Even with rising macroeconomic pressures and ongoing tariff concerns, Oppenheimer is sticking with three cybersecurity names it says are built to weather the storm—CrowdStrike (CRWD, Financial), CyberArk (CYBR, Financial), and Zscaler (ZS, Financial).
In a new report, analyst Ittai Kidron says the firm is dialing back 2025 estimates across the board for software companies due to slowing IT budgets and increased caution from both businesses and consumers. While most companies are expected to post solid first-quarter results, the outlook for the rest of the year is less clear, and guidance could come in softer than usual.
Still, cybersecurity stands out. Kidron sees CrowdStrike's unified platform and strength across key areas like cloud and identity protection as a strong advantage. CyberArk's wide range of identity-focused tools gives customers a one-stop approach to security. And Zscaler continues to lead in Zero Trust architecture, offering cloud-native solutions that are increasingly replacing older, less flexible tools.
Oppenheimer sees CrowdStrike's single-agent platform and multi-product strength as key growth drivers. It views CyberArk's broad identity and access capabilities as a consolidator's play. Meanwhile, Zscaler's Zero Trust architecture and cloud security positioning remain standout advantages as firms shift from legacy network tools.In short, even with market nerves high, Oppenheimer sees opportunity in security.
