5 Best Cybersecurity Stocks to Buy and Hold for the Long Term

3. Varonis Systems, Inc. (NASDAQ:VRNS)

EPS Growth for the Next 5 Years: 56.13% 

On June 24,  Stephens upgraded Varonis Systems, Inc. (NASDAQ:VRNS) to Overweight from Equal Weight and raised its price target to $45 from $33. While the firm noted that recent media reports regarding potential private equity interest further reinforce its view that the shares remain undervalued, the upgrade is primarily driven by the company’s underlying fundamentals. Stephens highlighted strong and growing demand for data security, fueled by accelerating AI adoption, increasing confidence in the durability of SaaS annual recurring revenue growth, expanding platform capabilities, improving sales execution, upside potential to fiscal 2027 guidance, and the opportunity for further valuation multiple expansion.

On May 21, Varonis Systems, Inc. (NASDAQ:VRNS) announced an integration with the Claude Compliance API, extending Claude Enterprise and Claude Platform activity into the Varonis Atlas AI Security Platform. This integration enables organizations using Claude for enterprise knowledge work, application development, and AI agent deployment to gain enhanced visibility into AI activity. By leveraging the Compliance API, Varonis allows security and governance teams to monitor AI usage, investigate misuse across complete user sessions, and evaluate AI-related risks with deeper data context, helping enterprises adopt AI technologies with greater confidence.

Founded in 2005 and headquartered in Miami, Florida, Varonis Systems, Inc. (NASDAQ:VRNS) protects enterprise data from breaches, ransomware, and insider threats. It acts as a cybersecurity stock by offering a data-centric platform that automates the discovery, classification, and protection of sensitive information across cloud and on-premises environments.

Varonis’ continued platform innovation and deeper integration with leading enterprise AI ecosystems, combined with improving SaaS execution, expanding recurring revenue potential, and growing analyst confidence, make it one of the best cybersecurity stocks to buy and hold for the long term.