The Best Cybersecurity Stock to Buy Right Now in July? | PANW, FTNT, S, RBRK, CRWD?

Parkev Tatevosian, CFA•Jul 8, 2026

Summary

Parkev provides a strategic update on the cybersecurity sector for the remainder of 2026, evaluating five major players based on revenue growth, operating margins, and valuation. Parkev notes that the industry as a whole is performing exceptionally well, with stocks like Fortinet and Palo Alto Networks seeing massive year-to-date gains. However, Parkev believes that investors should look beyond past performance to identify which stocks offer the most upside from their current price levels.

Parkev focuses heavily on the relationship between revenue acceleration and profit margins. Parkev expresses a preference for companies showing organic growth where margins expand alongside revenue, rather than companies using heavy promotions to buy market share. By comparing forward price-to-earnings ratios across the sector, Parkev concludes that a valuation disparity that previously favored Fortinet has now closed, creating a more compelling entry point for SentinelOne.

SentinelOne: Parkev designates SentinelOne as the current top pick in the cybersecurity sector because of its aggressive revenue growth and rapidly improving operating margins. Parkev notes that while the company is not yet profitable, its -29% margin is trending upward as it gains scale from its $1.05 billion revenue base. Parkev emphasizes that at a forward P/E of 52, SentinelOne offers significantly better upside potential than its peers for the remainder of 2026.

Fortinet: Parkev reports that Fortinet has performed exceptionally well, rising 104% since Parkev's initial recommendation in early 2026. Parkev still appreciates the company's industry-leading 31% operating margins and solid $7.1 billion in revenue. However, Parkev argues that because its valuation has now caught up to SentinelOne's at a forward P/E of 51, it is no longer the absolute best value in the space.

Palo Alto Networks: Parkev observes that Palo Alto Networks has seen a surge in revenue to over $10.6 billion, making it the largest by sales in this group. Parkev is critical of the fact that this growth has come at the expense of operating margins, which Parkev attributes to aggressive free-trial incentives and a strategy shift toward "platformization." Parkev suggests that this makes the company less attractive at a forward P/E of 95 compared to companies with stronger organic growth.

CrowdStrike: Parkev mentions that CrowdStrike continues to grow with $5.1 billion in revenue and a 70% stock price increase in 2026. Parkev highlights that the company is quite expensive, trading at a forward P/E of 162. Parkev also notes that CrowdStrike has not shown significant progress in improving its operating profit margins since 2021, making it a less favorable pick for Parkev.

Rubrik: Parkev identifies Rubrik as the most expensive stock in the peer group with a forward P/E ratio of 278. Parkev acknowledges its fast revenue growth of $1.425 billion but points out that its operating margins remain volatile and negative at 21%. Parkev generally prefers other cybersecurity options that offer a better balance of growth and valuation.

Mentioned Stocks

RBRK

Sentiment: HOLD

Reasoning: Parkev identifies Rubrik as the most expensive stock among the compared group with a forward P/E of 278. Parkev notes that while revenue growth is strong, its operating margins remain volatile and negative at 21%.

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FTNT

Sentiment: HOLD

Reasoning: Parkev notes that Fortinet was a previous top pick and has risen over 100% in 2026. While Parkev still likes the company's 31% operating margins, Parkev believes the valuation is no longer as attractive at a forward P/E of 51 now that the discount relative to SentinelOne has disappeared. Parkev suggests SentinelOne is a better buy from this point forward.

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CRWD

Sentiment: HOLD

Reasoning: Parkev mentions that CrowdStrike has a high valuation with a forward P/E of 162. Parkev also notes that the company hasn't made much progress in improving its operating profit margins since 2021, leading Parkev to favor other options in the sector.

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PANW

Sentiment: SELL

Reasoning: Parkev is critical of Palo Alto Networks because its revenue acceleration has come at the expense of its operating profit margins. Parkev attributes this to aggressive promotions and free trials, characterizing the growth as less organic and less impressive than peers. Parkev notes the stock trades at a high forward P/E of 95.

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Sentiment: BUYAction: RECOMMENDED

Reasoning: Parkev recommends SentinelOne as the best cybersecurity stock to buy right now. Parkev highlights its strong revenue growth and consistent improvement in operating margins. Parkev notes that its forward P/E of 52 is nearly identical to Fortinet's, but SentinelOne offers much better upside potential due to its smaller scale and faster growth trajectory.

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