3 Top Cybersecurity Stocks to Buy in July
Cybersecurity spending is expected to increase 15% this year.
Check Point is a pure-play cybersecurity company that works with more than 100,000 businesses.
IBM and Broadcom are massive companies that developed cybersecurity products.
Cyberattacks are a global problem that is just going to get worse as the world becomes more interconnected. Through malware, ransomware, phishing attacks, denial-of-service attacks, and identify theft, threats from cyberattacks are a daily fact of life.
The risks aren't limited to businesses or governments. Cyberattacks can take down a business, disrupt supply chains, shut down hospitals, or lock individuals out of their accounts. Cloud networks bring additional challenges, as many companies are using cloud-based services and are operating in multi-cloud environments. That's why global spending on cybersecurity, which was at $183.8 billion in 2024, is expected to jump 15% this year, according to Gartner.
That makes cybersecurity stocks an interesting long-term play for investors. There are many companies investing heavily in the cybersecurity space, and providing market-beating returns at the same time.
Three of the best cybersecurity stocks you can buy in July are Check Point Software Technologies (NASDAQ: CHKP), International Business Machines (NYSE: IBM), and Broadcom (NASDAQ: AVGO). Here's why I like these companies right now.
1. Check Point
Check Point is a pure-play cybersecurity stock, working with more than 100,000 businesses around the world. The company's Infinity platform includes artificial intelligence (AI)-powered tools to help customers protect network and cloud assets, as well as making remote work more secure.
The stock is up 18% so far this year and has a reasonable price-to-earnings (P/E) ratio of 22.3 times. Earnings for the first quarter included $638 million in revenue, which was up 7% from a year ago. And the company has a long runway ahead of it, as its remaining performance obligation (RPO) now sits at $2.4 billion, an increase of 11% from a year ago.
Check Point has excellent operating margins, with its non-GAAP (generally accepted accounting principles) margins at 41% in the most recent quarter. It is a stable, affordable play for investors looking for cybersecurity stocks.
2. IBM
Otherwise known as Big Blue, IBM is probably better known as a computer company, popularizing the personal computer back in the 1980s. And while it sold off its computer and server businesses, it's now focused on cloud computing, cybersecurity, and consulting.
IBM's offerings include enterprise security solutions to help businesses prepare for cyber threats, AI-powered cybersecurity solutions, and security consulting and management.
IBM is also known for large mainframe computers, which are used often by financial institutions because they can process large numbers of transactions at a time. Mainframe computers are also known for their protection against cyberattacks because they can switch to other components even if part of the computer goes down. According to International Data Corp., IBM has 96% of the mainframe market.
Earnings in the first quarter posted $14.5 billion in revenue, which included $5 billion in consulting services. Software sales were up 7% from a year ago, and the company saw its profit margins increase to 55.2%. IBM also has an exceptional cash position, with free cash flow of $2 billion for the quarter.
It also paid out $1.5 billion in dividends, as IBM offers a dividend yield of 2.3%. That's an outstanding payout on top of the stock's 31% gain so far in 2025.
IBM isn't a pure-play cybersecurity stock like Check Point. But it's an important player and plays a critical role in keeping the financial system up and running.
3. Broadcom
Broadcom is known more for its semiconductors, but it also became a cybersecurity stock after the company acquired VMware in 2023 for $61 billion. VMware had products that helped businesses manage and secure their cloud infrastructure, as well as endpoint security, network security, and secure cloud infrastructure tools.
So when you're buying Broadcom stock, you're getting a major computing company that has a hand in cybersecurity. That gives it multiple revenue streams that are attractive to investors.
Those revenue streams brought in $14.9 billion in the first quarter, up 25% from a year ago. Broadcom also produced net income of $5.5 billion in the quarter and earnings of $1.14 per share.
It also expects the dollars to continue to roll in during Q2, issuing guidance of $14.9 billion in revenue, which would be 19% better than a year ago.
Broadcom stock is up 17% so far this year, and is an excellent alternative in the cybersecurity space.
Should you invest $1,000 in Check Point Software Technologies right now?
Before you buy stock in Check Point Software Technologies, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Check Point Software Technologies wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $699,558!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $976,677!*
Now, it's worth noting Stock Advisor 's total average return is1,060% — a market-crushing outperformance compared to180%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor.
