11 Best Cybersecurity Stocks to Buy According to Wall Street Analysts

1. Telos Corporation (NASDAQ:TLS)

Average Analyst Upside: 51.42%

Number of Hedge Fund Holders: 12

Telos Corporation (NASDAQ:TLS) specializes in advanced technology solutions for security and compliance. Its offerings include identity management, enterprise security, secure mobility, cyber risk management, and compliance services. The company also provides a web-based platform for managing organizational message traffic.

In its recent earnings call, Telos Corporation (NASDAQ:TLS) reported Q3 revenue of $23.8 million, with the Security Solutions segment, primarily driven by the TSA PreCheck program, contributing 77% of total revenue. Despite incurring a notable charge during the quarter, the company improved its adjusted gross margin and posted a smaller-than-expected adjusted EBITDA loss. For Q4, Telos Corporation (NASDAQ:TLS) projects revenue between $24.5 million and $26.5 million, and the company remains optimistic about achieving substantial year-over-year revenue growth by 2025, supported by a strong business pipeline valued at approximately $4.1 billion.

Following these results, BMO Capital Markets raised its price target for Telos Corporation (NASDAQ:TLS) to $4.50 from $3.00, while maintaining a Market Perform rating. The firm highlighted positive developments in Telos’s Transportation Security Administration (TSA) operations, which are expected to expand further. However, analysts emphasized that sustained growth into 2025 will depend on Telos’s ability to effectively execute its large contract awards.

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 timeframe. 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 the cheapest AI stock.

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