Trading cybersecurity: 5 plays on surging sector

Trading cybersecurity: 5 plays to make

As more high-profile hacking incidents put a premium on security software, FireEye in particular stands to benefit, CNBC "Fast Money" traders said Friday.

U.S. officials on Thursday reported a data breach that potentially compromised personal data of about 4 million federal employees. It follows notable breaches of Anthem, Sony Pictures and Home Depot, among others in the past year.

Read MoreUS officials report massive breach of federal personnel data

Shares of FireEye and other cybersecurity companies have surged amid growing concerns about data security. For trader Josh Brown, FireEye is the most likely to develop fundamentals that back up its price.

"To me, that's the one with the best chance of really growing into its valuation," he said.

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FireEye jumped 6 percent on Friday and has climbed more than 60 percent this year. The stock looks to be on a "breakout" and should continue higher, said trader Tim Seymour.

Trader Steve Grasso said that investors should stick with FireEye as more companies put an emphasis on cybersecurity. He noted that FireEye's recent deal with Visa to share threat information is promising for the company.

Read MoreHow much are your records worth on the black market?

Grasso added that he liked Palo Alto Networks stock. Shares closed nearly 3 percent higher Friday and have risen more than 40 percent this year.

Trader Dan Nathan added that investors should not overlook Cisco Systems, one of the more established names in the space. It has climbed nearly 3 percent this year, but falls well short of the huge rallies enjoyed by FireEye and Palo Alto.


Josh Brown


Tim Seymour

Tim Seymour is long AAPL, T, BAC, C, DIS, F, FEYE, GE, GM, GOOGL, INTC, KORS, SUNE and TLT. Tim's firm is long BABA, BIDU, MCD, NKE, NOK, SBUX, TSL and YHOO. Today, he bought TLT.

Steve Grasso

Steve Grasso is long AAPL, BAC, DD, DECK, EVGN, MJNA, PFE, T, TWTR and GDX. His firm is DVN, APA, KSU, NE, NEM, OXY, RIG, TSE and VALE. His kids own EFG, EFA, EWJ, IJR and SPY.

Dan Nathan

Dan is long LNKD July call fly, LVS July Aug put spread, GOOGL June/July call spread, TWTR, BBRY June calls, SO, DE June put fly, INTC July put and SPY June put fly. He is short SO Aug calls. Today he sold to close TLT June call butterfly and GOOGL June call fly.