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.
8. Telos Corporation (NASDAQ:TLS)
Stock Price as of December 3: $5.58
Stock Upside Potential: 53.44%
Number of Hedge Fund Holders: 18
Telos Corporation (NASDAQ:TLS) is one of the best cybersecurity stocks to buy under $50. Telos Corporation (NASDAQ:TLS) holds a Moderate Buy consensus rating from 5 analysts, with 3 Buys and 2 Holds. It commands an average price target of $8.70, implying 53.44% upside potential from the current share price.
The stock continues to elicit positive ratings on Wall Street. On November 15, analysts at DA Davidson raised the stock’s price target to $7.50 from $4 while reiterating a Neutral rating. The price target hike is in response to the company’s solid third-quarter results, which exceeded expectations. It achieved the highest EBITDA level since 2018 at 19.6%.
Revenue came in above guidance at $51.4 million, driven by stronger-than-forecast second-half performance in Telos ID. It was also up 116% year over year amid the ongoing expansion of large Telos ID programs. Likewise, the company’s net loss narrowed to $0.03 a share in the quarter from $0.39 a share in the same quarter last year.
Meanwhile, on November 11, Northland raised its price target of Telos to $9 from $7 while reiterating an Outperform rating. The positive stance underscores the firm’s confidence in the company’s outlook, impressed by the full-year 2025 outlook that implies a 40% increase in EBITDA margins.
Telos Corporation (NASDAQ:TLS) is a cybersecurity and cloud solutions company that provides security services for government agencies and other security-conscious organizations. Their offerings include a platform for cyber risk management, Xacta, and secure communication systems such as the Automated Message Handling System (AMHS).
7. SailPoint, Inc. (NASDAQ:SAIL)
Stock Price as of December 3: $19.84
Stock Upside Potential: 44.40%
Number of Hedge Fund Holders: 25
SailPoint, Inc. (NASDAQ:SAIL) is one of the best cybersecurity stocks to buy under $50. SailPoint, Inc. (NASDAQ:SAIL) holds a strong Buy rating according to 19 Wall Street analysts. The stock commands 16 buy and three hold ratings, with an average price target of $26.57, implying 44.40% upside from current levels of $19.84 a share.
On November 18, analysts at TD Cowen reiterated a Buy rating on the stock and a $30 price target, as they remain optimistic that the company will deliver solid third-quarter results. The company is expected to provide net new annual recurring revenue of $49 million, representing 6% year-over-year growth. According to the research firm, the increase will be driven by healthy demand for vendors offering comprehensive identity governance solutions.
Likewise, TD Cowen is banking on the successful misuse of AI models to accelerate cyberattacks at scale, presenting opportunities for Sailpoint to capitalize on with its solutions.
Similarly, analysts at Berenberg have echoed these sentiments, reiterating that Sailpoint is a Buy with a $31.70 price target. According to the research firm, the company is at the intersection of security and identity. Likewise, it expects to benefit from rising identity theft incidents and the accelerating adoption of zero-trust security frameworks.
SailPoint, Inc. (NASDAQ:SAIL) provides identity security solutions that manage and secure access to corporate networks and data. It uses AI and machine learning to automate processes like granting appropriate access to the right users and machine identities at the right time.
6. Infosys Limited (NYSE:INFY)
Stock Price as of December 3: $17.99
Stock Upside Potential: 7.19%
Number of Hedge Fund Holders: 29
Infosys Limited (NYSE:INFY) is one of the best cybersecurity stocks to buy under $50. On November 25, analysts at JPMorgan reiterated an Overweight rating on the stock, impressed by the company’s stable demand and strong bookings for its solutions. According to the investment bank, the company has not experienced any deterioration in demand trends, as it continues to see strength in the financial services and mortgage sectors.
Consequently, it recorded strong bookings of $6.9 billion in the first half of its fiscal year, bolstered by an additional $1.6 billion in NHDS contracts in the third quarter. Consequently, JPMorgan has echoed Infosys as one of its top Overweight picks among IT scale vendors, owing to its strong artificial intelligence proposition.
The IT sector is still under strain. Revenue grew only about 1% year over year in September 2025, and the market’s 7% growth forecast for FY27 looks optimistic. Jefferies remains cautious, noting that Nifty IT is trading at a steep premium to Accenture even though it usually trades at a discount. Quarterly growth improved slightly to 1.5%, helped by Life Sciences and a few smaller segments, but Retail and CPG continued to drag results down. Mid-tier companies did a bit better than the larger players thanks to currency gains and delayed wage hikes, yet overall sentiment is still subdued. In a November 20 note, Jefferies named Infosys as its top large-cap choice, citing better-than-peer growth but softer margins and no clarity on wage increases, with guidance left unchanged in a slow-demand environment.
Infosys Limited (NYSE:INFY) provides end-to-end cybersecurity consulting, transformation, and managed services for global enterprises, leveraging a platform-centric, AI-powered approach to help businesses build a resilient and robust security posture. They help clients proactively detect threats, ensure compliance, and recover rapidly from incidents.
