We recently published a list of 10 Best Cybersecurity Stocks to Invest in Under $20. In this article, we are going to take a look at where A10 Networks, Inc. (NYSE:ATEN) stands against other best cybersecurity stocks to invest in under $20.
The cybersecurity sector is at a tipping point, driven by growing cyber threats, breakthrough technologies such as AI and IoT, and a renewed focus on national security and digital infrastructure. Despite a well-documented talent scarcity and evolving geopolitical concerns, the industry continues to grow rapidly, creating an ideal environment for innovation and investment.
According to Fortune Business Insights, the worldwide cybersecurity industry was valued at $172.24 billion in 2023 and is expected to reach $562.72 billion by 2032, expanding at a CAGR of 14.3%. North America, notably the United States, dominates this environment, driven by the growth of e-commerce platforms, increased digital adoption in industries such as BFSI and healthcare, and greater consumer awareness. Cloud computing, AI, machine learning, and IoT technologies are now at the forefront of current cybersecurity solutions, allowing enterprises to identify and prevent digital breaches in real time.
However, as technology advances, so do the hazards. McKinsey’s November 2024 report underlines the critical need to make AI systems more secure, advising cybersecurity providers to focus on the dual problem of protecting both their own AI models and those used by their clients. Generative AI and third-party integrations provide new attack surfaces, necessitating the use of smarter, more adaptive protection technologies.
The need is further heightened by significant policy developments. According to WIRED, former President Trump slapped punitive tariffs on technology imports, sending shockwaves across the semiconductor and e-commerce sectors. While some tech businesses may profit from increased demand for logistics and supply chain management technologies, others, such as major tech giants, saw their stock prices fall sharply due to concerns about inflation and disrupted trade routes. Tariffs on goods from China and other significant nations may boost consumer prices and limit the supply of critical cybersecurity components, particularly for cloud and data center operators.
In the meantime, firms’ stakes are still rising. Nearly half of American businesses have experienced significant revenue losses as a result of data breaches, according to Arcserve and IBM. In 2024, the average cost of a breach was close to $4.9 million; when events took more than 200 days to identify, the cost increased to $5.5 million. The threat surface is growing due to generative AI, and just 40% of SaaS services are actively monitored for security, further taxing already overworked security teams.
According to Forbes, there is a paradox in the workforce, despite a 4.8 million cybersecurity expert deficit worldwide, thousands of competent IT workers are still underutilized as a result of strict recruiting practices and a lack of investment in local talent development. While degrees and certifications are still important, practical experience gained through laboratories, bug bounty programs, or internships has emerged as the key differentiator.
When combined, these patterns point to a fundamental transformation of the cybersecurity sector as well as an increase in demand for cybersecurity services. Cybersecurity firms that can innovate at scale while navigating governmental changes and global uncertainties are being keenly watched by investors, particularly those keeping an eye on high-growth tech industries.
Methodology
In order to find the Best Cybersecurity Stocks to invest in under $20, we started by searching for companies working in the cybersecurity sector using the Finviz stock screener, applying a price filter to include just those trading below $20 per share. Following the compilation of the list, we used Insider Monkey’s hedge fund holdings database to analyze hedge fund sentiment for each stock. Next, we arranged the stocks according to the number of hedge funds that owned each one in ascending order, as per Insider Monkey’s database of Q4 2024. The final list consists of cybersecurity stocks under $20 that are currently overlooked by institutional investors, perhaps representing discounted chances in a quickly changing field.
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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A computer network engineer operating a control panel with a view of a server room in the background.
A10 Networks, Inc. (NYSE:ATEN)
Share Price: $16.40
Number of Hedge Fund Holders: 30
A10 Networks, Inc. (NYSE:ATEN) is a new cybersecurity and infrastructure solutions provider that serves businesses, governments, and telecom carriers globally. A10 Networks, known for its extremely efficient and secure technologies, has been expanding into the rapidly rising AI data center market. With excellent financials, outstanding innovation, and recent strategic acquisitions, the company is establishing itself as a significant competitor in cybersecurity and AI-powered networking solutions.
In 2024, A10 Networks, Inc. (NYSE:ATEN) witnessed enterprise revenues grow 6% and service provider revenues rise 2.5%, reversing previous year decreases. Security-led revenue, a significant strategic priority, increased 9% year-over-year to 63% of overall revenue, approaching the company’s long-term aim of 65%. A10 Networks, Inc. (NYSE:ATEN) also returned capital to shareholders through dividends and share repurchases, demonstrating its strong cash creation from operations of $90.5 million.
A10 Networks, Inc. (NYSE:ATEN) increased its cybersecurity portfolio on February 12, 2025, with the acquisition of ThreatX Protect, a premier web application and API protection (WAAP) product. The acquisition enhances A10’s Defend platform with powerful AI-driven behavioral threat identification and bot control capabilities. With the proliferation of AI applications, ThreatX Protect enhances A10 Networks’ hybrid cybersecurity capabilities by protecting apps and APIs across public, private, and on-premises settings.
A10 Networks, Inc. (NYSE:ATEN), with its underrated positioning, strong focus on cybersecurity innovation, and share price under $20, stands out as one of the best cybersecurity stocks to keep an eye on.
Overall, ATEN ranks 2nd on our list of best cybersecurity stocks to invest in under $20. While we acknowledge the potential of ATEN as an investment, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than ATEN but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
