In this article, we will take a look at the 5 most undervalued cybersecurity stocks to buy according to hedge funds. To see more such companies, go directly to 10 Most Undervalued Cybersecurity Stocks To Buy According To Hedge Funds.
5. Gen Digital Inc. (NASDAQ:GEN)
Number of Hedge Fund Holders: 32
Shares of Gen Digital Inc. (NASDAQ:GEN), previously NortonLifeLock, have lost about 14% year to date. Gen Digital Inc. (NASDAQ:GEN)’s PE ratio of 8.58 as of June 30 shows its valuation is currently attractive. Gen Digital Inc. (NASDAQ:GEN) is behind some of the most famous antivirus and data protection software solutions including Norton, Avast, LifeLock, Avira, AVG, ReputationDefender, and CCleaner.
In May, Evercore ISI started covering GEN stock with an Outperform rating. Evercore ISI analyst Peter Levine said in his note that Gen Digital Inc. (NASDAQ:GEN) is not only an anti-virus company but “the leading consumer cybersecurity platform” with “best of breed” tools.
As of the end of the first quarter of 2023, 32 hedge funds tracked by Insider Monkey had stakes in Gen Digital Inc. (NASDAQ:GEN). The biggest stakeholder of Gen Digital Inc. (NASDAQ:GEN) during this period was Jeffrey Smith’s Starboard Value LP which owns a $325 million stake in the company.
4. Juniper Networks, Inc. (NYSE:JNPR)
Number of Hedge Fund Holders: 33
Juniper Networks, Inc. (NYSE:JNPR) sells network and Cloud security hardware and software solutions. Juniper Networks, Inc. (NYSE:JNPR)’s PE ratio as of June 30 is 20.71. Juniper Networks, Inc. (NYSE:JNPR) has gained about 10% over the past 12 months.
In April Juniper Networks, Inc. (NYSE:JNPR) posted first quarter results. Adjusted EPS in the quarter totaled $0.48 beating estimates by $0.05. Revenue in the period came in at $1.37 billion, beating estimates by $30 million.
Citi recently started covering Juniper with a Buy rating, citing Juniper Networks, Inc. (NYSE:JNPR)’s AI potential and gross margin expansion. Citi gave a $38 price target to Juniper Networks, Inc. (NYSE:JNPR). Citi analyst said that they expect gross margin expansion at Juniper due to supply chain normalization and software sales mix.
Juniper Networks, Inc. (NYSE:JNPR) however saw a sharp decline in hedge fund sentiment in the first quarter. A total of 33 hedge funds in Insider Monkey’s database reported owning stakes in Juniper Networks, Inc. (NYSE:JNPR) as of the end of March, compared to 44 hedge funds in the previous quarter.
3. Leidos Holdings Inc. (NYSE:LDOS)
Number of Hedge Fund Holders: 35
Leidos Holdings Inc. (NYSE:LDOS) sells defense, IT, engineering, and aviation-related solutions. Leidos Holdings Inc. (NYSE:LDOS) offers several solutions and approaches in the cybersecurity space. Its PACKIT™ (Proven, Analytic-Centric Kill Chain Implementation and Transformation) solutions help businesses improve their cybersec posture. Leidos Holdings Inc. (NYSE:LDOS) also offers various solutions in risk management and cyber analytics domains.
Leidos Holdings Inc. (NYSE:LDOS)’s PE ratio as of June 30 stands at 18.15. As of the end of the first quarter of 2023, 35 hedge funds tracked by Insider Monkey had stakes in Leidos Holdings Inc. (NYSE:LDOS). The most notable stakeholder of Leidos Holdings Inc. (NYSE:LDOS) during this period was Anand Parekh’s Alyeska Investment Group which owns a $95.2 million stake in the company.
Wedgewood SMID Cap Strategy made the following comment about Leidos Holdings, Inc. (NYSE:LDOS) in its Q1 2023 investor letter:
“Top performance detractors for the quarter include First Republic Bank, Texas Pacific Land, Leidos Holdings, Inc. (NYSE:LDOS), Helen of Troy and IAA. Finally, and unfortunately—as we’ve discussed in these letters previously in commentary on Leidos – it appears a new Cold War may be emerging, and we believe this will spur long-term demand for the U.S. military, industrial, and energy industries, as we already have seen on the energy front, especially, with exports to European allies rising significantly since Russia’s invasion of Ukraine.”
2. Hewlett Packard Enterprise Company (NYSE:HPE)
Number of Hedge Fund Holders: 37
Hewlett Packard Enterprise Company (NYSE:HPE) is one of the best undervalued cybersecurity stocks to buy according to hedge funds. Hewlett Packard Enterprise Company (NYSE:HPE) offers several cybersecurity solutions. Its GreenLake platform for Cloud security is getting a lot of popularity. Hewlett Packard Enterprise Company (NYSE:HPE)’s PE ratio as of June 30 stands at 21.70.
As of the end of the first quarter of 2023, 37 hedge funds tracked by Insider Monkey had stakes in Hewlett Packard Enterprise Company (NYSE:HPE). The biggest hedge fund stakeholder of Hewlett Packard Enterprise Company (NYSE:HPE) was Richard S. Pzena’s Pzena Investment Management which owns a $208 million stake in the company.
1. Cisco Systems, Inc. (NASDAQ:CSCO)
Number of Hedge Fund Holders: 61
VPNs, secure web gateways, endpoint security solutions, firewalls, Cloud security solutions – Cisco Systems, Inc. (NASDAQ:CSCO) provides all sorts of cybersecurity products and services. It is also one of the most popular stocks among the elite hedge funds tracked by Insider Monkey. As of the end of the first quarter of 2023, 61 hedge funds tracked by Insider Monkey had stakes in Cisco Systems, Inc. (NASDAQ:CSCO). The biggest stakeholder of Cisco Systems, Inc. (NASDAQ:CSCO) during this period was AQR Capital Management of Cliff Asness which had a $493 million stake in the company.
You can also take a peek at 12 Best 5G Stocks To Buy Now and 10 Best Fast Growth Stocks To Buy.