See the 10 stocks »
*Stock Advisor returns as of June 30, 2025
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
National Post
34 minutes ago
- National Post
'America Party': Musk forms new political party after split with Trump
Elon Musk said he's carrying out his threat to form a new political party after his fissure with President Donald Trump, announcing the America Party in response to the president's sweeping tax cuts law. Article content Musk, once an ever-present ally to Trump as he headed up the slashing agency known as the Department of Government Efficiency, broke with the Republican president over his signature legislation, which was signed into law Friday. Article content Article content As the bill made its way through Congress, Musk threatened to form the 'America Party' if 'this insane spending bill passes.' Article content 'When it comes to bankrupting our country with waste & graft, we live in a one-party system, not a democracy,' Musk said Saturday on X, the social media company he owns. 'Today, the America Party is formed to give you back your freedom.' Article content Article content The formation of new political parties is not uncommon, but they typically struggle to pull any significant support away from the Republican and Democratic parties. But Musk, the world's richest man who spent at least $250 million supporting Trump in the 2024 election, could impact the 2026 elections determining control of Congress if he is willing to spend significant amounts of money. Article content His reignited feud with the president could also be costly for Musk, whose businesses rely on billions of dollars in government contracts and publicly traded company Tesla has taken a hit in the market. Article content Article content As of Sunday morning, there were multiple political parties listed in the Federal Election Commission database that had been formed in the the hours since Musk's Saturday X post with versions of 'America Party' of 'DOGE' or 'X' in the name, or Musk listed among people affiliated with the entity. Article content Article content But none appeared to be authentic, listing contacts for the organization as email addresses such as ' wentsnowboarding↕ ″ or untraceable Protonmail addresses. Article content Last month, he threatened to try to oust every member of Congress that voted for Trump's bill. Musk had called the tax breaks and spending cuts package a 'disgusting abomination,' warning it would increase the federal deficit, among other critiques.
Globe and Mail
2 hours ago
- Globe and Mail
If I Could Load Up on Any Artificial Intelligence (AI) Stock, It Would Be This One (Hint: It's Not Nvidia)
Key Points Taiwan Semiconductor Manufacturing Company (TSMC) produces the vast majority of all high-performance AI chips. High-performance chips (which include AI chips) accounted for 59% of TSMC's total revenue in the first quarter of 2025. TSMC has been expanding its manufacturing operations to different countries outside of Taiwan. Artificial intelligence (AI) has been around for a while, but it gained mainstream popularity in early 2023 due to the rise of generative AI tools like OpenAI's ChatGPT and Alphabet' s Google Gemini. Plenty of tech stocks have seen their valuations skyrocket because of the AI boom, but the biggest beneficiary has undoubtedly been Nvidia (NASDAQ: NVDA). Over the past three years, its stock has increased by nearly 920%, while the S&P 500 has risen around 64% over the same period. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » Nvidia has gotten a lot of attention, and rightfully so. Its graphics processing units (GPUs) and AI software are very important to the AI ecosystem. However, there's another company that Nvidia relies on heavily that's just as important, and it's a stock I'm loading up on: Taiwan Semiconductor Manufacturing Company (NYSE: TSM) (TSMC). TSMC's role in the AI pipeline At first glance, calling a manufacturing company like TSMC an AI stock might seem unusual, but it's a pivotal player in how the technology all comes together. Let's take a look at how its business works. TSMC is the world's largest semiconductor (chip) manufacturer and the pioneer of the foundry business model. You can't buy TSMC chips in a store or online like a smartphone or laptop. Instead, companies go to TSMC with their chip designs, and it manufactures them, bringing those designs to life. For example, it makes chips for Apple 's iPhones, Tesla 's self-driving technology, AMD 's processors, Nvidia's GPUs, and plenty of other applications. TSMC's relationship with Nvidia and other AI-chip designers is why I'm willing to consider it an "AI stock," even as a chip manufacturing company. In fact, TSMC manufactures the vast majority of all high-performance AI chips, so there's a strong case to be made that without the company and its capabilities, the AI landscape would look significantly different -- for the worse. Money coming in to back up the hype The increased demand for AI chips is showing up in TSMC's financials. In the first quarter, its revenue increased 35% year over year to $25.5 billion. It expects its Q2 revenue to come in between $28.4 billion and $29.2 billion, representing year-over-year growth of 36% to 40%. That's impressive for a company of TSMC's size. Data by YCharts. Just three years ago, in Q1 2022, smartphone chips accounted for 40% of TSMC's revenue, while high-performance chips (HPCs), which include AI chips, accounted for 41%. Fast-forward to Q1 this year, and HPCs accounted for 59% of revenue, while smartphones accounted for only 28%. This shift in the composition of the company's top line isn't showing any signs of slowing down. Play the long game One of the risks facing TSMC's business is the geopolitical tension between Taiwan and China. However, management is working to address this concern by expanding its operations globally. TSMC currently has (or will have soon) manufacturing plants in the U.S., Germany, and Japan. This can help reduce some of its geographical risk. There's a reason so many of the world's top companies rely heavily on TSMC -- it's the best at what it does. Having the most technologically advanced foundries and a large customer base that often signs long-term contracts puts TSMC in a position to have consistent and reliable growth for quite some time. Trading at 28.9 times trailing earnings as of this writing, TSMC stock isn't "cheap" by most standards, but it's less expensive than other well-known AI stocks like Nvidia and Broadcom. And in this case, it's worth paying the slight premium for this undisputed industry leader, especially if you're looking for a long-term buy-and-hold position. Should you invest $1,000 in Taiwan Semiconductor Manufacturing right now? Before you buy stock in Taiwan Semiconductor Manufacturing, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Taiwan Semiconductor Manufacturing wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $699,558!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $976,677!* Now, it's worth noting Stock Advisor 's total average return is1,060% — a market-crushing outperformance compared to180%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. *Stock Advisor returns as of June 30, 2025 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Stefon Walters has positions in Apple and Taiwan Semiconductor Manufacturing. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Apple, Nvidia, Taiwan Semiconductor Manufacturing, and Tesla. The Motley Fool recommends Broadcom. The Motley Fool has a disclosure policy.
