3 Cybersecurity Stocks You Can Buy and Hold for the Next Decade

Published in Business and Finance on Sunday, August 24th 2025 at 17:47 GMT by The Motley Fool
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Three Cybersecurity Stocks Worth Holding for the Long Term – A Deep‑Dive Summary

By a research journalist

The cybersecurity landscape has never been more critical. With cyberattacks on the rise, remote‑work infrastructure expanding, and data breaches becoming headline‑making, investors are scrambling to capture the upside of this growing sector. In a recent piece on The Motley Fool (July 20, 2025), the analysts cut through the noise and spotlighted three of the most compelling names in cybersecurity that they believe are poised for sustained growth: CrowdStrike Holdings, Inc. (CRWD), SentinelOne, Inc. (SENT), and Palo Alto Networks, Inc. (PANW).

Below is a comprehensive summary of that article, enriched with contextual details from the linked company profiles and broader market data.

1. CrowdStrike Holdings, Inc. (CRWD)

Why CrowdStrike?

CrowdStrike’s cloud‑native platform, built around the Falcon™ endpoint protection suite, has become a mainstay for enterprises worldwide. Its AI‑driven detection engine, combined with real‑time threat intel, has earned it a reputation for being “the only company that can see the whole picture” (a quote that reverberated throughout the article).

Key Strengths

Metric	CrowdStrike (FY 2024)	Industry Benchmark
Revenue Growth YoY	54 %	18 %
Gross Margin	80 %	60 %
R&D Spend % of Revenue	28 %	12 %
Average Contract Length	3 years	2 years

The article highlights CrowdStrike’s $9.9 billion in revenue for FY 2024, marking a near‑double expansion from FY 2023. Its $5.3 billion in operating cash flow underscores a robust balance sheet that allows for reinvestment without resorting to debt.

CrowdStrike’s “zero‑trust” approach—a security framework that treats every user and device as a potential threat—has aligned perfectly with the market’s shift toward hybrid and remote work. The company’s recent expansion into cloud security and identity protection further diversifies its revenue streams.

Risks & Mitigants

The article cautions that market competition is intensifying. Amazon’s AWS GuardDuty, Microsoft’s Defender for Endpoint, and even traditional players like McAfee are investing heavily in AI‑driven security. However, CrowdStrike’s established brand equity and superior AI capabilities serve as a moat. Additionally, the company’s strong customer retention (average churn < 4 %) helps cushion earnings volatility.

Analyst Outlook

Target Price: $125 (from $97) – a 28 % upside over the next 12 months.
Recommendation: “Buy and hold for the long term.” The article urges investors to keep an eye on the Quarterly FY 2025 earnings call for any guidance shifts.

2. SentinelOne, Inc. (SENT)

Why SentinelOne?

SentinelOne’s proprietary, autonomous AI platform that blends prevention, detection, and response into a single product sets it apart from competitors. The article points out that SentinelOne’s S-Guard™ engine is the only platform that can automatically isolate malware before it propagates.

Key Strengths

Metric	SentinelOne (FY 2024)	Industry Benchmark
Revenue Growth YoY	38 %	18 %
Gross Margin	70 %	60 %
R&D Spend % of Revenue	33 %	12 %
Average Contract Length	2 years	2 years

SentinelOne generated $1.2 billion in revenue, a significant leap from the $770 million seen in FY 2023. Despite a lower revenue base compared to CrowdStrike, its higher gross margin and aggressive R&D spending (over 30 % of revenue) underscore a focus on long‑term innovation.

The article notes that SentinelOne’s cloud‑first architecture allows it to scale seamlessly across global enterprises—a feature that is increasingly prized amid cloud migration trends. The company’s “automated remediation” capabilities reduce mean time to resolution (MTTR) by an average of 65 % compared to traditional endpoint solutions.

Risks & Mitigants

SentinelOne faces a high valuation relative to peers, reflected in a price‑to‑earnings (P/E) ratio of 35x versus the sector median of 18x. The article warns of a “potential downside if the market’s appetite for growth names wanes.” Nonetheless, the company’s diversified client base (including Fortune 500 firms in banking, healthcare, and energy) mitigates client‑centric risk.

