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.
9. Microsoft Corp. (NASDAQ:MSFT)
Microsoft Corp. (NASDAQ:MSFT) is one of the 10 best cybersecurity stocks to invest in according to analysts.
The company’s multi-year overseas investments in AI infrastructure and cybersecurity are supporting a bullish case on the stock. On April 3, Microsoft Corp. (NASDAQ:MSFT) unveiled a $10 billion investment in Japan for the period from 2026 to 2029, amounting to roughly ¥1.6 trillion. It is Microsoft’s most significant investment in Japan ever. The investment comes after an earlier $2.9 billion investment in April 2024.
Under this investment program, the framework for initiatives to be taken is built around three key pillars. First is the technology pillar, which includes leveraging the in-country AI ecosystem via collaborations with Sakura Internet and SoftBank. Next is the trust pillar, which will be dedicated to establishing stronger cybersecurity partnerships with Japan’s National Cybersecurity Office and National Police Agency. Finally, the talent pillar will aim to train 1 million engineers and developers by 2030.
This announcement follows Microsoft’s current program that has already trained over 3.4 million individuals in Japan, resulting in a high level of AI adoption in Japan. Currently, almost one out of every five adults in Japan uses generative AI. The figure surpasses the world average. 94% of Nikkei 225 companies also employ Microsoft 365 Copilot. This strategy will solve the shortage of the AI and robotics workforce predicted at 3.26 million by 2040. Given current market trends, this is a substantial growth for Microsoft in the area.
Microsoft Corp. (NASDAQ:MSFT) is a technology leader that delivers software, cloud computing, and PC solutions. Some of its offerings include Microsoft 365 commercial, enterprise mobility, Power BI, Microsoft Teams, and security and compliance solutions. The company’s Intelligent Cloud segment includes its public cloud platform, Azure, that delivers server products and enterprise mobility services.
8. Varonis Systems Inc. (NASDAQ:VRNS)
Varonis Systems Inc. (NASDAQ:VRNS) is one of the 10 best cybersecurity stocks to invest in according to analysts.
The company’s innovative launches make it one of the top names across the cybersecurity universe. On March 17, Varonis Systems Inc. (NASDAQ:VRNS) introduced Atlas, an all-in-one solution that will help enterprises gain full control and visibility of the AI solutions that they build or operate. AI agents, copilots, and large language models have become integral parts of any enterprise workflow because they work quickly and interpret information effectively. But enterprises rarely know how many AI solutions are operating in their ecosystem, and the capabilities of these AI solutions remain unclear to them.
Atlas addresses this gap through full coverage of the AI security lifecycle, including discovery, posture management, runtime protection, and compliance through one product. The platform integrates with hosted AI platforms, custom language learning models, agentic technology systems, chatbots, and embedded AI technologies.
By integrating with the Varonis Data Security Platform, Atlas provides contextual data that independent AI security platforms lack. Features also include AI inventory and shadow AI discovery, security testing for vulnerabilities, guardrails for preventing data leaks during AI operations, compliance, and threat detection.
Varonis Systems Inc. (NASDAQ:VRNS) delivers software products and solutions that help with the classification of critical data and detecting advanced threats with AI-powered technology. Its Software-as-a-Service portfolio includes services for data access intelligence, discovery & classification, activity monitoring, and more. It also offers protection packages, database and email security capabilities, and on-premises subscription products.
7. Tenable Holdings Inc. (NASDAQ:TENB)
Tenable Holdings Inc. (NASDAQ:TENB) is one of the 10 best cybersecurity stocks to invest in according to analysts.
What makes Tenable Holdings Inc. (NASDAQ:TENB) stand out as one of the best cybersecurity stocks is the company’s focus on addressing market gaps. On April 15, it launched an advanced OT Asset Discovery Engine that is intended to provide protection for cyber-physical systems. This feature makes it possible to rapidly include the risks related to OT, IoT, and Shadow IT in the comprehensive picture of cyber exposure for organizations. It can be rolled out immediately without any extra cost for IT resources.
This new launch solves a vital problem, as over 50% of CISOs manage OT security. However, visibility has been a risky blind spot at the intersection of IT networks and cyber-physical systems. Concerns over disruptions have stifled efforts to enhance cybersecurity, and consequently, 45% of today’s OT breaches are triggered by IT systems. The first users also discovered 100 to 1000 plus hidden assets during the launch phase.
This engine has been designed to seamlessly incorporate itself into the Tenable One Exposure Management Platform. The organization will have immediate visibility of its previously undiscovered assets without disrupting operations. This can help the organization comply with regulations and help reduce risks from the very first day. Under existing market circumstances, this is a significant extension of Tenable’s capabilities in exposure management.
Tenable Holdings Inc. (NASDAQ:TENB) is a seller of cyber exposure management solutions. These include AI-powered software to identify and reduce security risks, cloud-based software for risk mitigation, management of web app scans, and end-to-end protection from identity-based threats, to name a few. It also provides on-premises vulnerability management and assessment solutions, security solutions for converged OT/IoT, and more.
6. Cellebrite DI Ltd. (NASDAQ:CLBT)
Cellebrite DI Ltd. (NASDAQ:CLBT) is one of the 10 best cybersecurity stocks to invest in according to analysts.
On March 31, Cellebrite DI Ltd. (NASDAQ:CLBT) announced the launch of the Spring 2026 Release, providing access to a great number of iOS and Android devices and operating systems. The release features support for iPhone 17 and iOS 26, along with Corellium, which was made public and can also be accessed on the Google Cloud platform.
Considering that 75% of devices in North America are locked when they reach forensics laboratories, the new version also comes with Safeguard Mode, which facilitates quick data extraction in emergencies. Forensic investigation capabilities for drones are also included in this release.
Back on March 18, Cellebrite DI Ltd. (NASDAQ:CLBT) announced the global availability of its AI-driven tool named Guardian Investigate, which revolutionizes the process of investigations with its innovative approach. In this solution, humans and AI are combined into a team to collaborate seamlessly and in real-time. Evidence is collected through documents, mobile forensics, phone metadata, and other digital evidence.
Team members from different departments and agencies will be able to collaborate while remaining accountable. The software helps close the increasing gap in resource availability and investigations. It provides real-time insight about a significant event when all decisions become critical for the case. This marks a considerable change in modern investigative management.
Cellebrite DI Ltd. (NASDAQ:CLBT) is a creator of services and solutions for legally sanctioned investigations. Its services portfolio includes a range of software used to manage digital evidence, digital forensics software, evidence management solutions, evidence sharing tools, and more. It also provides training and certification services and mobile vulnerability research.
While we acknowledge the potential of CLBT 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 CLBT and that has 100x upside potential, check out our report about the cheapest AI stock.
Click to continue reading and see the 5 Best Cybersecurity Stocks to Invest in According to Analysts.
Disclosure: None. Follow Insider Monkey on Google News.
