In this article, we will look at the 5 Best Cybersecurity Stocks to Buy According to Short Sellers. Please visit the 10 Best Cybersecurity Stocks to Buy According to Short Sellers if you’d like to see an extended list and methodology behind it.
5. Elastic NV (NYSE:ESTC)
Short float:5.93%
Number of Hedge Fund Holders:55
Elastic (NYSE:ESTC) is one of the 10 Best Cybersecurity Stocks to Buy According to Short Sellers. On May 21, Oppenheimer reiterated its Buy rating on Elastic and set a price target of $85.00, according to a report by TipRanks.
On May 19, Guggenheim reduced its price target on Elastic to $106 from $116 while maintaining a Buy rating on the stock, according to a report by TheFly. The analyst said the price target adjustment reflects potential guidance risk and longer-term uncertainty. However, the analyst said it expects the company to have delivered Cloud revenue acceleration and stable total revenue growth in its fiscal Q4.
Earlier on May 11, Elastic launched the Jina v5 Omni Family, a new family of multimodal embedding models that are able to represent text, images, video, and audio as vectors. These models allow developers to perform search, classification, clustering, and deduplication across different media types.
Elastic (NYSE:ESTC) provides a platform that allows companies to securely harness search-powered AI to find the answers they need in real-time using all their data, at scale. It offers solutions for search, observability, and security.
4. Check Point Software Technologies Ltd. (NASDAQ:CHKP)
Short float:5.25%
Number of Hedge Fund Holders: 39
Check Point Software Technologies Ltd. (NASDAQ:CHKP) is one of the 10 Best Cybersecurity Stocks to Buy According to Short Sellers. On May 19, the company launched its Agentic Network Security Orchestration Platform, an autonomous agent architecture that executes network security operations without constant human intervention.
Check Point Chief Technology Officer Jonathan Zanger emphasized that the platform allows security teams to operate entirely at the level of business intent. He added:
“With Agentic Network Security Orchestration, teams define what needs to be protected and what the policy should achieve. Everything below that, the rule creation, the policy tightening, the virtual patching, is handed to AI agents to execute autonomously, within predefined guardrails and under continuous human oversight. We are turning projects that used to take months into days of auditable action.”
Based on 41 analyst ratings compiled by CNN, 63% assigned a Hold rating on Check Point, while 37% marked it Buy. The stock has an average price target of $135, a 1.03% upside from the current price of $133.63.
Earlier on May 4, BofA Securities adjusted its rating on Check Point to Neutral from Buy and reduced its price target to $120 from $142 following a weak first-quarter financial performance, according to a report by Investing.com.
Check Point Software Technologies Ltd. (NASDAQ:CHKP) is a cybersecurity company that provides solutions for network, cloud, and workspace security.
3. Okta, Inc. (NASDAQ:OKTA)
Short float:5.07%
Number of Hedge Fund Holders:53
Okta, Inc. (NASDAQ:OKTA) is one of the 10 Best Cybersecurity Stocks to Buy According to Short Sellers. On May 26, TheFly reported that Arete analyst Ellie Kearney upgraded Okta’s rating to Buy from Sell, setting a price target of $127 price target. The analyst said it expects a “modest beat-and-raise” quarter for Okta, driven by agentic AI tailwinds.
On May 21, BTIG increased its price target on Okta to $105 from $90 while maintaining a Buy rating on the stock, according to a report by TheFly. The adjustment was part of the company’s Q1 results preview for Security and Infrastructure Software firms. The analyst noted that demand across security remains intact despite uncertainty around budget allocations related to AI initiatives.
Out of 47 analyst ratings compiled by CNN, 70 percent assigned a Buy rating on Okta, while 28% marked it Hold. The stock currently has a median price target of $100, an 8.41% upside from the current price of $92.24.
Okta, Inc. (NASDAQ:OKTA) provides an identity management platform. Its offerings secure AI, machine, and human identity. The company’s customer and workforce solutions empower businesses and developers to protect their AI agents, users, employees, and partners while driving security, efficiencies, and innovation.
2. Palo Alto Networks Inc. (NASDAQ:PANW)
Short float:3.12%
Number of Hedge Fund Holders:86
Palo Alto Networks (NASDAQ:PANW) is one of the 10 Best Cybersecurity Stocks to Buy According to Short Sellers. On May 21, Wells Fargo analyst reiterated a Buy rating on Palo Alto Networks with a price target of $285, according to a report by TipRanks.
On May 20, TheFly reported that Cantor Fitzgerald increased its price target on Palo Alto Networks to $285 from $220 while maintaining an Overweight rating on the stock ahead of the company’s earnings report in June. The analyst said it expects solid results for the third fiscal quarter, driven by continued execution on platformization, large deal momentum, and broad-based strength.
Earlier on May 12, Palo Alto Networks launched Idira, a next-generation identity security platform to discover, control, and govern all identities. The company highlighted that the new offering expands the capabilities for existing CyberArk customers by delivering modern privilege access management (PAM) with agentic functionality.
Palo Alto Networks (NASDAQ:PANW) is a global AI cybersecurity firm offering a comprehensive portfolio of cybersecurity solutions and platforms across network, cloud, security operations, AI, and identity.
1. CrowdStrike Holdings, Inc. (NASDAQ:CRWD)
Short float:3.04%
Number of Hedge Fund Holders:67
CrowdStrike Holdings, Inc. (NASDAQ:CRWD) is one of the 10 Best Cybersecurity Stocks to Buy According to Short Sellers. On May 21, the company announced a new integration with Claude’s Compliance API aimed at delivering visibility and monitoring for Claude Activity. In a statement, the company said the new integration brings Claude Enterprise and Claude Platform activity into its Falcon platform to provide centralized visibility, detection, response, and governance for enterprise AI usage.
On May 20, CrowdStrike announced a strategic partnership with German firm SVA System Vertrieb Alexander GmbH aimed at bringing the AI-native CrowdStrike Falcon platform to public sector, enterprise, and mid-market organizations across Germany. Under the agreement, SVA will offer the full CrowdStrike Falcon platform as a foundational component of its cybersecurity strategy. The standardization on CrowdStrike will help SVA customers eliminate tool sprawl, reduce complexity, and cost.
CrowdStrike (NASDAQ:CRWD) is a global cybersecurity leader offering an advanced cloud-native platform for protecting critical areas of enterprise risk – endpoints and cloud workloads, identity, and data.
While we acknowledge the potential of CRWD to grow, 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 CRWD and that has 100x upside potential, check out our report about the cheapest AI stock.
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