5. Tenable Holdings, Inc. (NASDAQ:TENB)
Stock Price as of December 3: $26.96
Stock Upside Potential: 44.65%
Number of Hedge Fund Holders: 32
Tenable Holdings Inc. (NASDAQ:TENB) is one of the best cybersecurity stocks to buy under $50. Tenable Holdings Inc. (NASDAQ:TENB). Tenable Holdings Inc. (NASDAQ:TENB) commands a Moderate Buy rating from 18 Wall Street analysts, with 11 Buy and 7 Hold ratings. The analysts have an average price target of $38, implying 44.65% upside potential from current levels of $26.96 a share.
On November 17, S&P Global Ratings upgraded Tenable Holdings, impressed by the company’s consistent revenue growth and platform momentum that have improved its financial performance. Over the past two years, the company has demonstrated year-to-date revenue growth of 11% and margin expansion.
S&P Global expects the company’s margins to expand to 23% by year’s end, from 11% in 2022 and 15% in 2023. According to the ratings firm, the company is well-positioned to benefit from the growing momentum in operational technology and AI security. It has already acquired Vulcan Cyber, which is expected to expand its capabilities by incorporating third-party customer data and leveraging existing products.
The robust growth is driven by strong adoption of the company’s exposure management platform, which accounts for 40% of all new businesses. Similarly, a transition to an integrated platform has enabled the company to secure larger and more strategic deals.
Tenable Holdings, Inc. (NASDAQ:TENB) is a cybersecurity company that provides exposure management solutions to help organizations identify and close security gaps. It offers a unified platform, Tenable One, that provides a single view of risk across IT assets, cloud resources, containers, web apps, and identity systems, ultimately helping businesses reduce cyber risk.
4. Rapid7, Inc. (NASDAQ:RPD)
Stock Price as of December 3: $15.94
Stock Upside Potential: 24.63%
Number of Hedge Fund Holders: 34
Rapid7 Inc. (NASDAQ:RPD) is one of the best cybersecurity stocks to buy under $50. Rapid7 Inc. (NASDAQ:RPD) commands a consensus hold rating from 19 Wall Street analysts, comprising 3 Buy, 15 Hold, and 1 Sell ratings. The average price target for the stock is $19.33, implying 24.63% upside potential from the current price of $15.94 a share.
On December 2, Rapid7, Inc. announced a new partnership with HITRUST aimed at helping organizations simplify compliance efforts and lower the cost of security assurance. The collaboration brings together Rapid7’s Surface Command, its platform for giving companies a comprehensive view of their attack surface, with the HITRUST assurance framework. By linking the two, customers can automatically gather evidence, map their controls, and validate them against HITRUST requirements. The result is a smaller audit footprint, fewer operational burdens, and stronger overall cyber resilience.
On November 20, the company introduced a new offering that delivers threat intelligence to customers in Amazon Web Services environments. Curated Intelligence Rules for AWS Network Firewall is the new offering that seeks to address operational challenges security teams face. The solution will allow organizations to scale cloud defenses and reduce operational overhead.
By Providing Curated Intelligence Rules directly into the AWS network firewall, Rapid7 is removing coverage gaps and enabling immediate, high-quality protection against threats.
“Integrating our Curated Intelligence Rules directly with AWS Network Firewall transforms world-class threat intelligence into instant, actionable protection. Customers can now deploy defense backed by Rapid7 Labs’ research with just a few clicks, ensuring their security scales as dynamically as their AWS environment,” said Craig Adams, chief product officer at Rapid7. “This is game changing for security teams dealing with the complexity associated with a proliferation of manual rule creation and maintenance.
Meanwhile, on November 18, Berenberg initiated coverage of the stock with a Hold rating and a $16 price target. The cautious outlook is in response to the company’s flat ARR growth for 2025 and revenue growth forecast of just 1% to 2%.
Rapid7, Inc. (NASDAQ:RPD) provides a range of cybersecurity tools and services under well-known names such as Rapid7, Nexpose, and Metasploit. The company’s product lineup includes the Insight Agent, which helps monitor assets across both cloud and on-premises environments, as well as the Insight Network Sensor for examining network activity. It also offers Cloud Event Data Harvesting to keep track of changes happening in cloud platforms, along with a variety of integrations and automation capabilities. Today, Rapid7 supports more than 11,000 organizations around the world. By combining its technology with deep security research and hands-on expertise, the company aims to make cybersecurity easier to manage while improving cloud risk oversight and speeding up the detection and response to threats.
3. Varonis Systems, Inc. (NASDAQ:VRNS)
Stock Price as of December 3: $31.22
Stock Upside Potential: 78.58%
Number of Hedge Fund Holders: 37
Varonis Systems Inc. (NASDAQ:VRNS) is one of the best cybersecurity stocks to buy under $50. Varonis Systems Inc. (NASDAQ:VRNS) commands a strong Buy consensus rating from 19 analysts, with 15 Buy and 4 Hold ratings. The average price target on the stock is $57.61, implying 78.58% upside potential from the current price of $31.22 a share.
