Many investment trends are prevalent in the market, such as artificial intelligence (AI). One that I'm particularly excited about is cybersecurity. Many management teams are aware of the vulnerabilities in their systems and are taking action by deploying cybersecurity software to prevent costly ransomware and other attacks.

Of all the cybersecurity companies, one stands out as the best investment in 2024: CrowdStrike (NASDAQ: CRWD). CrowdStrike is a leader in the endpoint security space, which is useful for all potential clients. It also has other offerings, but a few other factors make it the best cybersecurity stock to own in 2024.

CrowdStrike's products use AI to make it one of the best in the business

CrowdStrike has garnered multiple accolades for its cybersecurity suite, such as being named a leader in endpoint protection by Forrester Research. While this is its flagship product, CrowdStrike has products in many other areas, like cloud security, identity protection, and threat intelligence. Management believes that when all of its product lines are added together, it's about a $100 billion market opportunity. However, it expects this market to expand to $225 billion by 2028.

This dramatic expansion shows how big a trend cybersecurity investing will be over the next five years, and purchasing CrowdStrike shares is a surefire way to get in on this trend.

CrowdStrike is also heavily invested in artificial intelligence, as it uses a branch of AI known as machine learning (ML) to to determine what is and what isn't a threat. This gives it an edge over some competitors in the space and is one of the reasons it's a top cybersecurity company.

CrowdStrike has also been growing rapidly. In Q3 of FY 2024 (ended Oct. 31), its annual recurring revenue rose 35% year over year to $3.15 billion. Its customers also use multiple products, with 63% deploying at least five products and 26% using seven or more.

While it's still growing at an impressive rate, CrowdStrike is also turning the profitability corner, as it posted its first operating profit in company history in Q3. While it was only a $3 million profit on revenue of $786 million (a 0.4% margin), it's the start of something much bigger. CrowdStrike's long-term goal is to post an operating margin of around 30%, although that figure doesn't include stock-based compensation.

Accounting for stock-based compensation is a big deal for CrowdStrike, as it currently eats up about 20% of revenue as an expense. However, stock-based compensation grew only 14% in the quarter compared to revenue growth of 35%, so management is being responsible with its expense growth.

This all adds up to a company that looks like a great investment but must be purchased at the right price for the investment to make sense.

CrowdStrike's stock is far from cheap

Because CrowdStrike isn't fully profitable, we must use alternative measures to value the stock. One is the price-to-sales ratio, which divides a company's market cap by its total sales. At 20 times sales, CrowdStrike is an incredibly pricey stock.

CRWD PS Ratio data by YCharts

However, much of the hype built into the stock is due to strong expectations and fantastic execution on CrowdStrike's part. In the stock market, you often have to pay up to own best-in-class companies, and CrowdStrike falls into this category.

While many investors wish they could return to the beginning of 2023 and buy CrowdStrike stock at a lower price, that ship has sailed. Instead, the next best thing to do is to buy CrowdStrike stock now. While the stock is undoubtedly expensive, it's a top player in a massive industry. If you commit to holding CrowdStrike stock for at least five years, I think it will be a market-crushing investment.

Find out why CrowdStrike is one of the 10 best stocks to buy now

Our analyst team has spent more than a decade beating the market. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*

They just revealed their ten top stock picks for investors to buy right now. CrowdStrike is on the list -- but there are nine others you may be overlooking.

Click here to get access to the full list!

*Stock Advisor returns as of November 29, 2023

Keithen Drury has positions in CrowdStrike. The Motley Fool has positions in and recommends CrowdStrike. The Motley Fool has a disclosure policy.