Cyberattacks are only continuing to rise, hitting small businesses and major household names alike. In fact, they cost around $9.5 trillion globally each year, and this number is expected to increase by another trillion dollars in 2025. The rise of generative AI is increasing the risks, but it can also be used to combat cyber threats. Two cybersecurity companies with a heavy focus on AI are having a moment right now.
Tenable (NASDAQ: TENB)
Tenable has historically focused on vulnerability management. Its Nessus platform is both the most accurate and the most widely used tool for vulnerability assessment. The company has recently released a new suite of cybersecurity products, all fully integrated into Nessus, that are specifically tailored to different industries. Its ExposureAI model, launched last year, has the largest bank of exposure data in the industry, giving it an advantage that could launch Tenable into market leadership. With more than $900 million in revenue this year and a forward price-to-sales (P/S) ratio of just 5.6, it’s also an excellent buy.
Zscaler (NASDAQ: ZS)
Zscaler’s Zero Trust Exchange helps companies solve one of the biggest problems with remote work: How do managers know if the person signing in is really the person who is authorized, or a bad actor with stolen credentials? The Zero Trust Exchange assumes every login attempt is potentially hostile. It analyzes a host of data, including location and device, before allowing a remote login to connect. It also provides access only to the apps for which each employee has authorization, rather than the entire network.
Zscaler is still relatively small, but it’s growing rapidly. The company’s revenue is up more than 30% this fiscal year, and its third quarter non-GAAP profit is up by about 86% YOY. Its forward P/S ratio is currently 14.2, making the company a great choice for investors.
Neither Lisa Fritscher nor Stocks.News have positions in either of these companies.
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Contributing Writer
Lisa Fritscher has been a contributing writer for App.Stock.News since 2024. Lisa has been interested in investing since winning The Stock Market Game in high school. In more than a decade as a professional writer, she has written consumer-facing financial information and advice articles for a wide variety of publications. She has a Bachelor of Arts in Psychology from the University of South Flori...