14 Most Undervalued Cybersecurity Stocks to Invest In

In this article, we will discuss 14 Most Undervalued Cybersecurity Stocks to Invest In.

When it comes to cybersecurity stocks, billionaires and hedge fund managers aren’t debating if the sector matters; they’re debating how much of it to own. In a market flooded with hype-driven narratives around AI and speculative bets like quantum computing, cybersecurity stands out as something far more grounded: a mission-critical necessity with structural, non-negotiable demand.

For the smart money, this isn’t just another tech theme; it’s closer to infrastructure. Investors like Ken Griffin and Paul Tudor Jones have long favored businesses with recurring revenue, high switching costs, and products customers simply cannot live without. Cybersecurity fits that mold perfectly. Companies don’t “cut back” on protecting their data; they double down, especially as threats grow more sophisticated.

And those threats are accelerating. The rise of artificial intelligence, increasing geopolitical tensions, and the rapid digitization of global economies are creating a perfect storm. From a macro perspective, especially one that would resonate with investors like Ray Dalio, more digital infrastructure inevitably means more vulnerabilities. That translates into a long runway of sustained spending, regardless of economic cycles.

But this isn’t a blanket buy-the-sector trade. Hedge funds are highly selective, concentrating capital in dominant cybersecurity companies, which are leading the shift from fragmented point solutions to integrated security ecosystems. This “platform consolidation” trend is where many believe the real alpha lies.

The bottom line? Cybersecurity isn’t about chasing the next big thing; it’s about owning a piece of the digital economy’s backbone. And in a world where cyber threats are only growing, that backbone is becoming more valuable by the day.

With this context in mind, here is a list of 14 most undervalued cybersecurity stocks to invest in.

Our Methodology

We used screeners to identify cybersecurity stocks that are trading under a forward P/E of 15, and limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment. These stocks are also popular among analysts and elite hedge funds. We have ranked the stocks in descending order of their forward P/E ratios to make the list easier to navigate.

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).

14 Most Undervalued Cybersecurity Stocks to Invest In

14. Cognyte Software Ltd. (NASDAQ:CGNT)

Forward P/E: 12.55

On March 25, Cognyte Software Ltd. (NASDAQ:CGNT) reported fourth-quarter revenue of $106.2 million, broadly in line with expectations, while highlighting strong growth, improved margins, and enhanced profitability. CEO Elad Sharon emphasized the company’s continued focus on advancing AI-driven analytics capabilities, enabling customers to generate actionable intelligence more efficiently in mission-critical environments. As global security threats grow more complex, Cognyte’s positioning at the intersection of data analytics and operational intelligence supports its long-term growth ambitions heading into fiscal 2028.

On the same day, Cognyte Software Ltd. (NASDAQ:CGNT) announced a new $5 million contract with a major U.S. state law enforcement agency, which will deploy the company’s tactical SIGINT solution to support real-time investigations and field operations. The contract represents a significant competitive win, displacing an incumbent provider and establishing a foothold with a Tier-1 customer in North America. Management views this as a strategic entry point for future expansion across its broader investigative analytics platform.

Cognyte Software Ltd. (NASDAQ:CGNT) is a global provider of investigative analytics solutions designed to help governments and enterprises process large and complex data sets to identify and prevent threats. Incorporated in 2020 as a spin-off from Verint Systems and headquartered in Herzliya, Israel, the company focuses on delivering actionable intelligence for national security and public safety.

13. Box, Inc. (NYSE:BOX)

Forward P/E: 12.48

On April 2, Box, Inc. (NYSE:BOX) announced the general availability of Box Agent, a unified AI-powered engine designed to enhance enterprise productivity by enabling users to securely search, analyze, and generate content across organizational data. The platform leverages advanced reasoning models to provide deeper insights into enterprise content, marking a significant step forward in Box’s strategy to integrate AI directly into its core content management ecosystem. The launch also included enhancements to Box AI Studio, further expanding the company’s capabilities in enterprise AI deployment.

On March 23, William Blair downgraded Box, Inc. (NYSE:BOX) to Market Perform from Outperform, citing increased uncertainty introduced by AI across the software sector. The firm noted that infrastructure software companies are entering a transitional phase, where they must rethink product offerings, pricing strategies, and go-to-market approaches in response to rapidly evolving AI capabilities. This shift introduces both opportunities and risks, as companies like Box work to redefine their value propositions in an increasingly competitive landscape.

Box, Inc. (NYSE:BOX) is an Intelligent Content Cloud platform that provides secure file sharing, content management, and workflow automation solutions for enterprises. The company offers robust security and compliance features, including tools like Box Shield and Box Governance, which are critical for regulated industries. As organizations increasingly prioritize data security and AI-driven productivity, Box’s platform positions it to capitalize on the convergence of content management and intelligent automation, ranking it among the most undervalued cybersecurity stocks to invest in.

