Cybersecurity is becoming more important every year as more companies move their work online. In a recent CNBC interview, the CEO of CyberArk, Matt Cohen, said that cyber threats are getting worse, not better. He explained that both people and machines now have digital identities, and hackers are trying to break into those more often. Because of this, businesses need stronger tools to protect their systems. Even though the economy has some uncertainty and trade problems, many companies are still spending money on cybersecurity.
Right now, some cybersecurity stocks are trading much lower than what analysts think they’re worth. These companies may not be in the headlines, but they are growing and could bounce back as the need for digital safety increases. In this article, we highlight 13 most undervalued cybersecurity stocks to buy right now. With increased urgency around digital defenses and identity management, these companies may offer investors a timely mix of value and growth potential.
A cybersecurity expert monitoring the security of the company’s assets, emphasizing the importance of data protection.
Our Methodology
To compile the list of 13 undervalued cybersecurity stocks to buy now, we reviewed cybersecurity ETFs to compile a preliminary list of stocks. We then filtered for stocks with a forward P/E of less than the sector median of 23.73x. We then sorted the list in ascending order of the number of hedge fund holders as of Q1 2025.
Note: All data was recorded on August 14, 2025.
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).
13 Most Undervalued Cybersecurity Stocks to Buy Now
13. NetScout Systems, Inc. (NASDAQ:NTCT)
Number of Hedge Fund Holders: 22
Forward P/E Ratio: 10.16x
NetScout Systems, Inc. (NASDAQ:NTCT) is one of the most undervalued cybersecurity stocks to buy now. NetScout Systems, Inc. (NASDAQ:NTCT) reported its Q1 Fiscal Year 2026 (ended June 30), earnings report on August 7. The company reported a revenue of $186.7 million for the quarter, a mild 7% increase on a year-over-year basis. However, product revenue grew 19.28% year-over-year, to $73 million. As of the end of the quarter, the company had a solid backlog of $30.9 million. The company’s service revenue remained flat at $113.8 million.
NetScout Systems, Inc. (NASDAQ:NTCT)’s net loss showed a drastic improvement to $6.6 million in Q1 FY2026, compared to the $463.3 million loss in the same quarter last year. The company’s full year FY 2026 revenue guidance remain in the range of $825 million to $865 million, which would represent a 0%-5% growth.
A few weeks back, the company announced a flurry of AI-backed improvements to its Arbor Edge Defense and DDoS (Distributed Denial of Service) Solutions, to recognize and mitigate threats in real time. This improvement leverages AI to automate defenses against the ever-sophisticated attacks. According to the company, this helps clients mitigate up to 80% of all DDoS attacks without the need for human analysis.
12. NICE Ltd (NASDAQ:NICE)
Number of Hedge Fund Holders: 23
Forward P/E Ratio: 11.96x
NICE Ltd (NASDAQ:NICE) is one of the most undervalued cybersecurity stocks to buy now. On July 28, DA Davidson initiated coverage on NICE Ltd (NASDAQ:NICE) with a Neutral rating and a price target of $195, implying over a 42% upside from the current price of $143.69. The firm’s initiation came after the Israeli company agreed to acquire Cognigy for $955 million.
Cognigy is a private company that provides enterprises with a platform that can help them build and manage AI-powered conversational agents, which help improve customer service and support. According to DA Davidson, the acquisition is a strategic step that could help NICE Ltd (NASDAQ:NICE), a global leader in AI-powered customer experience, further its position in the AI space, particularly in customer service and automation.
However, DA Davidson gave a caveat that the price Nice is paying for the acquisition is high based on the company’s current size. The price represents more than 10% of the company’s market cap. While DA Davidson thinks that the move has long-term benefits, it also believes the valuation is difficult to justify in the short term.
NICE Ltd (NASDAQ:NICE) offers a number of cybersecurity solutions, particularly focusing on financial crime. However, the company also provides customer experience management, AI-driven analytics, and workforce engagement.
11. A10 Networks, Inc. (NYSE:ATEN)
Number of Hedge Fund Holders: 24
Forward P/E Ratio: 21x
A10 Networks, Inc. (NYSE:ATEN) is one of the most undervalued cybersecurity stocks to buy now. On August 6, BTIG upgraded their rating on A10 Networks, Inc. (NYSE:ATEN) from Neutral to Buy. The upgrade comes on the back of stellar Q2 results, which beat consensus. The cybersecurity company reported a revenue of $69.38 million, a growth of over 15% on a year-over-year basis. Analysts had penciled in a revenue of $69.38 million. The company’s EPS stood at $0.21 per share as against a consensus estimate of $0.193 per share. A10’s net margin remains elevated at 15.19%.
