12 Most Undervalued Cybersecurity Stocks to Buy According to Hedge Funds

8) NetScout Systems, Inc. (NASDAQ:NTCT)

Forward P/E as of November 20: ~10.8x

Number of Hedge Fund Holders: 21

NetScout Systems, Inc. (NASDAQ:NTCT) is a prominent comprehensive operational intelligence solutions provider. The company focuses on cybersecurity, network management, and service assurance for enterprises and service providers.

NetScout Systems, Inc. (NASDAQ:NTCT) is emphasizing its security offerings. This move aligns with the increasing demand for cybersecurity solutions throughout industries. By strengthening its position in the security market, the company targets tapping into new revenue streams and boosting its value proposition to customers.

NetScout Systems, Inc. (NASDAQ:NTCT) announced updates to its advanced, scalable deep packet inspection-based Omnis Cyber Intelligence Network Detection and Response (NDR) platform. New MITRE ATT&CK behavioral analytics allow earlier detection of advanced threats such as ransomware, suspicious traffic, or unauthorized access attempts. It also supports improving remediation to help meet industry and country compliance requirements.

The organizations are seeking effective and efficient methods to comply with industry or government regulations, like the EU’s Digital Operational Resilience Act (DORA), which will be effective on January 17, 2025. Therefore, companies are learning that the network continues to play a strategic role in success.  Omnis Cyber Intelligence’s continuous, scalable deep packet inspection-based network monitoring, tighter alignment with ATT&CK, expanded behavioral analytics, and new open architecture for ecosystem integration support the companies in meeting these important compliance requirements.

As per Wall Street, by leveraging the existing customer relationships and technology expertise, NetScout Systems, Inc. (NASDAQ:NTCT) can place itself as a trusted provider of integrated service assurance and security solutions. This should result in increased cross-selling opportunities, higher-value contracts, and improved profit margins.

Insider Monkey’s Q3 2024 database revealed that NetScout Systems, Inc. (NASDAQ:NTCT) was in the portfolio of 21 hedge funds.