In this article, we discuss the 10 best cybersecurity stocks under $10. If you want to skip our detailed analysis of these stocks, go directly to the 5 Best Cybersecurity Stocks Under $10.
The cybersecurity market is one of the fastest-growing segments of the technology sector. Themes such as the Internet of Things (IoT), machine learning, and artificial intelligence are sparking innovation within the sector. According to a report by Mordor Intelligence, a market research firm, the cybersecurity market is expected to grow at a compound annual growth rate of close to 15% between 2021 and 2026, jumping from $156 billion in value to more than $352 billion, with smart cities expected to be the focus of new investments into the area.
The total spending on cybersecurity ventures in the past four years has been somewhere close to $1 trillion. A large part of this has been Fortune 500 companies, with giants like JPMorgan, Bank of America, and Microsoft spending hundreds of millions to protect their services every year. Even energy firms and pipelines operators, the subject of recent hacking attempts, are increasing spending on the sector. Previously, it is estimated that these firms spent only 0.2% of their budgets on cybersecurity.
Cyber insurance products are also becoming popular, although 68% of businesses in the US still do not have coverage against cyber liability or data-breach. However, a survey by The Wall Street Journal claims that 25 of the most populous cities in the US are now looking into possible spending in the area. New methods of identity verification, apart from the traditional username and password, are also making their way into normal usage as security professionals recommend the use of biometric and other forms of digital identification.
Jaya Baloo, the Chief Information Security Officer at Avast, a cybersecurity provider, said during an interview with the World Economic Forum that the biggest challenge for government in relation to web threats was the exclusion of the cost of cyber security in existing information technology infrastructure. Cryptography and quantum computing were also identified as growth areas in the industry by Baloo, who said that the standard practice for any business or government should be spending at least 10% on cybersecurity in the digital economy.
Cybersecurity Ventures, a cyber-focused magazine, has predicted in a report that damage from cyber attacks in 2021 will likely reach $6 trillion and climb to $10 trillion by 2025 if effective safeguards are not adopted. In light of these threats, many governments and businesses are increasing investment in cybersecurity. Some of the top cybersecurity stocks to buy now according to hedge funds include Palantir Technologies Inc. (NYSE:PLTR), NortonLifeLock Inc. (NASDAQ:NLOK), Check Point Software Technologies Ltd. (NASDAQ:CHKP), Cloudflare, Inc. (NYSE:NET), CrowdStrike Holdings, Inc. (NASDAQ:CRWD), and Okta, Inc. (NASDAQ:OKTA), among others discussed in detail below.
Photo by Kaur Kristjan on Unsplash
Our Methodology
These were picked based on the quality of products or services they offer, upcoming growth catalysts, and basic fundamentals. Analyst ratings and hedge fund sentiment were also included as classifiers.
Best Cybersecurity Stocks Under $10
10. Safe-T Group Ltd (NASDAQ:SFET)
Number of Hedge Fund Holders: 1
Share Price as of November 11: $1.17
Safe-T Group Ltd (NASDAQ:SFET) is an Israeli firm that markets intelligent data collection and cybersecurity services. Some of these services include VPN networks, a centralized multi-factor authentication system, and secure file access programs. On October 12, the firm released preliminary revenue guidance for the third quarter, saying it expected revenue to be in excess of $3.2 million, up 125% year-on-year.
On September 23, Alliance Global Partners analyst Brian Kinstlinger had initiated coverage of Safe-T Group Ltd (NASDAQ:SFET) stock with a Buy rating and a price target of $2, noting that new web security solutions of the firm had seamless integration capabilities.
Among the hedge funds being tracked by Insider Monkey, New York-based firm Renaissance Technologies is a leading shareholder in Safe-T Group Ltd (NASDAQ:SFET) with 267,785 shares worth more than $399,000.
Just like Palantir Technologies Inc. (NYSE:PLTR), NortonLifeLock Inc. (NASDAQ:NLOK), Check Point Software Technologies Ltd. (NASDAQ:CHKP), Cloudflare, Inc. (NYSE:NET), CrowdStrike Holdings, Inc. (NASDAQ:CRWD), and Okta, Inc. (NASDAQ:OKTA), Safe-T Group Ltd (NASDAQ:SFET) is one of the stocks on the radar of elite investors.
