In this article, we will look at the 10 best cybersecurity stocks to invest in under $20.
The cybersecurity sector is at a tipping point, driven by growing cyber threats, breakthrough technologies such as AI and IoT, and a renewed focus on national security and digital infrastructure. Despite a well-documented talent scarcity and evolving geopolitical concerns, the industry continues to grow rapidly, creating an ideal environment for innovation and investment.
According to Fortune Business Insights, the worldwide cybersecurity industry was valued at $172.24 billion in 2023 and is expected to reach $562.72 billion by 2032, expanding at a CAGR of 14.3%. North America, notably the United States, dominates this environment, driven by the growth of e-commerce platforms, increased digital adoption in industries such as BFSI and healthcare, and greater consumer awareness. Cloud computing, AI, machine learning, and IoT technologies are now at the forefront of current cybersecurity solutions, allowing enterprises to identify and prevent digital breaches in real time.
However, as technology advances, so do the hazards. McKinsey’s November 2024 report underlines the critical need to make AI systems more secure, advising cybersecurity providers to focus on the dual problem of protecting both their own AI models and those used by their clients. Generative AI and third-party integrations provide new attack surfaces, necessitating the use of smarter, more adaptive protection technologies.
The need is further heightened by significant policy developments. According to WIRED, former President Trump slapped punitive tariffs on technology imports, sending shockwaves across the semiconductor and e-commerce sectors. While some tech businesses may profit from increased demand for logistics and supply chain management technologies, others, such as major tech giants, saw their stock prices fall sharply due to concerns about inflation and disrupted trade routes. Tariffs on goods from China and other significant nations may boost consumer prices and limit the supply of critical cybersecurity components, particularly for cloud and data center operators.
In the meantime, firms’ stakes are still rising. Nearly half of American businesses have experienced significant revenue losses as a result of data breaches, according to Arcserve and IBM. In 2024, the average cost of a breach was close to $4.9 million; when events took more than 200 days to identify, the cost increased to $5.5 million. The threat surface is growing due to generative AI, and just 40% of SaaS services are actively monitored for security, further taxing already overworked security teams.
According to Forbes, there is a paradox in the workforce, despite a 4.8 million cybersecurity expert deficit worldwide, thousands of competent IT workers are still underutilized as a result of strict recruiting practices and a lack of investment in local talent development. While degrees and certifications are still important, practical experience gained through laboratories, bug bounty programs, or internships has emerged as the key differentiator.
When combined, these patterns point to a fundamental transformation of the cybersecurity sector as well as an increase in demand for cybersecurity services. Cybersecurity firms that can innovate at scale while navigating governmental changes and global uncertainties are being keenly watched by investors, particularly those keeping an eye on high-growth tech industries. In light of this, we now concentrate on the 10 Best Cybersecurity Stocks to Invest in Under $20.
Methodology
In order to find the Best Cybersecurity Stocks to invest in under $20, we started by searching for companies working in the cybersecurity sector using the Finviz stock screener, applying a price filter to include just those trading below $20 per share. Following the compilation of the list, we used Insider Monkey’s hedge fund holdings database to analyze hedge fund sentiment for each stock. Next, we arranged the stocks according to the number of hedge funds that owned each one in ascending order, as per Insider Monkey’s database of Q4 2024. The final list consists of cybersecurity stocks under $20 that are currently overlooked by institutional investors, perhaps representing discounted chances in a quickly changing field.
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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
10. Telos Corporation (NASDAQ:TLS)
Share Price: $2.680
Number of Hedge Fund Holders: 8
Telos Corporation (NASDAQ:TLS) provides cloud, enterprise, and cybersecurity solutions to both commercial and governmental customers globally. Security Solutions and Secure Networks are the company’s two primary business categories. Its flagship solutions are IDTrust360 for trusted identity services and Xacta for cyber risk management.
Telos Corporation (NASDAQ:TLS) reported revenue of $26.4 million for the fourth quarter ended December 31, 2024. This revenue was close to the top of its guidance range and represented an 11% sequential growth. Security Solutions accounted for 83% of total sales with a 20% sequential growth in revenue. The cash gross margin hit a record 47%, its highest level since the company’s 2020 IPO, while the GAAP gross margin increased by almost 600 basis points year-over-year to 40.3%. The company also predicted positive cash flow for the first quarter of 2025 and drastically cut its adjusted EBITDA deficit to just $200,000.
