5 Best Cybersecurity Stocks to Buy According to Analysts

In this article, we will be taking a look at the 5 best cybersecurity stocks to buy according to analysts. To skip our detailed analysis of the cybersecurity sector, you can go directly to see the 12 Best Cybersecurity Stocks to Buy According to Analysts.

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

Number of Hedge Fund Holders: 22

Average Analyst Price Target: $59.4

Upside Potential: 26.7%

Tenable Holdings, Inc. (NASDAQ:TENB) is a cybersecurity company that provides cyber-exposure solutions. It is based in Columbia, Maryland.

On February 8, Susquehanna analysts maintained a Positive rating and a $60 price target on Tenable Holdings, Inc. (NASDAQ:TENB).

In total, 22 hedge funds were long Tenable Holdings, Inc. (NASDAQ:TENB) in the fourth quarter, with a total stake value of $323.9 million.

This is what Aristotle Atlantic Partners, LLC said about Tenable Holdings, Inc. (NASDAQ:TENB) in its fourth-quarter 2023 investor letter:

“We sold Tenable Holdings, Inc. (NASDAQ:TENB), as we believe the company could see increasing pressure from larger cybersecurity providers with more extensive product platforms and more competitive pricing dynamics.”

4. Gen Digital Inc. (NASDAQ:GEN)

Number of Hedge Fund Holders: 36

Average Analyst Price Target: $27.3

Upside Potential: 27.9%

An Overweight rating and $28 price target were maintained on Gen Digital Inc. (NASDAQ:GEN) by Morgan Stanley analysts on February 12.

Based in Tempe, Arizona, Gen Digital Inc. (NASDAQ:GEN) is a systems software company. It provides cyber-safety solutions worldwide.

Gen Digital Inc. (NASDAQ:GEN) was spotted in the 13F holdings of 36 hedge funds in the fourth quarter, with a total stake value of $1.3 billion.

3. SentinelOne, Inc. (NYSE:S)

Number of Hedge Fund Holders: 33

Average Analyst Price Target: $30.1

Upside Potential: 30.2%

SentinelOne, Inc. (NYSE:S) is a cybersecurity provider in the US and internationally. It offers AI-powered autonomous threat prevention, detection, and response capabilities.

A total of 33 hedge funds were long SentinelOne, Inc. (NYSE:S) in the fourth quarter, with a total stake value of $908.7 million.

Morgan Stanley analysts maintained an Overweight rating and a $29 price target on SentinelOne, Inc. (NYSE:S) on March 14.

Baron Funds said the following about SentinelOne, Inc. (NYSE:S) in its fourth-quarter 2023 investor letter:

“SentinelOne, Inc. (NYSE:S) is a cybersecurity software company that specializes in endpoint protection, cloud security, and security data analytics. Shares rose on outstanding quarterly financial results and strong guidance. SentinelOne is one of the fastest growing public cybersecurity companies, with revenue expected to grow more than 46% this fiscal year. Growth has been driven by a combination of: 1) market share capture from legacy endpoint vendors that struggle to compete against SentinelOne’s AI-enabled platform; 2) an ongoing shift of Information Technology (IT) infrastructure to the cloud driving demand for cloud application protection (growing triple digits); and 3) cybersecurity vendor consolidation favoring end-to-end platforms with comprehensive security portfolios over single-point solutions. The company is also leveraging its single data store and AI capabilities to cross-sell more products into its existing customer base and increase average sale prices. Between larger deal sizes and improving operating efficiencies, we believe the company can continue to expand margins at a significant rate and begin generating positive free cash flow in the next fiscal year.”

2. Zscaler, Inc. (NASDAQ:ZS)

Number of Hedge Fund Holders: 48

Average Analyst Price Target: $261.03

Upside Potential: 35.5%

As of March 1, Baird analysts hold a $265 price target and an Outperform rating on Zscaler, Inc. (NASDAQ:ZS).

We saw 48 hedge funds long Zscaler, Inc. (NASDAQ:ZS) in the fourth quarter, with a total stake value of $1.6 billion.

Zscaler, Inc. (NASDAQ:ZS) is a cloud security company based in San Jose, California. The company offers Posture Control solutions comprising Cloud Security Posture Management, among more.

Artisan Partners mentioned Zscaler, Inc. (NASDAQ:ZS) in its third-quarter 2023 investor letter:

“Notable trims in the quarter included Zscaler, Inc. (NASDAQ:ZS), BioNTech and Ingersoll Rand. Zscaler provides cloud-based Internet security solutions. In the quarter, it announced solid financial results including 43% revenue growth and 38% growth in billings, which were both ahead of expectations. We believe the dual trends of rising security vulnerability and increased enterprise digitization will lead to sustained demand, even in a recession. Cybersecurity remains a top concern for businesses and governments as cyberattacks can have devastating financial and reputational consequences. Meanwhile, managing the security needs of legacy on-premise applications, a growing number of cloud-based applications (e.g., Office 365 and Salesforce) and more remote workers than before the pandemic make operating IT infrastructures increasingly complex. The stock has been a top performer this year, and we decided to trim the position based on valuation considerations.”

1. Telos Corporation (NASDAQ:TLS)

Number of Hedge Fund Holders: 20

Average Analyst Price Target: $6

Upside Potential: 43.2%

Telos Corporation (NASDAQ:TLS) provides cyber, cloud, and enterprise security solutions. It is based in Ashburn, Virginia.

Analysts at B. Riley Securities maintained a Buy rating and $5.5 price target on Telos Corporation (NASDAQ:TLS) on March 18.

There were 20 hedge funds long Telos Corporation (NASDAQ:TLS) in the fourth quarter, with a total stake value of $40.9 million.

See also 10 Best Cybersecurity ETFs and 10 Most Undervalued Cybersecurity Stocks To Buy.