Since the rise of computer technology, cybersecurity stocks have become important cogs in the innovation ecosystem. However, its relevance has increased significantly in recent years. First, cyber-attacks are becoming more complex and, as a result, more damaging. recently, microsoft (NASDAQ:MSFT) said it is still investigating a data breach that occurred in January. The attack was attributed to Russian state-sponsored attackers and highlighted a broadly addressable market for undervalued cybersecurity stocks.
Second, artificial intelligence can help shorten the learning curve for novice hackers. This issue will become increasingly problematic as AI becomes more pervasive in everyday society. As a result, these undervalued cybersecurity stocks should get a lot of attention.
Fortinet (FTNT)
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One of the most undervalued cybersecurity stocks, fortinet (NASDAQ:FTNT) develops and sells security solutions such as firewalls, endpoint security, and intrusion detection systems. However, it does not have the highest level of support among analysts with a consensus hold view. This rating consists of 10 buys, 22 holds, and 2 sells. However, the upper target is at $90, indicating significant upside potential.
Although market expectations vary somewhat, experts are generally positive about Fortinet's expected growth. By the end of this fiscal year, it expects sales to reach $5.78 billion, up 9% from last year's $5.3 billion. We believe that in 2025, we could achieve sales of $6.57 billion. If so, that would mean a 13.6% increase from projected revenue in 2024.
To be fair, the growing focus on digital protection means that undervalued cybersecurity stocks are pretty hard to find. Still, FTNT trades at a price-to-earnings ratio (PEG) of 1.12. This is lower than the sector median of 1.62x. Combined with Fortinet's stable profitability, this is one deal to consider.
A10 Networks (ATEN)
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Specializing in manufacturing application delivery controllers, A10 Networks (New York Stock Exchange:Aten) offers a variety of protection solutions. These include web application firewalls, cloud access proxies, and distributed denial of service (DDoS) protection. To be fair, ATEN hasn't had the most promising look over the past 52 weeks. What is noteworthy is that the company's third quarter financial results report was dismal.
Still, the overall situation looks positive. Analysts expect sales to reach $263.74 million in fiscal 2024. This would be an increase of almost 5% compared to last year's print volume of $251.7 million. The situation is expected to improve further by the end of 2025, with sales reaching just over $286 million for him. This represents an 8.5% increase from the projected 2024 top line.
One positive associated with messy price movements is valuations. Specifically, ATEN is one of the undervalued cybersecurity stocks, trading at a forward price/earnings ratio of 16.56. This is lower than the sector median of 23.75x.
Finally, analysts have a consensus price target of $16, calling it a Moderate Buy. The ceiling target has risen to $17, making ATEN an interesting proposition.
Gen Digital (GEN)
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multinational software company, gen digital (NASDAQ:Gen) offers a range of solutions that enable people and businesses to get the most out of the digital world securely, privately and confidently. The company's brands include popular labels such as Norton and LifeLock. He also owns CCleaner, one of his top platforms for computer optimization solutions.
In the year since then, GEN stock has enjoyed a solid performance, which is no surprise. After all, new threats seem to be emerging all the time. Notably, experts believe that by the end of this fiscal year, Gen Digital's sales will reach his $3.81 billion. This is a 14.1% increase over last year's circulation of $3.34 billion.
The company expects to generate revenue of $3.94 billion in 2025. If that happens, it would be 3.5% above the expected top line in 2024. Interestingly, GEN stock trades at just 9.75 times forward earnings. Again, this is well below his sector median of 23.75x.
Finally, Cover analysts rate GEN a consensus Strong Buy with an average price target of $27.25. Even with a target as low as $25, this represents a significant upside return.
Publication date, Josh Enomoto did not have any positions (directly or indirectly) in any securities mentioned in this article. The opinions expressed in this article are those of the writer and are influenced by InvestorPlace.com. Publishing guidelines.