A $5.8 million contract award to support the Department of Defense’s Microwave Line of Sight (MLoS) program was announced by Telos Corporation (NASDAQ:TLS) on April 10, 2025. This enhances Telos’ standing in providing warfighters with a secure and adaptable communications infrastructure. Additionally, Telos Corporation (NASDAQ:TLS) gained access to a government market opportunity valued at about $35 billion on January 29, 2025, when it was awarded prime contractor status for the U.S. Navy’s SeaPort Next Generation (SeaPort NxG) contract.
Telos Corporation (NASDAQ:TLS) stands out as one of the best cybersecurity companies under $20 heading into 2025, thanks to a rising backlog of federal contracts, improving margins, and the ramping up of significant programs like TSA PreCheck and DMDC.
9. Arqit Quantum Inc. (NASDAQ:ARQQ)
Share Price: $15.15
Number of Hedge Fund Holders: 8
London-based cybersecurity company, Arqit Quantum Inc. (NASDAQ:ARQQ) specializes in quantum-safe encryption using its QuantumCloud platform, which generates unbreakable encryption keys. The company helps businesses future-proof their data from quantum risks by offering maintenance, support, and expert services for its solutions. With its stock increasing 186.5% over the last six months, Arqit Quantum Inc. has attracted a lot of attention and demonstrated growing investor trust.
Throughout fiscal 2024, Arqit Quantum Inc. (NASDAQ:ARQQ) made significant progress in enhancing client interaction in the government and telecom industries. By collaborating with eight significant telecom companies and forming a historic alliance with Sparkle to deliver Quantum-Safe network services in 33 countries, it accomplished significant milestones. Arqit started generating revenue under a multi-year, seven-figure contract that it had negotiated with a Middle Eastern government agency. The company signed 13 contracts this year, up from seven in 2023, and increased its government clientele.
Arqit’s fiscal 2024 revenue was $293,000, compared to $640,000 in 2023, as a result of a strategic change from perpetual licenses to operational recurring licenses. Disciplined cost control measures resulted in a significant reduction of administrative expenses to $23.5 million. With $18.7 million in cash at the conclusion of the fiscal year on September 30, 2024, the company ensured stability to support continued growth plans.
On April 16, 2025, Arqit Quantum Inc. (NASDAQ:ARQQ) further strengthened its executive team by appointing cybersecurity expert Jonathan Nguyen-Duy as Chief Technology Officer. As Arqit expands its quantum-safe encryption products, his extensive experience at Intel, Fortinet, and Verizon is anticipated to spur innovation. For investors interested in next-generation data security, Arqit Quantum Inc. (NASDAQ:ARQQ) stands out as one of the best cybersecurity stocks under $20 due to its solid strategic positioning and increased awareness of quantum hazards.
8. Allot Ltd. (NASDAQ:ALLT)
Share Price: $6.01
Number of Hedge Fund Holders: 12
Based in Israel, Allot Ltd. (NASDAQ:ALLT) is a multinational provider of network intelligence and cybersecurity solutions. The company provides advanced network management tools and security-as-a-service (SECaaS) to governments, businesses, and telecom carriers globally. Allot helps shield millions of users from ransomware, phishing, and malware assaults with its single Allot Secure platform. Over the last six months, Allot’s stock has increased by 68.65%, indicating rising investor confidence.
After a $53 million loss in 2023, Allot Ltd. (NASDAQ:ALLT) reported $92.2 million in revenue at the end of fiscal 2024 and achieved a spectacular return to profitability with a non-GAAP net income of $1.6 million. Its annual recurring revenue (ARR) increased by 43% to $18.2 million, while its cybersecurity as a service (CSaaS) division witnessed a 56% increase in revenue year-over-year.
On April 22, 2025, Allot Ltd. (NASDAQ:ALLT) announced the introduction of its OffNetSecure product, marking a significant milestone for the company. This device turns a long-standing security blind spot into a business opportunity for service providers by providing cyber protection to telecom consumers even when they connect outside of their primary networks. OffNetSecure increases user adoption rates by integrating with current telecom apps in a seamless manner without requiring upgrades or downloads from users.
With the recent signing of significant contracts with Verizon Business and Vodafone UK, Allot Ltd. (NASDAQ:ALLT) strengthened its position and increased its presence among top telecom providers. Allot is one of the best cybersecurity stocks under $20 for investors looking to gain exposure to this rapidly expanding industry because of its creative solutions and solid telco relationships, which are in line with the growing demand for complete mobile security on a global scale.
7. Identiv, Inc. (NASDAQ:INVE)
Share Price: $3.25
Number of Hedge Fund Holders: 12
Leading developer of specialized IoT and RFID solutions, Identiv, Inc. (NASDAQ:INVE) serves a variety of industries, including consumer products, healthcare, and pharmaceuticals. Identiv, which has its headquarters in Santa Ana, California, specializes in gadgets that integrate or affix to tangible objects to provide distinct digital identities for improved user experiences, real-time tracking, and verification. Since its founding in 1990, the company has progressively established a solid reputation for safely bridging the digital and physical worlds.
