Investors who are looking for bright spots amid market volatility may be turning to cybersecurity stocks. Although many technology stocks have sold off sharply as part of the general market malaise, there’s some evidence that buyers are returning to the cybersecurity sector.
[content-module:CompanyOverview|NASDAQ: CRWD]For investors seeking a standout pick, CrowdStrike Holdings Inc. (NASDAQ: CRWD) is worth considering. The stock made up all the losses from its security outing in July 2024 but has been under pressure along with the broader sector. Nearly two dozen analysts have weighed in since the earnings report, and the results have been mixed. However, the CrowdStrike analyst forecast on MarketBeat gives CRWD stock a consensus price target of $398.78, which provides a 9% upside from current levels.
That came after the company’s fourth-quarter and full-year fiscal year (FY) 2025 earnings report. The company beat on the top and bottom lines. For the full year, CrowdStrike recorded an impressive $1.07 billion in free cash flow and a 27% free cash flow margin. The company’s Rule of 40 score was an impressive 56. However, its forward guidance highlighted concerns over its anticipated need to increase spending, which it must do to advance the technology.
Cybersecurity Is One Area That Corporations Can’t Do Without
The cybersecurity industry is one of the big winners in the AI trade. The reasoning is simple. There are two sides to the AI coin. One side is occupied by bad actors who are using AI to increase the sophistication of the threats that organizations must respond to. That means cybersecurity companies, like CrowdStrike, are developing AI tools to fend off these attacks.
It’s an arms race that shows little sign of slowing down, and it's one area where corporations can’t afford to cut corners. In CrowdStrike’s fourth quarter 2025 earnings report in March, it estimated the total addressable market for its AI-native security platform at $116 billion. The company expects that to grow to $250 billion by 2030.
CrowdStrike addresses this need with its Falcon platform, a software-as-a-subscription (SaaS) model with 29 cloud modules. Customers can purchase one or more of these modules depending on their needs. As of the fourth quarter of 2025, 48% of its customers used 6 or more modules.
That’s significant because the more modules customers use, the stickier CrowdStrike becomes. It also makes them less likely to switch providers.
Congressional Insiders Are Buying
Like it or not, members of Congress can and do buy stocks—often in ways that resemble insider trading. Rather than just questioning the ethics, investors might benefit from analyzing their trades and acting accordingly.
In the case of CrowdStrike, at least three members of Congress have purchased shares of CRWD stock in the last 90 days.
- Robert Bresnahan Jr., a Republican from Pennsylvania, purchased between $1,001 and $15,000 of CRWD stock on January 28, 2025. The trade was filed on February 13, 2025.
- Greg Landsman, a Democrat from Ohio, purchased between $1,001 and $15,000 of CRWD stock on February 26, 2025. The trade was filed on March 5, 2025.
Both Bresnahan and Landsman may be playing the long game regarding CRWD stock. In both instances, the stock is down from their purchase dates. However, another Congressional insider seems to have had better timing.
That would be Marjorie Taylor Greene, a Republican from Georgia who purchased between $1,001 and $15,000 of CRWD stock on March 7, 2025. The trade was filed on March 9, 2025. Since her purchase, CrowdStrike stock is up over 8%.
Congressional trading, whether ethical or not, is backed by institutional buying, which totaled $4.84 billion in Q4. Buyers outpaced sellers by over $2 billion, reinforcing conviction in CRWD stock.
Where Should You Invest $1,000 Right Now?
Before you make your next trade, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis.
Our team has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and none of the big name stocks were on the list.
They believe these five stocks are the five best companies for investors to buy now...
