3 Top Cybersecurity Stocks to Buy in July

Key Points

• 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.

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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.

Image source: Getty Images.

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.

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Patrick Sanders has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Check Point Software Technologies and International Business Machines. The Motley Fool recommends Broadcom and Gartner. The Motley Fool has a disclosure policy.