On November 18, the company confirmed the integration of its data security posture management with Microsoft Purview. The integration will enable organizations to monitor sensitive data across multiple platforms in a unified interface. Additionally, the integration will allow security teams to extend visibility beyond Microsoft environments into third-party platforms such as Salesforce.
“This security integration between Varonis and Microsoft Purview comes at a critical moment for AI adoption,” said Yaki Faitelson, CEO and Co-Founder of Varonis. “This DSPM integration gives customers the confidence to safely adopt AI apps and agents by increasing visibility on sensitive data accessed by those tools.”
Varonis has partnered with Microsoft to eliminate blind spots and simplify operations through streamlined experiences amid heightened data management challenges and the adoption of AI applications.
Meanwhile, William Blair analyst Jason Ader maintains a Buy rating on the stock despite a significant pullback following third-quarter results. According to the analyst, the pullback is excessive given the company’s solid sales growth trajectory.
Varonis Systems, Inc. (NASDAQ:VRNS) provides a data security platform that protects an organization’s critical information, whether stored in the cloud or on-premises. Its cybersecurity focus is on protecting the data itself, rather than traditional perimeter or endpoint security, by monitoring access, detecting threats, and automating risk reduction.
2. SentinelOne, Inc. (NYSE:S)
Stock Price as of December 3: $17.12
Stock Upside Potential: 43.53%
Number of Hedge Fund Holders: 42
SentinelOne Inc. (NYSE:S) is one of the best cybersecurity stocks to buy under $50. On November 30, J.P. Morgan analyst Brian Essex reaffirmed a Hold rating on SentinelOne Inc. (NYSE:S), setting a price target of $19. Earlier, on November 20, analysts at Raymond James reiterated their view that SentinelOne Inc. is one of the top cybersecurity stocks whose value appears disconnected from market valuation. Consequently, the analysts maintain an average price target of $25, which is above the consensus average of $22.85.
The research firm remains optimistic about the company’s prospects following the $225 million acquisition of data streaming platform Observo AI. The company has also received a $2 million award from the Cybersecurity and Infrastructure Security Agency (CISA).
Likewise, an analyst at Cantor Fitzgerald has reiterated an Overweight rating on the cybersecurity stock, impressed by vigorous large-deal activity and the launch of the Flex offering. The research firm has also echoed the expansion of the CNAPP platform, supported by the Prompt acquisition and growing product momentum. Nevertheless, it lowered the price target to $22 from $24.
SentinelOne, Inc. (NYSE:S) is a cybersecurity company that provides an AI-powered platform, the Singularity Platform, to protect against cyber threats. The platform offers autonomous prevention, detection, and response for endpoints, cloud workloads, and identities, using AI and machine learning to operate at machine speed without human intervention.
1. Gen Digital Inc. (NASDAQ:GEN)
Stock Price as of December 3: $26.98
Stock Upside Potential: 31.01%
Number of Hedge Fund Holders: 46
Gen Digital Inc. (NASDAQ:GEN) is one of the best cybersecurity stocks to buy under $50. Gen Digital Inc. (NASDAQ:GEN) holds a Moderate Buy rating from seven analysts on Wall Street made up of 3 Buy and 4 Hold Ratings. The stock commands an average price target of $34.43, implying 31.01% upside from its current price of $26.98.
On November 7, analysts at Evercore ISI reiterated an Outperform rating on the stock and raised the price target to $37 from $35. The price target hike is in response to the company’s impressive second-quarter fiscal 2026 results, which beat estimates. Earnings per share came in at $0.62, beating the analyst estimate of $0.61. Revenue also came in at $1.22 billion, up 25% year over year versus $1.19 billion expected.
“Gen’s record Q2 performance demonstrates the strength of our playbook and scalability of our business,” said Natalie Derse, CFO of Gen. “Eight straight quarters of EPS growth at or above our 12 – 15% target underscores our consistent execution and financial discipline. As we accelerate innovation and deepen our leadership in secure financial wellness, we’re amplifying our growth potential and driving lasting shareholder value.”
Additionally, Gen Digital issued strong third-quarter guidance, expecting EPS to range between $0.62 and $0.64, against the $0.63 expected. Revenue is expected to be between $1.22 billion and $1.24 billion, versus the $1.19 billion analysts expect.
Gen Digital Inc. (NASDAQ:GEN) is a global leader in consumer cyber safety that provides cybersecurity, identity theft protection, and online privacy solutions through its family of brands. It offers a comprehensive platform of digital protection products, including antivirus software, VPNs, and identity monitoring services.
While we acknowledge the potential of GEN to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than GEN and that has 100x upside potential, check out our report about this cheapest AI stock.
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