Here are 4 Cloud Security Stocks Investors Should Watch in 2025

Escalating threats of nation-state cyber warfare, ransomware extortion, rising malware attacks and security vulnerabilities due to poor implementation of multi-tenant public cloud environments have fueled the demand for advanced cloud security products.Artificial intelligence (AI)-based self-evolving malware attacks and the use of quantum computers in breaking traditional encryptions have pushed cloud security providers to up their game. These factors have given rise to a large cloud security market, which is expected to witness a CAGR of 9.1%, reaching $62.9 billion by 2028, per a report by MarketsAndMarkets.As the demand for advanced cloud security is on the rise, security providers are coming up with the latest breakthroughs like Zero-trust security models, AI, machine learning, new DevSecOps practices, Cloud Native Application Protection Platforms (CNAPP) and quantum-safe encryptions to match their adversaries.Despite numerous opportunities, the cloud security industry is facing challenges related to skill shortages and rising costs due to higher investments in research and development to match the rapidly evolving cyber threats. As this industry is largely dependent on software imports and exports, the recent tariff hikes also pose threats to cybersecurity players.Here’s How Cybersecurity Firms Stay Ahead of HeadwindsTo counter these gaps, leading cloud security vendors like Palo Alto Networks PANW, Check Point Software Technologies CHKP, SentinelOne S and Zscaler ZS, among others are implementing AI-based security solutions for proactive threat detection and response automation. They are also leveraging machine learning to analyze the behavioral patterns of users and send intelligent alerts if a deviation from the usual user behavior or any threat is detected.DevSecOps approach and CNAPP are getting popularized among organizations as security providers are promoting the integration of security into the software development lifecycle from the coding phase to the deployment phase in an attempt to minimize the scope of API vulnerabilities and cloud misconfigurations.Implementation of Zero-trust security measures that limit network access, continuously verify the reliability of the user accessing the network, and use AI to analyze real-time user behavior are also gaining traction among organizations.This ongoing battle between malicious actors and cybersecurity firms ensures continuous growth in the sector, presenting investors with significant opportunities to maximize returns by investing in the right companies.4 Cloud Security Stocks to Watch in 2025Palo Alto Networks entered into the cloud security space with its Code to Cloud platform, Prisma Cloud. Prisma Cloud’s recent FedRAMP authorization has enabled PANW to attract a growing number of federal agencies that need to meet the required security standards set by the U.S. government.PANW also enhanced its Prisma Cloud platform by introducing Prisma Cloud Copilot, which leverages generative AI to simplify security analysts' tasks. This feature enables analysts to understand and respond to user queries in natural language more efficiently.Furthermore, in 2025, PANW launched the next version of Prisma Cloud, namely Cortex Cloud. Notably, Cortex Cloud builds upon Prisma and combines CNAPP with cloud detection and response features. The Cortex Cloud solution offered by this Zacks Rank #3 (Hold) company integrates third-party threat detection scanners, AI task prioritization, single-action risk mitigation, and a unified Cortex XDR agent to enrich PANW’s cloud security offerings. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.The Zacks Consensus Estimate for PANW’s fiscal 2025 earnings is pegged at $3.22, indicating year-over-year growth of 13.4%.Palo Alto Networks, Inc. Price and Consensus Palo Alto Networks, Inc. price-consensus-chart | Palo Alto Networks, Inc. QuoteFind the latest EPS estimates and surprises on Zacks Earnings Calendar.Checkpoint is benefiting from the rapid adoption of its cloud security solutions specializing in network security, cloud posture management, cloud application security and cloud identity and access security under its CloudGuard solution.This Zacks Rank #3 company recently launched Quantum Firewall Software R82. This software deploys the latest AI engines, post-quantum encryption and accelerated DevOps to protect against phishing, malware, and domain name system attacks.CHKP’s Infinity platform which provides security across the cloud, network and endpoint was recently updated with new AI features, including Quantum Policy Insights, Quantum Policy Auditor and Infinity Identity. These new features now enable CHKP’s clients to automate policy analysis and recommendation, implement centralized identity and access control across different security environments and integrate third-party applications, including Microsoft Entra ID, Okta and Ping Identity for enhanced features.The Zacks Consensus Estimate for fiscal 2025 earnings is pegged at $9.93, indicating year-over-year growth of 8.4%.Check Point Software Technologies Ltd. Price and Consensus Check Point Software Technologies Ltd. price-consensus-chart | Check Point Software Technologies Ltd. QuoteSentinelOne provides CNAPP, Cloud Workload Security and AI-based Security Posture Management solutions through its Singularity Cloud. The company has enabled numerous organizations to protect their virtual machines, containers, Kubernetes clusters, and serverless functions through Singularity.SentinelOne recently launched Purple AI, which serves as an advanced AI security analyst that responds to security alerts without human intervention and guides human analysts through post-attack investigations.This Zacks Rank #3 company recently introduced Singularity AI SIEM, a cloud-based security system that uses AI and automation to help Security Operations Centers (SOCs) detect and respond to threats faster. It collects and analyzes security data in real time, making it easier to investigate issues and automate responses.The Zacks Consensus Estimate for SentinelOne’s fiscal 2026 earnings is pegged at 17 cents, indicating a year-over-year increase of 240%.SentinelOne, Inc. Price and Consensus SentinelOne, Inc. price-consensus-chart | SentinelOne, Inc. QuoteZscaler entered into the world of cloud security with its Zero Trust Exchange platform. In recent times, Zscaler enhanced its cloud security offerings by implementing new Data Security Posture Management measures that discover shadow AWS accounts automatically and identify excessive data access permission by using AI. The data obtained from this process further helps security teams to limit access and remove shadow accounts, making their cloud systems more transparent.The Zacks Rank #3 company also introduced several enhancements to its GovCloud offerings to comply with the stringent security requirements of government agencies. Government agencies using Zscaler’s cloud security offerings can now use AI-powered Cloud Browser Isolation and IPv6 for secure connectivity. The enhancement in GovCloud is expected to attract federal clients.The Zacks Consensus Estimate for Zscaler’s fiscal 2025 earnings is pegged at $3.06, indicating a year-over-year decline of 4.1%. Zscaler, Inc. Price and Consensus Zscaler, Inc. price-consensus-chart | Zscaler, Inc. Quote5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Check Point Software Technologies Ltd. (CHKP): Free Stock Analysis Report SentinelOne, Inc. (S): Free Stock Analysis Report Palo Alto Networks, Inc. (PANW): Free Stock Analysis Report Zscaler, Inc. (ZS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks