In this article, we take a look at the 10 Best Cybersecurity Stocks to Buy Under $50.
The risk of data breaches, hacks, and other crimes is constantly rising in a digital world powered by the artificial intelligence revolution. Data breaches continue to carry a heavy price for organizations. IBM’s 2025 report puts the global average cost at $4.44 million, with U.S. incidents far higher at $10.22 million. Healthcare remains the most expensive sector, averaging $7.42 million for the twelfth year in a row.
Breaches that take more than 200 days to uncover and contain cost about $5.01 million, and phishing incidents come in close at $4.8 million. Verizon’s findings show that most breaches involve outside actors, are largely driven by financial motives, and now include ransomware in 44% of cases. Even the early stages of responding to an incident: detection and escalation, average $1.47 million, highlighting how both immediate and long-term fallout make data breaches a major financial threat.
The cybersecurity sector has emerged as a primary defense against cybercrimes in the race to protect businesses, government agencies, and individual customers against malware, ransomware, and phishing attacks.
It’s already turning out to be a defining year for cybersecurity firms amid the rise of AI that can attack and defend computer networks. A surge in ransomware attacks and data breaches that’s disrupting businesses has got investors turning their attention to cybersecurity stocks.
As individuals and firms move to enhance their cyber defense, tremendous opportunities are emerging that cybersecurity companies are capitalizing on. Morgan Stanley expects the $270 billion cybersecurity market to grow by 12% over the next few years as firms increase spending on cybersecurity products by 50%.
Additionally, Morgan Stanley expects heightened spending on security software, which will capture a greater share of IT budgets in the years to come. The increase will be driven by a surge in the volume of cyberattacks due to AI.
“We expect platformization to continue as security needs grow against tight budgets, environments get more complex, a problem that only gets worse with AI,” analyst Meta A. Marshall, the lead author of the note, wrote.
Focus is increasingly turning to cybersecurity companies that can turn their cybersecurity solutions into consistent revenue growth and profitability. With that in mind, let’s take a look at some of the best cybersecurity stocks to buy under $50.
Our Methodology
To compile our list of the Best Cybersecurity Stocks to Buy Under $50, we analyzed holdings across several cybersecurity ETFs to identify key companies in the sector. We focused on stocks trading for less than $50 and that were the most popular among elite hedge funds in Q3 2025. We sourced the hedge fund sentiment data from Insider Monkey’s database. Additionally, we have mentioned the upside potential along with each stock. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them, as of Q3 2025.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research shows we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
Best Cybersecurity Stocks to Buy Under $50
10. Allot Ltd. (NASDAQ:ALLT)
Stock Price as of December 3: $9.25
Stock Upside Potential: 42.71%
Number of Hedge Fund Holders: 15
Allot Ltd (NASDAQ: ALLT) is one of the best cybersecurity stocks to buy under $50. Allot Ltd (NASDAQ:ALLT) commands a strong Buy consensus rating based on 4 Wall Street analyst ratings, all Buy. The analysts maintain an average price target of $13.50, implying 42.71% upside potential from current levels.
On November 25, Needham analyst Mathew Calibri reiterated a Buy rating and a $12.50 price target. The positive stance comes on the company’s chief executive officer, Eyal Harari, reiterating they are making significant progress in advancing a cybersecurity-first strategy. That was evident in the company’s 14% year-over-year revenue growth. It also generated the highest profitability in over a decade.
Consequently, the company posted a 14% year-over-year increase in revenue in the third quarter, totaling $26.4 million. GAAP operating income came in at $2.2 million compared to $0.2 million in the third quarter of 2024. Likewise, net income more than tripled to $4.6 million or $0.1 a share compared to $1.3 million or $0.03 a share delivered the same quarter last year.
“Given the continued accelerated SECaaS growth, our solid visibility, and high level of backlog, we expect that our SECaaS ARR year-over-year growth will surpass 60%. We are raising our full-year 2025 revenue guidance to between $100-103 million,” Eyal Harari, CEO of Allot, commented.
Allot Ltd. (NASDAQ:ALLT) provides network intelligence and security solutions for service providers and enterprises, using network data to make networks smarter and users more secure. Its products and services focus on network and application analytics, traffic control, and network-based security, including DDoS protection and IoT security.
9. Radware Ltd. (NASDAQ:RDWR)
Stock Price as of December 3: $23.60
Stock Upside Potential: 54.39%
Number of Hedge Fund Holders: 18
Radware Ltd (NASDAQ:RDWR) is one of the best cybersecurity stocks to buy under $50. Radware Ltd. (NASDAQ:RDWR) commands a consensus Moderate Buy rating on Wall Street from two analysts. The analysts maintain an average price target of $35, implying 54.39% upside potential from current share price.
On November 18, the company introduced LLM Firewall, a new security offering tailored to help organizations accelerate their use of generative artificial intelligence technologies. The firewall is designed to address sophisticated AI-targeted attacks, including Prompt injection, jailbreaks, data exfiltration, and misuse of model resources.
“Businesses want to use AI, but they’re being held back by uncertainty around regulation, data protection, and system security,” said Constance Stack, Chief Growth Officer at Radware. “The LLM Firewall addresses these concerns head-on by stopping malicious prompts and model manipulation before they can take hold.”
Additionally, the new security protocol will block malicious behavior, therefore help organizations prevent unintended leakage of personal or sensitive data during LLM interactions.
The unveiling of the new security firewall follows the company’s signing of a strategic partnership with Hitachi Solutions to offer its Cloud Application Protection Service in Japan. The service leverages artificial intelligence algorithms to detect zero-day web DDoS attacks that target APIs.
Radware Ltd. (NASDAQ:RDWR) provides cybersecurity and application delivery solutions for physical, cloud, and software-defined data centers. The company’s products and services are designed to protect and ensure the availability of applications and infrastructure for businesses worldwide. Key offerings include protection against DDoS attacks, web application firewalls.
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