10 Best Cybersecurity Stocks To Buy Under $20
In this article, we discuss 10 best cybersecurity stocks under $20. If you want to see more stocks in this selection, check out 5 Cybersecurity Stocks Under $20.
After Russia’s invasion of Ukraine in late February, the United States put economic sanctions on Russia, in addition to multiple other nations boycotting the country. At the end of March, President Joe Biden implored American companies to “harden your cyber defenses immediately” as Russian cyber threats rose significantly. There was a tightness in the US labor market at the end of March, and there were roughly 600,000 unfilled positions in cybersecurity, as per data from CyberSeek.
In January 2022, The Federal Energy Regulatory Commission urged U.S. power grids to elevate their cybersecurity efforts to avoid hackers from getting control over operations. FERC Chairman Richard Glick told reporters:
“We can’t let our guard down on cybersecurity at all and we need to continually monitor whether the standards are appropriate.”
Similarly, in early September, the European Commission added new rules in the Cyber Resilience Act, which indicated that network and device security is of utmost importance in the face of rising cyberattacks globally. Damages from software and hardware cyber crime cost approximately $6 trillion last year. The proposal suggested that since one hacked device can corrupt an entire online ecosystem, products with an internet connection will have to meet cyber standards to gain an approval marking and be sold commercially.
The US government is also in the process of passing a Cloud Security Bill, which emphasizes the need for cybersecurity and will provide grants for cyber safety firms in the country. Investors looking to gain exposure to the boom in this sector usually seek out stocks like Fortinet, Inc. (NASDAQ:FTNT), CrowdStrike Holdings, Inc. (NASDAQ:CRWD), and Palo Alto Networks, Inc. (NASDAQ:PANW). However, those who are unwilling to spend exorbitantly can check out cybersecurity stocks under $20, which offer the same bang for the buck.
Our Methodology
We selected the following cybersecurity stocks based on positive analyst ratings and future growth potential. These equities were priced under or close to $20 as of October 3. We have arranged the list according to the hedge fund sentiment around the securities, which was assessed from Insider Monkey’s Q2 2022 database of about 900 elite hedge funds.
Photo by Jefferson Santos on Unsplash
Best Cybersecurity Stocks To Buy Under $20
10. Arqit Quantum Inc. (NASDAQ:ARQQ)
Number of Hedge Fund Holders: 4
Share Price as of October 3: $5.63
Arqit Quantum Inc. (NASDAQ:ARQQ) is a London-based provider of cybersecurity services through satellite and terrestrial platforms in the United Kingdom. On July 19, Deutsche Bank analyst Jamie Shelton initiated coverage of Arqit Quantum Inc. (NASDAQ:ARQQ) with a Hold rating and a $7 price target. If management executes on its plan over the next four years, the stock has intrinsic value meaningfully greater than the $7 price target, as per the analyst. Arqit Quantum Inc. (NASDAQ:ARQQ) has a "differentiated technology" which is positioned to benefit from the secular shift to quantum encryption, added the analyst. However, Shelton noted that it is a "very early-stage business that still has to prove the efficacy and commercial viability of its solution." Arqit Quantum Inc. (NASDAQ:ARQQ) has growth potential and investors can load up on shares while they are still cheap.
Among the hedge funds tracked by Insider Monkey, 4 funds reported owning stakes worth $298,000 in Arqit Quantum Inc. (NASDAQ:ARQQ) at the end of the second quarter of 2022, compared to 4 funds in the last quarter worth $1.9 million. Israel Englander’s Millennium Management owns 15,329 shares of the company as of Q2 2022, valued at $97,000.
In addition to Fortinet, Inc. (NASDAQ:FTNT), CrowdStrike Holdings, Inc. (NASDAQ:CRWD), and Palo Alto Networks, Inc. (NASDAQ:PANW), Arqit Quantum Inc. (NASDAQ:ARQQ) is one of the cybersecurity stocks to monitor amid the boom in the sector.
9. ForgeRock, Inc. (NYSE:FORG)
Number of Hedge Fund Holders: 8
Share Price as of October 3: $14.53
ForgeRock, Inc. (NYSE:FORG) is the 9th best cybersecurity stock to buy under $20. It was founded in 2009 and is headquartered in San Francisco, California. The company operates a digital identity platform to secure, manage, and govern the identities of users, employees, application programming interfaces (APIs), microservices, and devices worldwide. On August 22, the company announced a strategic partnership with Secret Double Octopus to expand ForgeRock, Inc. (NYSE:FORG)’s password-less and multi-factor authentication capabilities to enterprise workstations and advanced infrastructure. Priced at under $15, ForgeRock, Inc. (NYSE:FORG) is one of the best affordable cybersecurity stocks.
On September 30, Canaccord analyst T. Michael Walkley initiated coverage of ForgeRock, Inc. (NYSE:FORG) with a Buy rating and a $20 price target. The analyst expects ForgeRock, Inc. (NYSE:FORG) to be a long-term winner in the software security market, given its differentiated services will support growth through "land-and-expand" strategies. With the pandemic boosting digital transformation timelines by three to five years on average, he believes ForgeRock, Inc. (NYSE:FORG) is "a core centerpiece of a robust cybersecurity framework".
According to Insider Monkey’s second quarter database, 8 hedge funds were bullish on ForgeRock, Inc. (NYSE:FORG), with collective stakes worth $66.4 million, compared to 13 funds in the last quarter worth $79.3 million. Glen Kacher’s Light Street Capital is the largest position holder in the company, with 1.6 million shares valued at $35.7 million.
