection against evolving security threats while simplifying IT security infrastructure. 

These firms provide solutions to safeguard applications, networks, and cloud computing environments. Their offerings include application-specific integrated circuits, hardware architecture, operating systems, and associated security and networking functions, ensuring robust defenses against cyberattacks.

3 Cybersecurity Stocks to Buy for Long-Term Gains

These three stocks have strong growth potential for the rest of 2024 and 2025. They have seen positive earnings estimate revisions in the last 30 days. Each of our picks currently carries ether a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Fortinet Inc.

Fortinet’s third-quarter results reflect strength in demand from large enterprise customers and growth in its security subscriptions amid a slowdown in networking products, along with challenges in sales execution and marketing efficiency. Continued deal wins, especially those of high value, are a key driver for FTNT. 

Higher IT spending on cybersecurity is further expected to aid FTNT in growing faster than the security market. The focus on enhancing FTNT’s unified threat management portfolio through product development and acquisitions is a tailwind. 

Excellent Earnings Estimate Revisions for FTNT Stock

Zacks Rank #1 Fortinet has an expected revenue and earnings growth rate of 11% and 33.7%, respectively, for the current year. For 2025, FTNT has an expected revenue and earnings growth rate of 12% and 6.1%, respectively. The Zacks Consensus Estimate for current-quarter, next-quarter, current-year and next-year earnings has improved over the last 30 days.

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Datadog Inc.

Datadog’s third-quarter 2024 top line benefited from strength in customer demand for offerings in modern observability, cloud security, software delivery and cloud service management. DDOG had 3,490 customers with an annual run rate of $100K or more at the end of the quarter. 

DDOG’s dollar-based retention rate was in the mid-110s in the third quarter as customers increased their usage and adopted more products. Contributions from a solid cloud partner base, including Google Cloud, Microsoft Azure and Amazon Web Services, remain the key growth drivers for FTNT besides an expanding portfolio.

Impressive Earnings Estimate Revisions for DDOG Stock

Zacks Rank #2 Datadog has an expected revenue and earnings growth rate of 24.9% and 32.6%, respectively, for the current year. For 2025, DDOG has an expected revenue and earnings growth rate of 20.1% and 10%, respectively. The Zacks Consensus Estimate for current-quarter, next-quarter, current-year and next-year earnings has improved over the last 30 days.

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Palantir Technologies Inc.

Palantir Technologies builds and deploys software platforms for the intelligence community to assist in counterterrorism investigations and operations in the United States, the United Kingdom, and internationally. 

Of late, PLTR’s commercial business has gathered pace beside its traditional government contracts. This was primarily due to PLTR’s aggressive venture in the AI space. Last year, Palantir Technologies launched its Artificial Intelligence Platform (AIP), an AI-powered system that helps customers quickly concentrate and analyze data and discover how it can help advance their business goals. 

AIP provides unified access to open-source, self-hosted, and commercial large language models that can transform structured and unstructured data into LLM-understandable objects and turn organizations' actions and processes into tools for humans and LLM-driven agents.

PLTR Shares Witness Robust Earnings Estimate Revisions

Zacks Rank #2 Palantir Technologies has an expected revenue and earnings growth rate of 26.6% and 52%, respectively, for the current year. For 2025, PLTR has an expected revenue and earnings growth rate of 24.5% and 24.6%, respectively. The Zacks Consensus Estimate for current-quarter, next-quarter, current-year and next-year earnings has improved over the last 30 days.

Image Source: Zacks Investment Research