5 stock picks from an analyst for a new era of cybersecurity threats

Business Insider

07-07-2025

Geopolitical tensions have soared in recent years, leading experts to worry about the rising threat of cyberattacks on governments and critical infrastructure.
Cybersecurity concerns have jumped this year. After the US government targeted Iran in a military attack on its nuclear facilities, Iran-linked hackers responded by targeting American banks and defense contractors, as well as oil producers.
Arnie Bellini, managing partner of cybersecurity investment firm Bellini Capital, believes that the US government will double down on cybersecurity — and he sees a key opportunity for investors in a handful of stocks that could benefit from the heightened spending.
"A lot of people can make lots of money in the cyber space right now," he said. "It's a really smart play."
Bellini told Business Insider that he's eyeing these stocks as top picks in the space.
Palo Alto Networks
From Bellini's perspective, cybersecurity firms that are strongly aligned with the federal government are in the best position to gain.
He sees Palo Alto Networks as the best cybersecurity play, due to the company's federal alignment, dynamic list of product and artificial intelligence (AI) integration.
"They've already worked with the government agencies, and they're rapidly expanding AI integrated threat detection and zero trust architecture to modern, very appropriate approaches to cybersecurity defense," he stated.
Bellini cited the example of Palo Alto Network's history of collaborating with the Cybersecurity and Infrastructure Security Agency (CISA), noting that he expects the contract between the two to be expanded.
Shares of Paolo Alto Networks are up 11% year-to-date.
CrowdStrike
Just behind Palo Alto Networks in Bellini's cyber stock rankings is Crowdstrike Holdings.
Bellini highlighted CrowdStrike's popularity with both defense contracts and incident response teams, describing the company as a "go-to product" for many in these areas.
"They also have a real-time threat intel and a security operations center automation that fit well with federal cyber rapid response mandates," he added, praising the company's ability to respond to attacks quickly, an essential component of cybersecurity success.
Crowdstrike stock is up 50% in 2025.
Fortinent and SentinelOne
Bellini's also sees growth potential in Fortinet and SentinelOne.
While Fortinet is up 12% this year, SentinelOne is down 17% in 2025. That said, Bellini touts them both as likely beneficiaries of a boost to government cyber defense spending.
He touts Fortinet's network security and secure access services as a vital component for federal agencies that manage a hybrid infrastructure. "They tick off all the boxes as a company that could be used and is already being used by the federal government," he stated.
Bellini acknowledges that SentinelOne is a comparatively new player in the industry but praises its use of AI as an effective cyber tool.
"Those who seek to do us harm, the hackers, they're all using AI," he noted. "What's great about Sentinel one is they have an AI driven, autonomous detection and response system." He sees this as highly important because it can help close the skills gap that the cybersecurity industry is facing.
A mixed take on Palantir
The final cybersecurity stock in Bellini's top five ranking is Palantir Technologies, a company that has emerged as one of the year's breakout stocks. The tech firm has surged more than 78% this year, an is a popular favorite among retail investors.
Palantir fits Bellini's criteria of being aligned with the government, as it's inked numerous contracts with agencies including the Department of Defense and Immigration and Customs Enforcement.
However, Bellini ranks it below the other top names on his list because, in his words, Palantir is not pursuing AI in its cybersecurity endeavors. However, he added that he does believe that Palantir will benefit from any cyber defense push due to its extensive data mining.