Since the COVID-19 pandemic, remote work has become the norm across industries, but this shift has created many cybersecurity challenges. The widespread use of personal devices, unsecured home networks, and lack of proper monitoring have expanded the attack surface, making remote employees more vulnerable to phishing attacks, malware infections, and data breaches.
As organizations rush to fortify their security infrastructure, investors could find robust opportunities in Fortinet, Inc. (FTNT), Check Point Software Technologies Ltd. (CHKP), and Okta, Inc. (OKTA). These companies are poised to benefit from the growing demand for cloud security solutions.
Cyber threats continue to escalate, with research revealing that over 30,000 vulnerabilities were disclosed last year, up 17% from previous figures. The widespread adoption of remote work and cloud-based operations has expanded attack surfaces, making endpoints and data flows prime targets for cybercriminals.
According to CHKP’s 2025 Security Report, global cyber-attacks have surged 44% year-over-year, with Infostealer attacks rising by 58% as hackers exploited bring-your-own-device (BYOD) environments. Meanwhile, the proliferation of generative AI (GenAI) in cyber-attacks has introduced new challenges, from deepfake scams to automated phishing campaigns.
As companies integrate AI-driven cybersecurity solutions, spending on application security, data privacy, and infrastructure protection is expected to grow. Gartner estimates global information security spending will increase by 15.1% year-over-year to $212 billion in 2025. Moreover, the global cloud security market is forecasted to reach $75.26 billion by 2030, growing at a CAGR of 13.1%.
So, let us dive deep into the fundamentals of three Software – Security stocks, starting with #3.
Stock#3: Okta, Inc. (OKTA)
OKTA is an identity partner that offers products and services for managing and securing identities, including Single Sign-On, Adaptive Multi-Factor Authentication, API Access Management, Access Gateway, and Okta Device Access.
On January 28, 2025, OKTA announced a multi-year partnership with the McLaren Formula 1 Team, strengthening its position as a leader in digital identity and security. The collaboration allows OKTA to showcase its technology globally by securing and enhancing access to McLaren’s apps and platforms for fans, partners, and employees.
Over time, the company will further optimize McLaren Racing’s digital infrastructure, security capabilities, and operational efficiency, demonstrating its ability to protect high-performance organizations.
On November 26, 2024, OKTA launched its Customer Identity Cloud, designed to enhance security for GenAI applications. This solution improves data protection and compliance by simplifying the adoption of secure identity standards, expanding the company’s reach in the rapidly growing AI-driven technology sector. Further, this expansion strengthens OKTA’s leadership in digital identity while unlocking new growth opportunities.
During the fiscal 2025 third quarter, which ended on October 31, 2024, OKTA’s total increased by 13.9% year-over-year to $665 million. Its non-GAAP gross profit rose 14.4% from the year-ago value to $541 million. The company’s non-GAAP net income amounted to $121 million and $0.67 per share, indicating an increase of 53.2% and 52.3% year-over-year, respectively.
Analysts expect OKTA’s revenue and EPS for the fiscal 2025 fourth quarter that ended in January 2025, to increase 10.6% and 16.9% year-over-year to $669.10 million and $0.74, respectively. Additionally, the company surpassed the consensus revenue and EPS estimates in all four trailing quarters, which is impressive.
Shares of OKTA have surged 25.4% over the past three months and 15.9% over the past year to close the last trading session at $97.
OKTA’s POWR Ratings reflect its fundamentals. OKTA has an A grade for Growth and a B for Sentiment. The POWR Ratings are calculated by taking into account 118 different factors, with each factor weighted to an optimal degree.
Among 20 stocks in the B-rated Software – Security industry, OKTA is ranked #11. To access OKTA’s Value, Momentum, Stability, and Quality ratings, click here.
Stock #2: Fortinet, Inc. (FTNT)
FTNT provides cybersecurity and convergence of networking and security solutions worldwide. The company offers secure networking solutions focusing on the convergence of networking and security, network firewall solutions, wireless LAN solutions, and secure connectivity solutions.
On December 03, 2024, FTNT launched FortiAppSec Cloud, a cloud-delivered platform that integrates web application security, API protection, bot defense, and load balancing into a single offering. As enterprises increasingly adopt multi-cloud environments, demand for integrated security solutions is rising, positioning the company for potential revenue growth and market expansion.