BTIG set the price target at $22, a 23% implied upside from the current price of $17.88. The analyst said that the company is growing confident that it will continue to grow at a decent pace. It’s revenue is expected to grow at high-single digits this year, and “the possibility of crossing double-digit territory”, the analyst said. The analyst also increased his revenue estimate for the company by 2 percentage points citing that better execution in the last 4 quarters.
A10 Networks, Inc. (NYSE:ATEN) provides security application delivery and network infrastructure for edge cloud computing, hybrid cloud and on premises environments.
10. OneSpan Inc. (NASDAQ:OSPN)
Number of Hedge Fund Holders: 25
Forward P/E Ratio: 9.89x
On August 6, Rosenblatt analyst Catherine Trebnick maintained her Buy rating on OneSpan Inc. (NASDAQ:OSPN), while lowering the price target to $17 from $20. However, the current price target still represents a 23% upside from the current market price of $13.82. Trebnick reduced the company’s revenue outlook after the management said that it expects the softness in its hardware business to persist in the second half of this year. The hardware business represents nearly a third of the company’s business as of the end of 2024.
The company reported a revenue of $59.84 million in Q2, a 1.77% decline on a year-over-year basis. However, the company’s net income rose to $8.34 million, a 27.3% increase from the same quarter last year. That said, the company’s net margin narrowed from the previous quarter from 22.89% to a still healthy 13.94%.
OneSpan Inc. (NASDAQ:OSPN) is a leader in digital identity and authentication solutions. The company is seeing a strategic transformation through product innovation and targeted M&A. The stock is a great option for growth-oriented investors through its focus on authentication without the need for a password, enterprise integration, and digital workflows.
9. Extreme Networks, Inc. (NASDAQ:EXTR)
Number of Hedge Fund Holders: 27
Forward P/E Ratio: 20.38x
Extreme Networks, Inc. (NASDAQ:EXTR) is one of the most undervalued cybersecurity stocks to buy now. On August 7, Needham maintained its Buy rating on Extreme Networks, Inc. (NASDAQ:EXTR). Needham increased its price target from $20 to $24. That represents a juicy 21% upside from the current levels of $19.75. The recent raise in price target comes after the company delivered robust Q4 FY 2025 earnings. The company also guided FY26 ahead of consensus.
Extreme Networks, Inc. (NASDAQ:EXTR) reported a revenue of $307 million, a near 20% increase on a year-over-year basis. That said, the company is still struggling to make ends meet, reporting a net loss of $7.80 million. According to Needham though, the company reported a record net new SaaS ARR of $24 million and is showing strength in the APAC and EMEA regions.
Needham added in its research note that the company’s new Platform ONE launch in the September quarter should drive slow, steady acceleration in ARR and its differentiated campus fabric architecture to generate up-market share gains.
8. Qualys, Inc. (NASDAQ:QLYS)
Number of Hedge Fund Holders: 30
Forward P/E Ratio: 20.56x
Qualys, Inc. (NASDAQ:QLYS) is one of the most undervalued cybersecurity stocks to buy now. On August 6, Jefferies maintained its Hold rating on cybersecurity firm Qualys, Inc. (NASDAQ:QLYS), but increased its price target from $150 to $140. That is a 15.5% implied upside from the current market price of $129.87. Jefferies cited that the company faired “overall better than feared” in its Q2 earnings.
The company reported revenue of $163.88, a 9.9% increase year-over-year. The company continues to maintain strong net margins of 28.86% in Q2. That number has been steadily improving over the years, which suggests great operational efficiency. Its net income increased 10.5% to $47.29 million. The EPS stood at $1.68 per share, beating estimates of $1.48. Jefferies kept its FY 26 estimates for the company stable, citing that the current billings growth guidance of 6%-8% will “ultimately determine” the shape of the revenue next year.
Qualys, Inc. (NASDAQ:QLYS) has been taking several strides in cybersecurity. Recently, it introduced Cybersecurity Asset Management, which helps its clients detect at-risk (in terms of cyber risks) assets and mitigate them with appropriate actions.
7. Gen Digital Inc. (NASDAQ:GEN)
Number of Hedge Fund Holders: 31
Forward P/E Ratio: 12.73x
Gen Digital Inc. (NASDAQ:GEN) is one of the most undervalued cybersecurity stocks to buy now. On August 8, Barclays maintained its Equal Weight rating on Gen Digital Inc. (NASDAQ:GEN), while increasing its price target from $32 to $33. The stock was trading at $31.84 as of August 14, after climbing over 10% since its earnings on August 7. The jump leaves an upside of 3.6% according to Barclays.
