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Is Telos Corporation (TLS) the Best Cybersecurity Stock to Invest in Under $20?

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 Telos Corporation (NASDAQ:TLS) 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 senior IT executive leading a highly skilled team of professionals in a modern tech office.

Telos Corporation (NASDAQ:TLS)

Share Price: $2.680

Number of Hedge Fund Holders: 8

Telos Corporation (NASDAQ:TLS) provides cloud, enterprise, and cybersecurity solutions to both commercial and governmental customers globally. Security Solutions and Secure Networks are the company’s two primary business categories. Its flagship solutions are IDTrust360 for trusted identity services and Xacta for cyber risk management.

Telos Corporation (NASDAQ:TLS) reported revenue of $26.4 million for the fourth quarter ended December 31, 2024. This revenue was close to the top of its guidance range and represented an 11% sequential growth. Security Solutions accounted for 83% of total sales with a 20% sequential growth in revenue. The cash gross margin hit a record 47%, its highest level since the company’s 2020 IPO, while the GAAP gross margin increased by almost 600 basis points year-over-year to 40.3%. The company also predicted positive cash flow for the first quarter of 2025 and drastically cut its adjusted EBITDA deficit to just $200,000.

A $5.8 million contract award to support the Department of Defense’s Microwave Line of Sight (MLoS) program was announced by Telos Corporation (NASDAQ:TLS) on April 10, 2025. This enhances Telos’ standing in providing warfighters with a secure and adaptable communications infrastructure. Additionally, Telos Corporation (NASDAQ:TLS) gained access to a government market opportunity valued at about $35 billion on January 29, 2025, when it was awarded prime contractor status for the U.S. Navy’s SeaPort Next Generation (SeaPort NxG) contract.

Telos Corporation (NASDAQ:TLS) stands out as one of the best cybersecurity companies under $20 heading into 2025, thanks to a rising backlog of federal contracts, improving margins, and the ramping up of significant programs like TSA PreCheck and DMDC.

Overall, TLS ranks 10th on our list of best cybersecurity stocks to invest in under $20. While we acknowledge the potential of TLS, 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 TLS but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

Disclosure: None. This article is originally published at Insider Monkey.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

A few years from now, you’ll wish you’d owned this stock.

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AI, Tariffs, Nuclear Power: One Undervalued Stock Connects ALL the Dots (Before It Explodes!)

Artificial intelligence is the greatest investment opportunity of our lifetime. The time to invest in groundbreaking AI is now, and this stock is a steal!

AI is eating the world—and the machines behind it are ravenous.

Each ChatGPT query, each model update, each robotic breakthrough consumes massive amounts of energy. In fact, AI is already pushing global power grids to the brink.

Wall Street is pouring hundreds of billions into artificial intelligence—training smarter chatbots, automating industries, and building the digital future. But there’s one urgent question few are asking:

Where will all of that energy come from?

AI is the most electricity-hungry technology ever invented. Each data center powering large language models like ChatGPT consumes as much energy as a small city. And it’s about to get worse.

Even Sam Altman, the founder of OpenAI, issued a stark warning:

“The future of AI depends on an energy breakthrough.”

Elon Musk was even more blunt:

“AI will run out of electricity by next year.”

As the world chases faster, smarter machines, a hidden crisis is emerging behind the scenes. Power grids are strained. Electricity prices are rising. Utilities are scrambling to expand capacity.

And that’s where the real opportunity lies…

One little-known company—almost entirely overlooked by most AI investors—could be the ultimate backdoor play. It’s not a chipmaker. It’s not a cloud platform. But it might be the most important AI stock in the US owns critical energy infrastructure assets positioned to feed the coming AI energy spike.

As demand from AI data centers explodes, this company is gearing up to profit from the most valuable commodity in the digital age: electricity.

The “Toll Booth” Operator of the AI Energy Boom

  • It owns critical nuclear energy infrastructure assets, positioning it at the heart of America’s next-generation power strategy.
  • It’s one of the only global companies capable of executing large-scale, complex EPC (engineering, procurement, and construction) projects across oil, gas, renewable fuels, and industrial infrastructure.
  • It plays a pivotal role in U.S. LNG exportation—a sector about to explode under President Trump’s renewed “America First” energy doctrine.