12. Akamai Technologies, Inc. (NASDAQ:AKAM)

Forward P/E: 11.73

On April 7, Akamai Technologies, Inc. (NASDAQ:AKAM) announced a strategic partnership with Arrow Electronics to expand access to its cloud, security, and application delivery solutions through Arrow’s enterprise computing ecosystem. This collaboration is designed to accelerate the adoption of Akamai’s offerings across a broader network of technology vendors and channel partners, enabling enterprises to deploy secure and scalable digital infrastructure more efficiently. The partnership reflects Akamai’s continued push to strengthen its presence beyond its traditional CDN business.

On the same day, Piper Sandler raised its price target on Akamai Technologies, Inc. (NASDAQ:AKAM) to $114 from $97 while maintaining a Neutral rating, noting a more constructive view on the company’s long-term growth narrative. The firm acknowledged that Akamai’s transition toward a security and cloud platform is gaining traction, although it believes much of the anticipated upside is already reflected in the stock’s valuation.

Akamai Technologies, Inc. (NASDAQ:AKAM) is a leading provider of content delivery, cloud computing, and cybersecurity solutions, operating one of the largest distributed edge networks globally. Founded in 1998 and headquartered in Cambridge, Massachusetts, the company enables faster, more reliable, and secure digital experiences. As businesses increasingly rely on edge computing and secure application delivery, Akamai’s evolving platform positions it to benefit from long-term growth in digital infrastructure demand.

11. TD SYNNEX Corporation (NYSE:SNX)

Forward P/E: 11.46

On April 2, Goldman Sachs raised its price target on TD SYNNEX Corporation (NYSE:SNX) to $205 from $180 while maintaining a Buy rating, citing incremental upside to earnings estimates and potential for multiple expansion driven by the company’s Hyve business. The firm highlighted strong demand trends in infrastructure solutions, which are contributing to improved profitability and long-term growth prospects.

On April 1, BofA also raised its price target on TD SYNNEX Corporation (NYSE:SNX) to $200 from $180 following a strong fiscal Q1 performance that exceeded expectations. The company delivered a notable earnings beat and provided guidance above consensus for Q2, reinforcing confidence in its operational execution. While the firm remains cautiously optimistic given macroeconomic uncertainties and geopolitical risks, it sees continued momentum into the second half of the year.

One of the most undervalued cybersecurity stocks to invest in, TD SYNNEX Corporation (NYSE:SNX) is a global IT distributor and solutions aggregator formed through the merger of Tech Data and SYNNEX Corporation. The company plays a critical role in the technology supply chain, connecting vendors with resellers and enterprise customers. With cybersecurity emerging as a key growth segment and increasing demand for integrated IT solutions, TD SYNNEX is well-positioned to benefit from long-term trends in enterprise technology adoption.

10. Qualys, Inc. (NASDAQ:QLYS)

Forward P/E: 10.43

On April 14, TD Cowen analyst Shaul Eyal lowered the firm’s price target on Qualys, Inc. (NASDAQ:QLYS) to $90 from $145 while maintaining a Hold rating ahead of the company’s Q1 earnings report. Despite a significant compression in valuation, the firm remains cautious due to intensifying competition in the vulnerability management space. The emergence of AI-driven tools capable of automating vulnerability detection introduces additional uncertainty around the long-term size and structure of the addressable market, potentially challenging traditional providers like Qualys.

The previous day, RBC Capital also reduced its price target on Qualys, Inc. (NASDAQ:QLYS) to $85 from $134 while maintaining a Sector Perform rating, as part of a broader reassessment of software stocks. The firm highlighted weak sector sentiment driven by macroeconomic volatility, geopolitical risks, and the disruptive impact of AI technologies. These dynamics are expected to contribute to muted earnings results and cautious guidance across the sector, with limited catalysts for near-term upside.

Founded in 1999 and headquartered in Foster City, California, Qualys, Inc. (NASDAQ:QLYS) is a pioneer in cloud-based cybersecurity and compliance solutions. Its Enterprise TruRisk Platform provides organizations with real-time visibility into IT assets, enabling automated risk assessment and compliance management through a unified, cloud-native architecture. While competition and technological disruption pose challenges, Qualys’ established customer base and scalable platform support a long-term investment case centered on the ongoing need for integrated security and risk management solutions.

9. Science Applications International Corporation (NASDAQ:SAIC)

Forward P/E: 8.81

On April 13, JPMorgan lowered its price target on Science Applications International Corporation (NASDAQ:SAIC) to $110 from $125 while maintaining an Overweight rating, noting that geopolitical tensions and war-related sentiment are likely to drive stock performance as much as underlying fundamentals. The firm suggested that certain aerospace and defense segments may be more insulated from volatility, but broader uncertainty continues to influence valuation multiples across the sector.

On April 2, Citi also reduced its price target on Science Applications International Corporation (NASDAQ:SAIC) to $120 from $133 while maintaining a Buy rating, as part of a broader update across aerospace and defense stocks ahead of Q1 earnings. The adjustments reflect a more cautious near-term outlook, even as long-term demand for defense and national security solutions remains robust.