Gen Digital posted revenue of $1.26 billion, a 30.5% increase, which was mostly as a result of the acquisition of MoneyLion. That said, the company beat analyst estimates of $1.19 billion. The company reported an EPS of $0.64 per share beating estimates of $0.60 per share.
Gen Digital Inc. (NASDAQ:GEN), a leader in consumer cybersecurity, owning brands like Norton, LifeLock and Avast, completed the acquisition of MoneyLion, a digital finance company in April for $1 billion. The acquisition helps Gen Digital access offer tools like credit building and financial management. MoneyLion’s financial tools include sensitive information like personal identifiers, banking data and credit scores. That is where Gen Digital’s identity theft protection services can add value.
6. Rapid7, Inc. (NASDAQ:RPD)
Number of Hedge Fund Holders: 36
Forward P/E Ratio: 10.85x
Rapid7, Inc. (NASDAQ:RPD) is one of the most undervalued cybersecurity stocks to buy now. On August 8, UBS maintained its Buy rating on Rapid7, Inc. (NASDAQ:RPD), and increased its price target from $30 to $34. UBS said the company’s Q2 FY 2025 earnings were “ok”. However, the latest price target represents a whopping 61% upside from the current market price of $21.08.
Rapid7, Inc. (NASDAQ:RPD) reported revenue of $214.2 million, barely beating analyst expectations of $212 million, but just a modest 3% year-on-year growth. The company’s EPS stood at $0.58 per share, which easily beat estimates of $0.44. The company confirmed its full-year revenue guidance of $858 million at the midpoint, a modest increase from the previous year’s revenue of $844 million. It also raised its full-year EPS guidance to $1.96, marking a 6.5% increase.
Rapid7, Inc. (NASDAQ:RPD)’s CEO Corey Thomas said in the company’s earnings call that its ARR (Annual Recurring Revenue) guidance was narrowed due to a shift toward larger, albeit less predictable deals amid ongoing volatility. Thomas said that the company is working to simplify adoption and is focusing instead on strategic, high-value customers over smaller, transactional ones.
5. Akamai Technologies, Inc. (NASDAQ:AKAM)
Number of Hedge Fund Holders: 40
Forward P/E Ratio: 11.23x
Akamai Technologies, Inc. (NASDAQ:AKAM) is one of the most undervalued cybersecurity stocks to buy now. On August 8, Scotialbank maintained its Outperform rating on Akamai Technologies, Inc. (NASDAQ:AKAM), citing “tidy” Q2 beat. The company raised its revenue and bottom-line guidance, Scotiabank said to investors in a research note.
The bank, however, reduced the price target from $105 to $95, as it believes the company must prove to investors that it can deliver by delivering some good reports. Yet, Scotiabank’s new lower price target still represents a 28.2% upside from the current price of $74.1. On August 7,
The company reported Q2 revenue of $1.04 billion, a 7% year-over-year jump. The earnings per share stood at $1.73 per share, beating the Wall Street estimate of $1.55 per share. For the full year 2025, the company anticipates revenue between $4.13 billion and $4.20 billion, a modest 4%- to 5% increase.
During the company’s Q2 earnings call, CEO Tom Leighton highlighted strong enterprise demand for API (Application Programming Interface) security and ransomware protection in the company’s security business. However, Leighton noted that older security products are growing more slowly, which is tempering the company’s cybersecurity segment’s overall pace.
4. Tenable Holdings, Inc. (NASDAQ:TENB)
Number of Hedge Fund Holders: 44
Forward P/E Ratio: 20.45x
Teneable Holdings, Inc. (NASDAQ:TENB) is one of the most undervalued cybersecurity stocks to buy now. On July 31, Wells Fargo raised its price target on Teneable Holdings, Inc. (NASDAQ:TENB) to $45 from $40 and kept an Overweight rating on the stock. That is an implied upside of 54% from the current price of $29.2.
The move came after the company reported quarterly results that showed improving demand. The company reported Q2 2025 revenue of $272.29, a robust 23% year-over-year growth. It reported an EPS of $o.34 per share, beating the Wall Street estimate of $0.30 per share. The company’s flagship product, Tenable One, is gaining traction. It is landing big deals with enterprises and the U.S. government. This progress points to stronger sales ahead. Wells Fargo believes that growth in Tenable’s Cloud Cybersecurity Business will continue getting better.
Analysts at Wells Fargo remain confident in Tenable’s future and continue to recommend buying the stock. They see the company well placed to expand its role in the cybersecurity market. As Tenable’s technology improves and more customers sign on, the company looks ready to benefit from the rising need for cybersecurity solutions.
