15 Software Stocks With the Highest Upside Potential

5. Netskope, Inc. (NASDAQ:NTSK)

Potential Upside: 69.28%

Number of Hedge Fund Holders: 44

On January 5, Piper Sandler provided its 2026 outlook for Security and Infrastructure Software stocks. The stock was among the financial services firm’s top stock picks for 2026. Supported by a generally stable demand environment for software, analysts expect the theme of ‘acceleration scarcity’ to continue into 2026. This outlook is tempered by ongoing uncertainty surrounding GenAI-related disruption. Heading into 2026, analysts said they prefer stocks with the potential to accelerate growth or maintain attractive growth rates, relative to expectations for slowing momentum.

Analyst Rob Owens and his team explained that the company is a modern SASE platform that leverages its private network and robust, granular controls, along with a deep understanding of context, to drive improved security outcomes. This combination offers the firm a credible right-to-win, enabling it to compete effectively alongside larger platforms in the market.

Analysts led by Rob Owens noted:

“We especially see NTSK as a strong fit for enterprises that need to secure agentic implementations across hybrid environments with more complex data security requirements.”

RBC Capital analyst Matthew Hedberg previously reaffirmed an Outperform rating on the stock and cut the price target from $27 to $23 on January 5. The adjusted price target implies a further 43.75% upside from here.

Netskope, Inc. (NASDAQ:NTSK) operates as a provider of networking, security, and analytics solutions to the largest enterprises and mid-sized companies globally. The company develops the Netskope One platform, which is a cloud-native platform for accelerating and securing the digital interactions of enterprises.