Science Applications International Corporation (NASDAQ:SAIC) is a leading technology integrator providing engineering, systems integration, and IT services to government and commercial clients. With a strong focus on national security, SAIC delivers end-to-end solutions that embed cybersecurity directly into infrastructure and operations. As governments continue to prioritize defense modernization and digital resilience, SAIC’s capabilities position it for sustained long-term growth, ranking it ninth in the list of most undervalued cybersecurity stocks to invest in.

8. Tenable Holdings, Inc. (NASDAQ:TENB)

Forward P/E: 8.56

On April 13, Barclays analyst Saket Kalia lowered the firm’s price target on Tenable Holdings, Inc. (NASDAQ:TENB) to $20 from $28 while maintaining an Equal Weight rating on the shares, as part of a broader adjustment across the security, design, and vertical software-as-a-service group ahead of Q1 earnings. The revised outlook reflects a more cautious near-term stance on cybersecurity spending trends, even as demand for exposure management solutions remains structurally intact over the long term. While Tenable continues to be recognized for its leadership in vulnerability management, the firm appears to be factoring in macro uncertainty and shifting enterprise spending priorities into its updated valuation framework.

On March 12, Tenable Holdings, Inc. (NASDAQ:TENB) announced the appointment of Dino DiMarino as Chief Revenue Officer, signaling a strategic move to accelerate its next phase of growth. DiMarino brings extensive experience from prior leadership roles at Snyk, Qualys, Mimecast, and AppViewX, where he played a key role in scaling revenue operations and driving enterprise adoption. His addition to the leadership team underscores Tenable’s focus on expanding its go-to-market execution and strengthening its competitive positioning in the increasingly crowded cybersecurity landscape.

Tenable Holdings, Inc. (NASDAQ:TENB) is a cybersecurity company specializing in exposure management and vulnerability assessment, with its flagship Nessus platform widely adopted across enterprises. Founded in 2002 and headquartered in Columbia, Maryland, the company enables organizations to identify, manage, and reduce cyber risk across IT, cloud, and operational technology environments. As cyber threats grow more sophisticated and regulatory pressures increase, Tenable’s comprehensive approach to risk visibility and management supports a long-term investment thesis centered on sustained demand for security infrastructure and recurring revenue growth.

7. OneSpan Inc. (NASDAQ:OSPN)

Forward P/E: 8.28

On March 31, OneSpan Inc. (NASDAQ:OSPN) announced the launch of its OneSpan Sign Integration for Workato, expanding its ability to automate secure eSignature workflows across enterprise systems without requiring custom development. This integration enhances the flexibility of OneSpan’s platform, allowing organizations to streamline digital agreement processes while maintaining strong security and compliance standards. The move reflects the company’s continued focus on expanding its ecosystem and improving the usability of its digital transaction solutions.

On February 27, OneSpan Inc. (NASDAQ:OSPN) reported strong Q4 results, with revenue of $62.9 million exceeding consensus expectations. CEO Victor Limongelli highlighted double-digit growth in subscription revenue and annual recurring revenue, along with an 8% increase in operating income. The company also demonstrated strong cash generation, enabling continued investment in growth initiatives while returning capital to shareholders through share repurchases.

Founded in 1984 and headquartered in Boston, Massachusetts, OneSpan Inc. (NASDAQ:OSPN) is a global cybersecurity company specializing in digital identity, anti-fraud solutions, and electronic signatures. Its solutions are widely used by financial institutions, enterprises, and government organizations to secure digital transactions and agreements. With increasing digitization across industries and rising concerns around fraud and identity security, OneSpan is well-positioned to benefit from long-term demand for secure digital interaction platforms.

6. Gen Digital Inc. (NASDAQ:GEN)

Forward P/E: 6.65

On April 13, RBC Capital analyst Matthew Hedberg lowered the firm’s price target on Gen Digital Inc. (NASDAQ:GEN) to $22 from $29 while maintaining a Sector Perform rating, citing weak sentiment across the software sector. The firm pointed to macroeconomic uncertainty, geopolitical risks, and the disruptive impact of AI technologies as key factors weighing on investor confidence and limiting near-term upside across cybersecurity names.

The same day, Barclays also reduced its price target on Gen Digital Inc. (NASDAQ:GEN) to $26 from $32 while maintaining an Equal Weight rating, as part of a broader reassessment of software and security stocks ahead of Q1 earnings. The firm noted that while underlying demand trends remain stable, valuation adjustments are necessary in light of changing market dynamics and evolving competitive pressures.

Gen Digital Inc. (NASDAQ:GEN) is a global consumer cybersecurity company formed through the merger of NortonLifeLock and Avast. The company offers a comprehensive suite of cyber safety solutions, including identity protection, online privacy, and device security, through well-known brands such as Norton, Avast, LifeLock, and AVG. With a large global user base and a subscription-driven business model, Gen Digital is positioned to capitalize on the growing importance of personal cybersecurity, supporting a steady long-term growth outlook despite short-term market volatility.

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