3. CACI International, Inc. (NYSE:CACI)
Number of Hedge Fund Holders: 52
Forward P/E Ratio: 17.96x
CACI International, Inc. (NYSE:CACI) is one of the most undervalued cybersecurity stocks to buy now. On August 8, Truist analyst Tobey Sommer raised the price target for CACI International, Inc. (NYSE:CACI) to $575, up from the previous $550, an implied upside of 16.3% from the current level of $493.99. Sommer kept a Buy rating on the stock. He said the company is still his top pick among government service companies. He pointed to the company’s higher full-year 2026 outlook as a main reason. He also noted CACI’s ability to win new contracts and its strong position under the current U.S. administration.
In his note to investors, Sommer explained that CACI’s business model fits well with the government’s current priorities. This gives the company a better chance of gaining more work in the future. He believes that CACI is well-placed to grow over the next few years. The stock has done well recently, and the raised price target shows that Truist expects continued improvement. Sommer’s note suggests CACI International, Inc. (NYSE:CACI) has a clear path to growth, and that the risks are worth the possible rewards.
2. Dell Technologies Inc. (NYSE:DELL)
Number of Hedge Fund Holders: 63
Forward P/E Ratio: 14.84x
Dell Technologies Inc. (NYSE:DELL) is one of the most undervalued cybersecurity stocks to buy now. On July 18, Bank of America maintained its Buy ratings on Dell Technologies Inc. (NYSE:DELL), while increasing its price target from $155 to $165. The stock is currently trading at $139.16, meaning BofA thinks there is a 18.5% upside for the stock. The firm expects IT hardware companies like Dell Technologies Inc. (NYSE:DELL) to benefit from the growth of enterprise/sovereign AI over the next decade.
In August, Macquarie Data Centres partnered with Dell to deliver AI infrastructure in Australia. The collaboration will see the Dell AI Factory with Nvidia hosted in the former’s upcoming IC3 Super West data centre, built to support high-performance AI workloads. This joint venture targets heavily regulated sectors like healthcare and finance, aligning with Australia’s national push for secure and sovereign AI capabilities.
In May, the company announced a battery of updates for its AI Factory offerings to help enterprises easily deploy, manage and scale AI. The updates include new AI computers, energy-efficient data center inventions and collaborations with tech giants like Meta and Nvidia. By taking care of the main obstacles to AI’s adoption, Dell is positioning itself as a an important cog in AI-enabling.
Dell Technologies Inc. (NYSE:DELL), offers a comprehensive suite of end-to-end cybersecurity solutions to enterprises, like data protection, recovery capabilities and threat detection.
1. Cisco Systems, Inc. (NASDAQ:CSCO)
Number of Hedge Fund Holders: 82
Forward P/E Ratio: 17.51x
Cisco Systems, Inc. (NASDAQ:CSCO) is one of the most undervalued cybersecurity stocks to buy now. On August 5, UBS kept its Neutral rating on Cisco Systems, Inc. (NASDAQ:CSCO), while increasing the price target from $70 to $74. The firm’s latest price target represents a 10% upside. UBS cited that increasing campus and data center demand could lead to an earnings beat in Q2.
Cisco Systems, Inc. (NASDAQ:CSCO) reported Q4 FY 2025 (ended July 30) revenue of $14.67 billion, up 8% year-over-year, with full-year revenue reaching $56.65 billion, a 5.3% growth from FY 2024. The company’s The networking giant said that its AI infrastructure orders from webscale customers exceeded $2 billion for the fiscal year 2025, twice as much as it had projected. CEO Chuck Robbins cited innovation and execution as key drivers, positioning Cisco to lead the AI era through a shift in infrastructure architecture.
Cisco posted strong Q4 margins and EPS (non-GAAP) above guidance, with EPS at $0.99 per share, beating analysts’ estimates of $0.977 per share. For the whole year, EPS rose to $3.81, a paltry 2.1% growth. CFO Mark Patterson emphasized strategic investments and profitable growth ahead. For Fiscal year 2026, the company projected revenue between $59 billion and $60 billion, and that for EPS of $4.06 per share, reflecting continued momentum despite tariff impacts.
Cisco Systems, Inc. (NASDAQ:CSCO) is a major player in cybersecurity, with offerings including a comprehensive suite of security solutions. The company is known for integrating security into its networking infrastructure and leveraging AI to enhance their security capabilities.
While we acknowledge the potential of CSCO as an investment, 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 CSCO and that has a 100x upside potential, check out our report about this cheapest AI stock.
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