5 Best Cybersecurity Stocks to Buy According to Analysts

2. Zscaler, Inc. (NASDAQ:ZS)

Number of Hedge Fund Holders: 48

Average Analyst Price Target: $261.03

Upside Potential: 35.5%

As of March 1, Baird analysts hold a $265 price target and an Outperform rating on Zscaler, Inc. (NASDAQ:ZS).

We saw 48 hedge funds long Zscaler, Inc. (NASDAQ:ZS) in the fourth quarter, with a total stake value of $1.6 billion.

Zscaler, Inc. (NASDAQ:ZS) is a cloud security company based in San Jose, California. The company offers Posture Control solutions comprising Cloud Security Posture Management, among more.

Artisan Partners mentioned Zscaler, Inc. (NASDAQ:ZS) in its third-quarter 2023 investor letter:

“Notable trims in the quarter included Zscaler, Inc. (NASDAQ:ZS), BioNTech and Ingersoll Rand. Zscaler provides cloud-based Internet security solutions. In the quarter, it announced solid financial results including 43% revenue growth and 38% growth in billings, which were both ahead of expectations. We believe the dual trends of rising security vulnerability and increased enterprise digitization will lead to sustained demand, even in a recession. Cybersecurity remains a top concern for businesses and governments as cyberattacks can have devastating financial and reputational consequences. Meanwhile, managing the security needs of legacy on-premise applications, a growing number of cloud-based applications (e.g., Office 365 and Salesforce) and more remote workers than before the pandemic make operating IT infrastructures increasingly complex. The stock has been a top performer this year, and we decided to trim the position based on valuation considerations.”