Here is what Baron Discovery Fund has to say about ForgeRock, Inc. (NYSE:FORG) in its Q4 2021 investor letter:
“In the fourth quarter, the Fund was down 3.13% versus the Russell 2000 Growth Index, which was roughly unchanged. For the full-year 2021, the Fund was up 4.89% and beat the 2.83% return of the Russell 2000 Growth Index by 2.06%. The lion’s share of the underperformance in the fourth quarter was due to stock selection in the Information Technology (IT) and Health Care sectors. In IT, there was a fairly even spread of winners and losers for the quarter, though IPO profit taking affected ForgeRock, Inc. after big third quarter gains.”
8. Mitek Systems, Inc. (NASDAQ:MITK)
Number of Hedge Fund Holders: 12
Share Price as of October 3: $9.16
Mitek Systems, Inc. (NASDAQ:MITK) is a California-based company offering ??mobile image capture and digital identity verification solutions in the United States, Europe, Latin America, and internationally. These solutions are embedded in native mobile applications and web browsers to provide safe digital experiences. Mitek Systems, Inc. (NASDAQ:MITK) is one of the top affordable cybersecurity stocks to watch.
On July 28, the company posted its FQ3 results, reporting non-GAAP earnings per share of $0.23 and a revenue of $39.3 million, outperforming market consensus by $0.03 and $3.31 million, respectively. Revenue over the period climbed 23.7% on a year-over-year basis. On July 29, H.C. Wainwright analyst Scott Buck reaffirmed a Buy recommendation on Mitek Systems, Inc. (NASDAQ:MITK) but lowered the price target on the shares to $19 from $22 following the fiscal Q3 beat.
According to Insider Monkey’s database, 12 hedge funds held stakes worth close to $70 million in Mitek Systems, Inc. (NASDAQ:MITK) at the end of June 2022, compared to 15 funds in the earlier quarter worth $95.3 million. Ben Gordon’s Blue Grotto Capital is the largest stakeholder of the company, with 3.18 million shares valued at $29.4 million.
7. Absolute Software Corporation (NASDAQ:ABST)
Number of Hedge Fund Holders: 12
Share Price as of October 3: $11.61
Absolute Software Corporation (NASDAQ:ABST) is the 7th best cybersecurity stock to under $20. It was incorporated in 1993 and is headquartered in Vancouver, Canada. The company provides software services that support the management and security of computing devices, applications, data, and networks for healthcare organizations, educational institutions, governmental agencies, and individual consumers. It operates in North America, the United Kingdom, Vietnam, Germany, Australia, Japan, and Latin America. Absolute Software Corporation (NASDAQ:ABST) stock is priced at $11.61 as of October 3, which makes it one of the best cheap cybersecurity firms to watch.
As per its earnings report on August 24, Absolute Software Corporation (NASDAQ:ABST)’s FQ4 revenue climbed 65% to $52.5 million, and the company reached 13.6 million active endpoints across its global customer base, representing an increase of 18% year-over-year. For FY 2023, adjusted revenue is expected to be in the range of $241.5 million to $246.5 million, reflecting adjusted revenue growth of approximately 14.8% to 17.1%
On August 24, TD Securities analyst David Kwan raised the price target on Absolute Software Corporation (NASDAQ:ABST) to $16 from $12 and maintained a Buy rating on the shares. The company posted a fiscal Q4 beat with better than anticipated 2023 guidance, the analyst told investors. Although margins are forecasted to drop in the short term due to more investments, Absolute Software Corporation (NASDAQ:ABST)’s growth profile is expected to strengthen, putting it "in a solid position to deliver on its Rule of 40 target for the third consecutive year," noted the analyst.
According to Insider Monkey’s data, 12 hedge funds were long Absolute Software Corporation (NASDAQ:ABST) at the end of Q2 2022, compared to 13 funds in the earlier quarter. Cynthia Paul’s Lynrock Lake is the leading stakeholder of the company, with approximately 6 million shares worth $51.3 million.
6. Telos Corporation (NASDAQ:TLS)
Number of Hedge Fund Holders: 12
Share Price as of October 3: $8.89
Telos Corporation (NASDAQ:TLS) is a Virginia-based company that provides information technology solutions and services worldwide. It offers enterprise cyber risk management, security compliance automation solutions, data encryption, and more. On September 15, Telos Corporation (NASDAQ:TLS) announced a collaboration with IBM Security as part of IBM’s Active Governance Services, which enables enterprises to operationalize and automate cybersecurity compliance. Telos Corporation (NASDAQ:TLS) is one of the best cybersecurity stocks under $20.
Wedbush analyst Daniel Ives upgraded Telos Corporation (NASDAQ:TLS) to Outperform from Neutral with a $15 price target on September 12. He believes the company will be successful on the federal cyber security front over the next 6-9 months. Based on his recent field work, the analyst thinks Telos Corporation (NASDAQ:TLS) is seeing a healthy deal environment for its federal cybersecurity offering, with clear momentum heading into the second half of the year and 2023. Further, the analyst noted that the Biden Administration is now focusing on "long overdue" new cybersecurity standards that should result in major future tailwinds for federal cyber players such as Telos Corporation (NASDAQ:TLS).
According to Insider Monkey’s Q2 data, 12 hedge funds were long Telos Corporation (NASDAQ:TLS), compared to 16 funds in the previous quarter. Mike Masters’ Masters Capital Management is the largest position holder in the company, with 2.05 million shares worth $16.5 million.
Like Fortinet, Inc. (NASDAQ:FTNT), CrowdStrike Holdings, Inc. (NASDAQ:CRWD), and Palo Alto Networks, Inc. (NASDAQ:PANW), elite hedge funds are monitoring Telos Corporation (NASDAQ:TLS) amid the rising interest in cyberspace.
Click to continue reading and see 5 Best Cybersecurity Stocks Under $20.
Suggested articles:
Disclosure: None. 10 Cybersecurity Stocks Under $20 is originally published on Insider Monkey.