Identiv, Inc. (NASDAQ:INVE) had a revolutionary year in 2024, turning into a pure-play IoT company with an exclusive RFID focus. Revenue for the fourth quarter was $6.7 million, above forecast, and for the full year it was $26.6 million. Identiv made great progress by moving 75% of manufacturing to a new, low-cost plant in Thailand, aiming for a long-term gross margin of 35%, despite revenue challenges from the production change. Future growth is anticipated to be driven by new product developments, such as BLE-enabled healthcare and smart packaging devices.
On February 27, 2025, Identiv, Inc. (NASDAQ:INVE) also revealed a significant strategic alliance with Novanta Inc. to expedite the use of RFID in medical equipment. Identiv’s RFID inlays and Novanta’s ThingMagic readers will be combined to provide end-to-end solutions that will enhance patient safety and spur product development. “Facilitate the adoption of RFID technology in critical medical device applications” is what CEO Kirsten Newquist highlighted as the outcome of this collaboration.
Furthermore, Identiv, Inc. (NASDAQ:INVE) is well-positioned for margin expansion and operational leverage thanks to its Perform, Accelerate, Transform (PAT) strategy, which focuses on growing in high-value healthcare and logistics verticals. The company’s transition period appears to be almost finished, and the foundation for scalable, profitable development in 2025 is solidly established thanks to significant macro tailwinds in cybersecurity and IoT digitization.
6. Comtech Telecommunications Corp. (NASDAQ:CMTL)
Share Price: $1.43
Number of Hedge Fund Holders: 15
Comtech Telecommunications Corp. (NASDAQ:CMTL) is a multinational supplier of secure communication and next-generation telecommunications technology to both domestic and foreign markets. Comtech Telecommunications Corp. provides essential connectivity solutions, such as satellite communications, 5G location-based services, and sophisticated cybersecurity-enabled emergency response systems, through its Satellite and Space Communications and Terrestrial and Wireless Networks businesses.
After a challenging period, Comtech Telecommunications Corp. (NASDAQ:CMTL) is demonstrating notable operational gains. The company’s consolidated net sales during the second quarter, ended January 31, 2025, were $126.6 million, and its gross margins improved dramatically over the previous quarter. New cloud-based emergency response products and rising global demand for 5G secure location technologies are driving the Terrestrial and Wireless Networks segment’s continued growth. Strong cybersecurity measures are integrated into these solutions, which are especially important for public safety applications like NextGen 911 systems that need to secure sensitive real-time data from new cyberthreats.
Comtech’s satellite and space communications section is also focused on cybersecurity. Comtech Telecommunications Corp. (NASDAQ:CMTL) declared on April 9, 2025, that it had finished the first deployments of its next-generation VSAT equipment to a significant allied Navy partner in the Asia-Pacific area. These systems, which are based on its ELEVATE platform, reduce the risk of signal interception and cyber interference by utilizing spread-spectrum strategies, sophisticated IP traffic optimization, and secure multi-orbit SATCOM technology. These characteristics serve mission-critical cybersecurity and anti-jamming requirements by enhancing resilience across air, land, and marine communications.
More than $26 million in sole-source contracts from L3Harris, which supported the U.S. Army and Air Force’s anti-jamming modem requirements, further demonstrated Comtech’s increasing strategic significance. Comtech’s position as a growing force in secure defense telecommunications is highlighted by these high-assurance communications products.
Comtech Telecommunications Corp. (NASDAQ:CMTL) is one of the best cybersecurity stocks under $20 to watch because of its strengthening balance sheet, fresh expansion plans, and increased emphasis on safe, cyber-resilient communications.
5. BlackBerry Limited (NYSE:BB)
Share Price: $3.66
Number of Hedge Fund Holders: 23
Leading the way in intelligent security software and services for businesses and governments worldwide is BlackBerry Limited (NYSE:BB). The company offers products like BlackBerry Dynamics, UEM solutions, and vital event management tools like AtHoc through its Secure Communications, QNX, and Licensing sectors. Additionally, it creates IoT solutions, cybersecurity technologies, and QNX vehicle platforms for industries like logistics, healthcare, and automotive.