On November 15, the company announced a $15 million investment in a new 215,000-square-foot Innovation Hub in Atlanta, Georgia. The facility will serve as a FortiCloud Point of Presence, Executive Briefing Center, Training Facility, and Support Center, enhancing customer engagement and technological development. This expansion not only increases FTNT’s U.S. presence but also boosts brand visibility and strengthens client relationships, supporting long-term business growth.
For the fourth quarter of 2024, which ended on December 31, FTNT’s total revenues increased 17.3% year-over-year to $1.66 billion. Its gross profit rose 22.4% from the year-ago value to $1.35 billion. Its non-GAAP operating income stood at $650.90 million, up 43.5% year-over-year, while its non-GAAP net income amounted to $571.50 million, representing an increase of 45.8% from the last year. Also, the company’s non-GAAP net income per share for the quarter increased 45.1% year-over-year to $0.74.
Street expects FTNT’s revenue for the fiscal first quarter (ending March 2025) to increase 13.9% year-over-year to $1.54 billion. Moreover, its EPS estimate of $0.53 for the same period indicates a 24.3% year-over-year growth. In addition, it surpassed the consensus EPS estimates in each of the trailing four quarters, which is excellent.
FTNT shares have surged 81.2% over the past nine months to close the last trading session at $107.66.
FTNT’s bright prospects are reflected in its POWR Ratings. The stock has an A grade for Quality and a B for Sentiment. Within the same B-rated industry, it is ranked #7 out of 20 stocks.
Beyond what is stated above, we’ve also rated FTNT for Growth, Value, Momentum, and Stability. Get all FTNT’s ratings here.
Stock #1: Check Point Software Technologies Ltd. (CHKP)
Headquartered in Tel Aviv, Israel, CHKP offers a wide range of products and services for IT security globally. It provides multilevel security, cloud, network, endpoint protection, IOT solutions, and threat prevention technologies to enterprises, service providers, Small and Medium-Sized Businesses (SMBs), and consumers.
On February 4, 2025, CHKP introduced new capabilities for its Infinity Platform to enhance zero-trust security, improve threat prevention, and simplify security operations. The AI-powered innovations address challenges in hybrid environments, where manual security management often creates vulnerabilities and inefficiencies.
Additionally, in November 2024, the company launched the Quantum Firewall Software R82, designed to counter rising cyber threats using AI-driven threat prevention against zero-day attacks, phishing, and malware. The new firewall also improves DevOps agility and scalability for data centers.
Such advancements in threat prevention and operational efficiency could drive stronger adoption among enterprises, boosting CHKP’s competitive edge in the evolving cybersecurity landscape.
During the fiscal fourth quarter that ended December 31, 2024, CHKP’s total revenues increased 6% year-over-year to $703.70 million. Its operating income grew marginally from the year-ago value to $254.30 million, while its non-GAAP net income came in at $303.20 million, up 1.6% year-over-year. Also, the company’s non-GAAP EPS increased 5.1% from the prior year quarter to $2.70.
For the third quarter ending March 31, 2025, CHKP’s revenue is expected to increase 6.1% year-over-year to $635.49 million. Its EPS estimate of $2.18 for the current quarter indicates a 7.1% improvement year-over-year. Additionally, it topped the revenue and EPS estimates in three of the trailing four quarters.
Over the past nine months, the stock has gained 37.2%, closing the last trading session at $212.24.
CHKP’s strong fundamentals are reflected in its POWR Ratings. It has an overall rating of B, which translates to a Buy in our proprietary rating system. It has an A grade for Quality.
It is ranked #6 out of 20 stocks in the same industry. Click here to view CHKP’s ratings for Growth, Value, Momentum, Stability, and Sentiment.
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FTNT shares were trading at $110.48 per share on Monday afternoon, up $2.82 (+2.62%). Year-to-date, FTNT has gained 16.93%, versus a 3.08% rise in the benchmark S&P 500 index during the same period.
About the Author: Shweta Kumari
Shweta's profound interest in financial research and quantitative analysis led her to pursue a career as an investment analyst. She uses her knowledge to help retail investors make educated investment decisions.
3 Cloud Security Stocks Benefiting from the Remote Work Boom StockNews.com