Trump has made it clear: Europe and U.S. allies must buy American LNG.

And our company sits in the toll booth—collecting fees on every drop exported.

But that’s not all…

As Trump’s proposed tariffs push American manufacturers to bring their operations back home, this company will be first in line to rebuild, retrofit, and reengineer those facilities.

AI. Energy. Tariffs. Onshoring. This One Company Ties It All Together.

While the world is distracted by flashy AI tickers, a few smart investors are quietly scooping up shares of the one company powering it all from behind the scenes.

AI needs energy. Energy needs infrastructure.

And infrastructure needs a builder with experience, scale, and execution.

This company has its finger in every pie—and Wall Street is just starting to notice.

Wall Street is noticing this company also because it is quietly riding all of these tailwinds—without the sky-high valuation.

While most energy and utility firms are buried under mountains of debt and coughing up hefty interest payments just to appease bondholders…

This company is completely debt-free.

In fact, it’s sitting on a war chest of cash—equal to nearly one-third of its entire market cap.

It also owns a huge equity stake in another red-hot AI play, giving investors indirect exposure to multiple AI growth engines without paying a premium.

And here’s what the smart money has started whispering…

The Hedge Fund Secret That’s Starting to Leak Out

This stock is so off-the-radar, so absurdly undervalued, that some of the most secretive hedge fund managers in the world have begun pitching it at closed-door investment summits.

They’re sharing it quietly, away from the cameras, to rooms full of ultra-wealthy clients.

Why? Because excluding cash and investments, this company is trading at less than 7 times earnings.

And that’s for a business tied to:

  • The AI infrastructure supercycle
  • The onshoring boom driven by Trump-era tariffs
  • A surge in U.S. LNG exports
  • And a unique footprint in nuclear energy—the future of clean, reliable power

You simply won’t find another AI and energy stock this cheap… with this much upside.

This isn’t a hype stock. It’s not riding on hope.

It’s delivering real cash flows, owns critical infrastructure, and holds stakes in other major growth stories.

This is your chance to get in before the rockets take off!

Disruption is the New Name of the Game: Let’s face it, complacency breeds stagnation.

AI is the ultimate disruptor, and it’s shaking the foundations of traditional industries.

The companies that embrace AI will thrive, while the dinosaurs clinging to outdated methods will be left in the dust.

As an investor, you want to be on the side of the winners, and AI is the winning ticket.

The Talent Pool is Overflowing: The world’s brightest minds are flocking to AI.

From computer scientists to mathematicians, the next generation of innovators is pouring its energy into this field.

This influx of talent guarantees a constant stream of groundbreaking ideas and rapid advancements.

By investing in AI, you’re essentially backing the future.

The future is powered by artificial intelligence, and the time to invest is NOW.

Don’t be a spectator in this technological revolution.

Dive into the AI gold rush and watch your portfolio soar alongside the brightest minds of our generation.

This isn’t just about making money – it’s about being part of the future.

So, buckle up and get ready for the ride of your investment life!

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Space is Limited! Only 1000 spots are available for this exclusive offer. Don’t let this chance slip away – subscribe to our Premium Readership Newsletter today and unlock the potential for a life-changing investment.

Here’s what to do next:

1. Head over to our website and subscribe to our Premium Readership Newsletter for just $9.99.

2. Enjoy a month of ad-free browsing, exclusive access to our in-depth report on the Trump tariff and nuclear energy company as well as the revolutionary AI-robotics company, and the upcoming issues of our Premium Readership Newsletter.

3. Sit back, relax, and know that you’re backed by our ironclad 30-day money-back guarantee.

Don’t miss out on this incredible opportunity! Subscribe now and take control of your AI investment future!


No worries about auto-renewals! Our 30-Day Money-Back Guarantee applies whether you’re joining us for the first time or renewing your subscription a month later!