5 Most Undervalued Cybersecurity Stocks To Buy According To Analysts

In this piece, we will take a look at the five most undervalued cybersecurity stocks to buy according to analysts. If you want to learn about why the cybersecurity industry is one of the hottest these days, then you can check out 11 Most Undervalued Cybersecurity Stocks To Buy According To Analysts.

5. Tenable Holdings, Inc. (NASDAQ:TENB)

Number of Q4 2023 Hedge Fund Shareholders: 22

Average Analyst Share Price Target Upside: 28%

Average Analyst Share Price Target: $60

Tenable Holdings, Inc. (NASDAQ:TENB) is a software company whose products allow customers to continuously monitor their systems in real time for any potential threats. March 2024 is shaping up to be a crucial month for the firm, as it is seeking to leverage generative artificial intelligence to speed up its systems when it comes to detecting and responding to cybersecurity events.

As Q4 2023 ended, 22 out of the 933 hedge funds profiled by Insider Monkey had invested in Tenable Holdings, Inc. (NASDAQ:TENB). Robert G. Moses’s RGM Capital was the firm’s biggest shareholder since it owned $176 million worth of shares.

4. BlackBerry Limited (NYSE:BB)

Number of Q4 2023 Hedge Fund Shareholders: 15

Average Analyst Share Price Target Upside: 30%

Average Analyst Share Price Target: $4

BlackBerry Limited (NYSE:BB) is best known for being a phone company, but over the years it has diversified its presence in the cybersecurity industry. The firm offers an AI powered security platform for round the clock network monitoring. March 2024 saw BlackBerry Limited (NYSE:BB) stress the importance of remaining vigilant when it comes to cybersecurity when it shared that the global finance industry battled a whopping one million attacks in just three months.

By the end of 2023’s final quarter, 15 out of the 933 hedge funds tracked by Insider Monkey’s research had held a stake in the company. BlackBerry Limited (NYSE:BB)’s largest investor in our database is Prem Watsa’s Fairfax Financial Holdings as it holds a $165 million stake.

3. Zscaler, Inc. (NASDAQ:ZS)

Number of Q4 2023 Hedge Fund Shareholders: 15

Average Analyst Share Price Target Upside: 31%

Average Analyst Share Price Target: $264

Zscaler, Inc. (NASDAQ:ZS) is a sizeable and diversified cybersecurity company that offers tools to secure private networks, manage platform access, and ensure regulatory compliance. Its shares are rated Strong Buy on average, in a nice addition to the 31% average share price target upside.

Insider Monkey’s fourth quarter of 2023 survey covering 933 hedge funds revealed 15 Zscaler, Inc. (NASDAQ:ZS) shareholders. D. E. Shaw’s D E Shaw owned the biggest stake which was worth $268 million.

2. Telos Corporation (NASDAQ:TLS)

Number of Q4 2023 Hedge Fund Shareholders: 20

Average Analyst Share Price Target Upside: 34%

Average Analyst Share Price Target: $4

Telos Corporation (NASDAQ:TLS) provides several different cybersecurity platforms and services, such as those that allow for risk management and regulatory compliance. It is one of the few companies that specialize in providing cybersecurity to the defense industry, and March 2024 is a crucial month as Telos Corporation (NASDAQ:TLS) is gearing up for its crucial fourth quarter and full year 2023 earnings report.

After digging through 933 hedge fund portfolios for last year’s December quarter, Insider Monkey found that 20 had invested in the firm. Telos Corporation (NASDAQ:TLS)’s largest hedge fund investor is Mike Masters’s Masters Capital Management as it owns $11.3 million worth of shares.

1. Arqit Quantum Inc. (NASDAQ:ARQQ)

Number of Q4 2023 Hedge Fund Shareholders: 5

Average Analyst Share Price Target Upside: 261%

Average Analyst Share Price Target: $3

Arqit Quantum Inc. (NASDAQ:ARQQ) is one of the rare cybersecurity companies in the world whose cloud based platform also claims to offer protection against quantum computers. The firm scored a win in March 2024 when it entered into a sales agreement with one of the U.K.’s largest digital transformation firms.

During Q4 2023, five out of the 933 hedge funds tracked by Insider Monkey had bought and owned Arqit Quantum Inc. (NASDAQ:ARQQ)’s shares. Hal Mintz’s Sabby Capital was the biggest shareholder through its $9,394 stake.

Disclosure: None. You can also take a look at 20 Biggest Natural Gas Companies in the World and 20 Healthiest States in the US in 2023.

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