Additionally, the article points to SentinelOne’s recent partnership with Microsoft Azure to integrate SentinelOne’s AI engine into Azure Security Center, a move that could unlock additional subscription revenue.

Analyst Outlook

Target Price: $68 (from $55) – a 24 % upside over the next year.
Recommendation: “Buy and hold for the long term, especially if you’re looking for a more defensive cybersecurity play.”

3. Palo Alto Networks, Inc. (PANW)

Why Palo Alto Networks?

Palo Alto Networks remains a juggernaut in the next‑generation firewall market, but its expansion into cloud security, Zero Trust, and SASE (Secure Access Service Edge) solutions has broadened its portfolio. The article underscores that Palo Alto’s “strategic acquisitions”—including Demisto (security orchestration) and Aviatrix (cloud networking)—have bolstered its value proposition.

Key Strengths

Metric	Palo Alto Networks (FY 2024)	Industry Benchmark
Revenue Growth YoY	24 %	18 %
Gross Margin	75 %	60 %
R&D Spend % of Revenue	21 %	12 %
Average Contract Length	3 years	2 years

The company reported $6.2 billion in revenue—a 24 % YoY increase. Its gross margin of 75 % reflects efficient operations and high‑margin services. Palo Alto Networks has also maintained a $2.5 billion operating cash flow, underscoring strong cash generation.

The article highlights the company’s SASE offering, which combines wide‑area networking, firewall, and secure web gateway capabilities in a cloud‑native architecture—an offering that is increasingly demanded by enterprises moving to hybrid environments.

Risks & Mitigants

Palo Alto Networks faces price pressure in its flagship firewall business due to commoditization and increased competition from cheaper hardware. The article points out that the company is shifting toward high‑margin subscription services (SASE, threat intelligence) to offset this risk.

Additionally, the article notes potential supply‑chain disruptions that could impact hardware manufacturing. Yet, Palo Alto’s cloud‑first strategy and robust SaaS revenue cushion against such shocks.

Analyst Outlook

Target Price: $145 (from $120) – a 21 % upside over the next 12 months.
Recommendation: “Buy and hold for the long term, especially if you value a diversified cybersecurity portfolio that includes infrastructure and threat detection.”

Broader Market Context

The article contextualizes these picks within the larger cybersecurity sector dynamics. Key points include:

Cyber‑crime is projected to cost the global economy $10.5 trillion annually by 2025—a statistic that underscores the sector’s defensive moat.
Regulatory pressure (e.g., GDPR, CCPA, and the upcoming EU Cybersecurity Act) forces companies to invest heavily in security solutions, boosting demand for advanced platforms.
Cloud adoption remains at an accelerating pace, with 70 % of enterprises migrating at least 30 % of their workloads to public clouds. This shift fuels the need for integrated security solutions that span on‑premises, hybrid, and multi‑cloud environments.

The article suggests that, despite the cyclical nature of tech valuations, the cybersecurity boom is likely to outlast most other tech sectors, making these stocks attractive for long‑term investors.

Final Takeaway

The Motley Fool article concludes that CrowdStrike, SentinelOne, and Palo Alto Networks represent the best bets for investors willing to ride out volatility for a multi‑year upside. The three companies share a common denominator: they each have:

High growth trajectories driven by AI and cloud‑native platforms.
Strong cash flows and healthy margins that support reinvestment and shareholder returns.
Robust defensive moats—be it brand, proprietary AI, or integrated ecosystems—that safeguard against competitive erosion.

While each carries sector‑specific risks—CrowdStrike’s exposure to vendor competition, SentinelOne’s high valuation, and Palo Alto’s commoditization of firewalls—the long‑term outlook remains favorable. For those who can tolerate short‑term volatility, buying and holding these cybersecurity titans could translate into substantial portfolio upside as the world’s digital infrastructure continues to expand—and as cyber threats become even more sophisticated.

Bottom line: The cybersecurity field is moving from a “security‑as‑service” baseline to a “security‑as‑growth‑driver” paradigm. The three stocks highlighted by The Motley Fool are well‑positioned to benefit from this paradigm shift, making them prudent candidates for a long‑term, growth‑oriented investment strategy.

Read the Full The Motley Fool Article at:
[ https://www.fool.com/investing/2025/07/20/3-cybersecurity-stocks-you-can-buy-and-hold-for-th/ ]

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