April 22 - Oppenheimer has identified CrowdStrike (CRWD, Financial), CyberArk (CYBR, Financial) and Zscaler (ZS, Financial) as its leading cybersecurity picks ahead of first-quarter earnings, citing strong positioning amid growing economic and geopolitical pressures, according to a Tuesday investor note.
The brokerage trimmed earnings estimates and price targets across its software coverage for 2025, flagging a weaker IT spending outlook tied to the tariff war and macro uncertainty. Analysts expect cautious guidance from management teams as companies grapple with unpredictable impacts from evolving trade policies.
While Oppenheimer anticipates most software firms will match or slightly beat first-quarter expectations, it warned that visibility beyond Q1 is clouded by slowing inflation, softening employment trends and deteriorating sentiment toward U.S. businesses overseas.
Among security software providers, CrowdStrike stands out for its integrated platform and market reach in endpoint, cloud and identity security, according to the note. CyberArk's expansive suite, covering everything from privileged access to cloud identity, also supports its selection.
Zscaler is highlighted for its Zero Trust offerings and growth in secure edge architecture, which the firm believes could help it displace legacy SD-WAN solutions.
Oppenheimer said the trio is best equipped to weather macro headwinds and sustain growth in a challenging environment.