With Q4 revenue of $141.7 million, BlackBerry Limited (NYSE:BB) exceeded the upper end of guidance and demonstrated a good fiscal 2025 performance. Secure Communications’ $67.3 million in revenue was bolstered by multi-year agreements with US law firms and government bodies. On April 22, 2025, the U.S. Joint Authorization Board announced that BlackBerry AtHoc had achieved FedRAMP High Authorization, highlighting the cybersecurity prowess of BlackBerry’s Secure Communications group. This accomplishment strengthens AtHoc’s standing as a trusted partner among important federal agencies and improves its defenses against operational disruptions and cyberattacks.
Additionally, BlackBerry Limited (NYSE:BB) improved its financial base and kept important AI/ML patents when it sold Cylance to Arctic Wolf. The company now has a healthy net cash position of over $200 million after cash and investments increased by $144 million in Q4. In fiscal 2025, adjusted EBITDA was $39.3 million, up $54 million from the previous year. In fiscal 2026, the company anticipates revenue of between $504 million and $534 million, with a target of approximately $35 million in positive operational cash flow.
BlackBerry Limited (NYSE:BB) is one of the best cybersecurity stocks under $20 for investors looking for operational resilience and growth potential in the secure communications space because of its strategic repositioning, strong federal cybersecurity validation, and emphasis on high-margin Secure Communications services.
4. OneSpan Inc. (NASDAQ:OSPN)
Share Price: $15.44
Number of Hedge Fund Holders: 25
Thanks to major operational enhancements and strategic initiatives, OneSpan Inc. (NASDAQ:OSPN) is establishing a solid reputation in the fields of cybersecurity and digital identification. OneSpan, headquartered in Boston, provides digital workflow, security, authentication, and identity solutions throughout Asia-Pacific, EMEA, and the Americas.
OneSpan Inc. (NASDAQ:OSPN) achieved a record adjusted EBITDA of $73 million, or 30% of revenue, in fiscal year 2024, which concluded on December 31, 2024. This achievement demonstrated the company’s effective shift to higher-margin software and services. ARR (annual recurring revenue) increased 8.5% to $168 million, driven by 6% growth in security and 12% growth in digital agreements.
Subscription income increased more than 30%, accounting for 57% of total revenue. The strategic shift away from lower-margin hardware, while having a minor influence on total sales growth, significantly increased profitability and operational efficiency. OneSpan generated $56 million in operating cash flow and ended the year with $83 million in cash and no long-term debt, which shows that the company is well-positioned for future investments and shareholder returns.
Operationally, both the Security and Digital Agreements divisions were profitable during the year. With a new CTO who specializes in digital identity, OneSpan is strengthening its R&D skills to maintain its leadership in authentication and e-signatures. OneSpan Inc. (NASDAQ: OSPN) stands out as one of the best cybersecurity stocks under $20, providing an appealing mix of growth, profitability, and shareholder returns.
3. Mitek Systems, Inc. (NASDAQ:MITK)
Share Price: $8.30
Number of Hedge Fund Holders: 26
Mitek Systems, Inc. (NASDAQ:MITK) is emerging as one of the finest cybersecurity companies under $20 due to its strong position in the rapidly growing digital identity verification and fraud prevention areas. Mitek, headquartered in San Diego, California, provides a comprehensive portfolio of mobile image capture and digital identity products, including Mobile Deposit, Mobile Verify, MiSnap, Check Fraud Defender, MiVIP, and MiPass. Its cutting-edge tools enable secure transactions in the banking, finance, and corporate sectors worldwide.
Mitek Systems, Inc. (NASDAQ:MITK) reported positive results for its fiscal first quarter ending December 31, 2025. Total revenue increased marginally to $37.3 million, despite timing-related slowness in mobile deposit renewals. Notably, Identity product revenue increased 13% year-over-year, and the company maintained a good non-GAAP gross margin of 84%. Adjusted EBITDA increased 32% to $7.8 million, representing a respectable 21% margin. Mitek’s free cash flow generation remained high, reaching $40.2 million over the last year, offering it flexibility as it prepares to meet the maturity of its 2026 convertible note.
Mitek’s Check Fraud Defender product continues to grow significantly, with an annual contract value (ACV) approaching $12 million. Management reiterated its fiscal 2025 revenue projection, estimating $170-$180 million and improving the adjusted EBITDA margin outlook to 25%-28%.
Changes in strategic leadership contributed to increased optimism. Garrett Gafke, an industry veteran, was appointed Chief Operating Officer by Mitek Systems, Inc. (NASDAQ:MITK) on April 28, 2025. Gafke is a renowned pioneer in digital identity and fraud prevention. His hiring strengthens Mitek’s strategic focus on expanding growth, especially as financial institutions and organizations throughout the world prioritize digital security and fraud prevention.