Globe and Mail
4 hours ago
- Globe and Mail
2 Dividend Stocks to Buy for Decades of Passive Income
Key Points Healthcare giants AbbVie and Abbott Laboratories are both Dividend Kings. They should maintain their dividend growth habits for a long time to come. That's thanks to their solid businesses and promising product pipelines. In 2013, AbbVie (NYSE: ABBV) became a publicly traded corporation after splitting from its former parent company, Abbott Laboratories (NYSE: ABT). Since then, both have produced strong returns and have been great picks for income-seeking investors, thanks to consistent payout hikes. That likely won't change soon. These healthcare leaders should continue to perform well and reward shareholders with dividend increases for a long time. Read on to find out more. 1. AbbVie AbbVie is a pharmaceutical leader with a large portfolio of approved products, none more important than a duo of immunology medicines: Skyrizi and Rinvoq. In the first quarter, the company's revenue increased by 8.4% year over year to $13.3 billion, while its adjusted earnings per share came in at $2.46, 6.5% higher than the year-ago period. These results are all the more impressive considering AbbVie faced a major patent cliff just two years ago; however, it has since recovered, largely thanks to Skyrizi and Rinvoq. The former generated $3.4 billion in sales during the period, representing a 70.5% year-over-year increase. Rinvoq's revenue came in at $1.7 billion, 57.2% higher than the year-ago period. Management predicts their combined annual sales will exceed $31 billion by 2027. Not only is that significantly higher than the $17.7 billion they racked up last year, it's also $4 billion higher than their previous guidance. Skyrizi and Rinvoq are expected to drive top-line growth well into the 2030s. Although they will eventually lose patent protection, they demonstrate AbbVie's ability to navigate even the biggest patent cliffs, a quality that is essential for any pharmaceutical company to thrive over the long term. AbbVie has other products that help drive revenue growth, and, equally important, it has a deep pipeline that it routinely strengthens through acquisitions. In March, the company announced a licensing deal with Denmark-based Gubra A/S for GUB014295, an investigational weight management therapy. AbbVie paid $350 million up front for this candidate, with potential milestones of $1.9 billion, not including royalties. AbbVie entered the fast-growing weight loss market with this move; GUB014295 might not pan out, but AbbVie's large pipeline, with approximately 90 products in development, should allow it to launch brand-new products frequently, navigate patent cliffs, and remain successful over the long run. Now turning to the company's dividend, AbbVie has increased its payouts by 310% since 2013. And counting the time it spent under Abbott Laboratories' name, AbbVie is a Dividend King with 53 consecutive years of payout increases. These facts, from AbbVie's underlying business to the company's dividend track record, point to a company capable of sustaining a passive income program for a long time. 2. Abbott Laboratories Abbott Laboratories is best known for its leadership in the medical device space, where it markets dozens of products across multiple therapeutic areas. The company also operates a diagnostic business and has a presence in the pharmaceutical and nutrition industries. Abbott Laboratories' operations are diversified, which can help it overcome challenges in specific segments. That's one of the company's strengths. Here's another: Abbott Laboratories has been a leader in the highly regulated healthcare sector for decades. The company has built a solid reputation with physicians and consumers, all of whom are more likely to gravitate toward the brands they know and trust. In the medical device field, Abbott is a trusted brand. And thanks to its vast portfolio, it generates consistent revenue and earnings. Abbott's biggest growth driver in recent years has been its diabetes care segment, led by its continuous glucose monitoring (CGM) franchise, the FreeStyle Libre. As the company noted, the FreeStyle Libre has become the most successful medical device in history in terms of dollar sales. That's no small feat. Yet there is still massive whitespace ahead, since only a small portion of the world's diabetics use CGM technology despite its advantages. Abbott's work in this niche should provide a powerful long-term tailwind, but there will be many others. The company boasts other growth drivers, including its structural heart segment, where it markets a range of successful devices, such as its MitraClip device, a leader in its mitral valve repair niche. Beyond any single product, Abbott Laboratories has a proven track record as an innovator and should continue launching newer and better ones. Lastly, Abbott is also a Dividend King, and over the past decade, it has increased its payouts by almost 146%. Abbott Laboratories' business is built to last. Investors who purchase the company's shares today can expect consistent dividend growth over the long term. Should you invest $1,000 in AbbVie right now? Before you buy stock in AbbVie, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and AbbVie wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $699,558!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $976,677!* Now, it's worth noting Stock Advisor 's total average return is1,060% — a market-crushing outperformance compared to180%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of June 30, 2025
