Wedbush: Network Security Stocks Most Worth Watching Before RSA Conference

Investing.com – Wedbush analysts released their top cybersecurity stock picks before the San Francisco RSA Conference, believing that recent sell-offs in the sector are a severe overreaction, as artificial intelligence is reshaping threat vectors and demand catalysts in enterprise software.

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The firm highlighted four cybersecurity stocks they believe are best positioned to benefit from what they call the sector’s “proof of moment.” As the conference approaches, AI-native security tools launched by Anthropic and OpenAI have sparked significant investor concern, with markets worried that existing cybersecurity platforms may face structural disruption.

However, after discussions with dozens of chief information security officers and CIOs, Wedbush believes these new tools are defensive supplements designed to accelerate vulnerability detection and remediation, not platforms intended to replace existing endpoint, identity, cloud, and security operations infrastructure that enterprises rely on.

According to Wedbush, AI is multiplying the demand for comprehensive cybersecurity solutions rather than reducing it. The increased use of AI significantly lowers the costs, skills, and time required to execute complex attacks, while expanding the scale and precision of assaults.

AI agents and autonomous workflows are expanding the attack surface, with more application programming interfaces, machine identities, and cloud-native workloads creating new vectors for attack—something traditional point solutions were never designed to handle.

The company’s preferred cybersecurity stocks include:

1. CrowdStrike — Wedbush’s top pick in cybersecurity, expected to benefit as attack frequency, success rate, and impact continue to rise in the AI revolution.

Recently, CrowdStrike announced several new products, including Agentic MDR, an AI-driven managed detection and response service, and Falcon Data Security, aimed at preventing data theft.

2. Palo Alto Networks — The second choice, expected to demonstrate broad platform coverage and deep AI integration as enterprises reduce vendor numbers and consolidate spending.

Palo Alto Networks released an updated version of its Prisma browser to address security challenges related to autonomous AI agents. The company also received its first coverage from Wells Fargo, which rated it as overweight.

3. Check Point Software — Ranked third among Wedbush’s preferred cybersecurity stocks, as the complexity and speed of modern attacks make fragmented point solutions increasingly difficult to sustain.

Check Point Software Technologies announced the formation of an executive advisory board to guide its strategy and launched security AI consulting services for enterprises. After reporting its latest earnings, Stephens lowered its target price, while TD Cowen reiterated a buy rating.

4. Zscaler — The fourth choice, expected to benefit from the sustainability of budget resilience in key segments and the trend toward wallet share consolidation.

Zscaler reported a 26% year-over-year increase in revenue for Q2 FY2026. Wells Fargo initiated coverage with an overweight rating, while firms like TD Cowen and BMO Capital lowered their target prices.

Wedbush emphasizes that cybersecurity remains a defensive sector within the software industry, and Wall Street has underestimated the sector’s prospects over the next 12 to 18 months.

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