In this article, we will look at some of the best names in the cybersecurity space that currently offer attractive upside for investors. On April 16, KPMG published its Cybersecurity Considerations 2026 report, which touched upon several factors relevant to the cybersecurity industry. According to the findings in the report, the threat scenario is quickly expanding and maturing. This can involve factors such as AI, geopolitics, regulation, supply chain disruptions, identity without humanity, hyper-connectivity, and the impending possibility of quantum decryption. For the CISOs, the challenge is not only protection from threats but also developing resilience and innovating.
Eight critical cyber challenges were highlighted in the report. These challenges include self-governance for security, geopolitics, ensuring cybersecurity for AI technologies, addressing non-human identities, converging information technology and operational technology, readiness for post-quantum cryptography, supply chain resilience, and the growing scope of the CISO role.
The report features input from more than 20 cyber leaders across KPMG’s global offices. Input is also provided by senior management at Google, Microsoft, Palo Alto Networks, and ServiceNow. Findings are further enhanced by KPMG’s global and regional surveys.
The key takeaway is that in addition to defense, cybersecurity has evolved into a means of enabling trust, resilience, and improved organizational effectiveness. It is now very important for companies to strengthen their frameworks and infrastructure to accommodate the ever-evolving landscape of cybersecurity. With that background, let’s explore our 10 Best Cybersecurity Stocks to Invest in According to Analysts.
Den Rise/Shutterstock.com
Our Methodology
To identify relevant stocks for this article, we screened U.S.-listed cybersecurity companies with market capitalizations above $2 billion. Also, we only shortlisted stocks with at least 35% upside potential, according to consensus, as of the April 22 close. Finally, we selected 10 stocks with the highest upside and ranked them in ascending order.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that 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 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
10. Commvault Systems Inc. (NASDAQ:CVLT)
Commvault Systems Inc. (NASDAQ:CVLT) is one of the 10 best cybersecurity stocks to invest in according to analysts.
On April 21, Scotiabank initiated coverage of Commvault Systems Inc. (NASDAQ:CVLT), assigning the stock a Sector Perform rating and a price target of $105. In the firm’s view, the competitive landscape in the data protection, backup, and cyber recovery market is quite aggressive.
The firm noted that the company faces the risk of witnessing its topline growth being derived mainly from leveraging its huge installed base, instead of a more sustainable new logo traction. The firm also believes that the consensus 2027 targets for Commvault do not inspire too much confidence.
The company’s valuation metrics in case of a potential acquisition are also what is driving this investment story. Back on April 13, Oppenheimer observed that an opportunity to acquire Commvault Systems Inc. (NASDAQ:CVLT) exists because of the attention given by Thoma Bravo. In terms of current market makeup, a financial buyer is more likely to acquire the company, considering that the top six players within the segment control nearly 70% of the market share.
According to the firm, acquisition by Rubrik is unlikely to be a good fit from a strategic point of view. The firm also highlighted Cohesity, which bought Veritas recently and has already started the post-deal technological integration. It is very likely that Veeam will make a bid as they aim to enter large enterprise markets. From the valuation point of view, Oppenheimer believes that acquiring Commvault at a 15 times EV/FCF multiple will be a wise investment. This would imply a stock price of $125-$130, offering roughly 40% premium to the prevailing market price. Currently, the firm rates Commvault stock as Outperform with a target price of $150, leading to an upside of almost 65%.
Commvault Systems Inc. (NASDAQ:CVLT) is a cybersecurity and data protection company that delivers data recovery and protection services. Through its Operational Recovery function, it offers data backup, recovery, and workload mobility solutions covering on-premises, hybrid, and multiple cloud environments.