As digital fraud concerns increase and institutions need more secure, automated identity verification solutions, Mitek’s specialized services and rising SaaS revenue streams position it for long-term, sustainable growth. Mitek Systems, Inc. (NASDAQ:MITK) is one of the best cybersecurity stocks with a strong balance sheet, recurrent revenue momentum, and new leadership.
2. A10 Networks, Inc. (NYSE:ATEN)
Share Price: $16.40
Number of Hedge Fund Holders: 30
A10 Networks, Inc. (NYSE:ATEN) is a new cybersecurity and infrastructure solutions provider that serves businesses, governments, and telecom carriers globally. A10 Networks, known for its extremely efficient and secure technologies, has been expanding into the rapidly rising AI data center market. With excellent financials, outstanding innovation, and recent strategic acquisitions, the company is establishing itself as a significant competitor in cybersecurity and AI-powered networking solutions.
In 2024, A10 Networks, Inc. (NYSE:ATEN) witnessed enterprise revenues grow 6% and service provider revenues rise 2.5%, reversing previous year decreases. Security-led revenue, a significant strategic priority, increased 9% year-over-year to 63% of overall revenue, approaching the company’s long-term aim of 65%. A10 Networks, Inc. (NYSE:ATEN) also returned capital to shareholders through dividends and share repurchases, demonstrating its strong cash creation from operations of $90.5 million.
A10 Networks, Inc. (NYSE:ATEN) increased its cybersecurity portfolio on February 12, 2025, with the acquisition of ThreatX Protect, a premier web application and API protection (WAAP) product. The acquisition enhances A10’s Defend platform with powerful AI-driven behavioral threat identification and bot control capabilities. With the proliferation of AI applications, ThreatX Protect enhances A10 Networks’ hybrid cybersecurity capabilities by protecting apps and APIs across public, private, and on-premises settings.
A10 Networks, Inc. (NYSE:ATEN), with its underrated positioning, strong focus on cybersecurity innovation, and share price under $20, stands out as one of the best cybersecurity stocks to keep an eye on.
1. SentinelOne, Inc. (NYSE:S)
Share Price: $18.42
Number of Hedge Fund Holders: 46
SentinelOne, Inc. (NYSE:S) is a leading worldwide cybersecurity company based in Mountain View, California. The company’s AI-powered Singularity Platform enables autonomous threat prevention, detection, and response across endpoints, cloud workloads, and identity credentials. The company has rapidly expanded beyond traditional endpoint protection, now delivering solutions for cloud security, exposure management, identity protection, and its flagship AI security agent, Purple AI. SentinelOne, Inc. (NYSE:S) continues to disrupt the $100 billion cybersecurity sector with rapid innovation and a robust partner ecosystem.
SentinelOne, Inc. (NYSE:S) reported strong performance for the fourth quarter of 2025, ended January 31, 2025. Revenue increased 29% year-over-year to $226 million, with annual recurring revenue (ARR) totaling $920 million. More than half of SentinelOne’s bookings now come from non-endpoint solutions, indicating widespread use of their AI SIEM, cloud, and data security capabilities. The company had record operating margins and positive free cash flow for the entire year. SentinelOne’s Singularity Platform once again stood out in the MITRE ATT&CK Evaluations, obtaining 100% detection with no detection delays and 88% fewer alarms than competitors, demonstrating its real-time, high-fidelity protection.
SentinelOne, Inc. (NYSE:S)’s strategic goals gained traction following two key announcements. On April 24, 2025, the firm announced a new agreement with Nord Security to integrate its endpoint protection with the NordLayer network security technology. This partnership, which is already available through Pax8, allows small and medium-sized organizations (SMBs) to automate the disconnection of compromised devices while seamlessly integrating endpoint and network defense. The firms demonstrated their unified solution at RSAC 2025, demonstrating SentinelOne’s dedication to developing a holistic security ecosystem.
SentinelOne, Inc. (NYSE:S) anticipates reaching a significant milestone in its growth trajectory in fiscal 2026 when both ARR and revenue transcend $1 billion for the first time. By strengthening free cash flow generation, preserving industry-leading gross margins, and expanding its AI-native security products, the company is committed to fostering premium growth. For investors looking for a next-generation leader, SentinelOne (NYSE:S) stands out as one of the best AI cybersecurity stocks under $20 thanks to its distinct technological advantage, award-winning platform, and recent strategic alliances.
Overall, SentinelOne, Inc. (NYSE:S) ranks first on our list of the best cybersecurity stocks to invest in under $20. While we acknowledge the potential of S, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than S but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
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