9. Nxt-ID, Inc. (NASDAQ:NXTD)
Number of Hedge Fund Holders: 1
Share Price as of November 11: $3.85
Nxt-ID, Inc. (NASDAQ:NXTD) is a technology company that provides biometric and behavior-metric identity verification, security, privacy, encryption and data protection services. The shareholders of the firm recently approved two reverse stock split proposals. The share price jumped 44% after the approval was made public. In September, the firm had filed a $12.5 million underwritten public offering.
Nxt-ID, Inc. (NASDAQ:NXTD) had said the proceeds from the offering would be used for new product development, working capital, and liability reduction. The firm is based in Connecticut and was founded in 2011.
Among the hedge funds being tracked by Insider Monkey, New York-based firm Renaissance Technologies is a leading shareholder in Nxt-ID, Inc. (NASDAQ:NXTD) with 36,817 shares worth more than $33,000.
8. BIO-key International, Inc. (NASDAQ:BKYI)
Number of Hedge Fund Holders: 1
Share Price as of November 11: $3.07
BIO-key International, Inc. (NASDAQ:BKYI) is a systems software firm that markets a host of cybersecurity solutions, including enterprise identity management. The company is working with several big businesses, including a Fortune 500 telecom firm. Earlier this year, the telecom firm had extended a contract with BIO-key for services related to the fingerprint biometric authentication platform.
In earnings results for the second quarter, posted on August 16, BIO-key International, Inc. (NASDAQ:BKYI) reported a revenue of close to $1 million, up more than 200% compared to the revenue over the same period last year.
7. CSP Inc. (NASDAQ:CSPI)
Number of Hedge Fund Holders: 1
Share Price as of November 11: $8.73
CSP Inc. (NASDAQ:CSPI) markets integrated IT solutions and security products. Some of the cybersecurity products sold by the firm include ARIA Software-Defined Security, Secure Intelligent Adapters, and digital signals processing applications. The company is headquartered in Massachusetts and was founded in 1968. The company has contracts with big defense firms like Lockheed Martin. It also offers cloud services, a rapidly expanding market across the globe.
CSP Inc. (NASDAQ:CSPI) has a market cap of $37 million and posted over $61 million in revenue last year. In the third quarter results for 2021, posted in August, the firm reported a revenue of more than $13.7 million.
At the end of the second quarter of 2021, 1 hedge fund in the database of Insider Monkey held stakes worth $2.3 million in CSP Inc. (NASDAQ:CSPI), the same as in the previous quarter worth $2 million.
Among the hedge funds being tracked by Insider Monkey, New York-based firm Renaissance Technologies is a leading shareholder in CSP Inc. (NASDAQ:CSPI) with 224,288 shares worth more than $2.3 million.
6. SuperCom Ltd. (NASDAQ:SPCB)
Number of Hedge Fund Holders: 2
Share Price as of November 11: $0.85
SuperCom Ltd. (NASDAQ:SPCB) is a digital identity and cybersecurity provider. Some of the services it offers include e-passports, biometric visas, automated fingerprint identification systems, digitized driver’s licenses, and electronic voter registration, among others. The company was recently awarded a contract in California for the automation of Juvenile Programing and Rehabilitative Services in the state.
SuperCom Ltd. (NASDAQ:SPCB) also has an impressive international reach. In June, the firm won a $3.6 million project in Finland for the deployment of a PureSecurity Electronic Monitoring Suite. The project is of a national level and funded by the government.
At the end of the second quarter of 2021, 2 hedge funds in the database of Insider Monkey held stakes worth $347,000 in SuperCom Ltd. (NASDAQ:SPCB).
Among the hedge funds being tracked by Insider Monkey, New York-based firm Renaissance Technologies is a leading shareholder in SuperCom Ltd. (NASDAQ:SPCB) with 245,000 shares worth more than $331,000.
In addition to Palantir Technologies Inc. (NYSE:PLTR), NortonLifeLock Inc. (NASDAQ:NLOK), Check Point Software Technologies Ltd. (NASDAQ:CHKP), Cloudflare, Inc. (NYSE:NET), CrowdStrike Holdings, Inc. (NASDAQ:CRWD), and Okta, Inc. (NASDAQ:OKTA), SuperCom Ltd. (NASDAQ:SPCB) is one of the stocks that hedge funds are buying.
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Disclosure. None. 10 Best Cybersecurity Stocks Under $10 is originally published on Insider Monkey.
