The 3 Most Undervalued Cybersecurity Stocks to Buy in March 2024


  • Rising digital threats may reward these undervalued cybersecurity stocks.
  • Fortinet (FTNT): Leading cybersecurity firm with solid growth projections and a positive outlook for sales, offering potential upside for investors.
  • A10 Networks (ATEN): Provider of diverse protective solutions, showing positive sales growth prospects, and presenting an intriguing opportunity in the cybersecurity sector.
  • Gen Digital (GEN): Multinational software company offering robust digital security solutions and demonstrating strong revenue growth in the cybersecurity sector.
Undervalued Cybersecurity Stocks - The 3 Most Undervalued Cybersecurity Stocks to Buy in March 2024

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Ever since the rise of computer technology, cybersecurity stocks have represented an important cog in the innovation ecosystem. However, their pertinence has risen significantly in recent years. First, cyberattacks are becoming increasingly complex and therefore damaging. Recently, Microsoft (NASDAQ:MSFT) stated that it’s still dissecting a data breach that occurred in January. That attack stemmed from a Russian state-sponsored actor, thus underscoring the wide addressable market for undervalued cybersecurity stocks.

Second, artificial intelligence may help shorten the learning curve for novice hackers. That’s going to be increasingly problematic as AI becomes further ingrained in everyday society. As a result, these undervalued cybersecurity stocks should attract significant attention.

Fortinet (FTNT)

The Fortinet logo on a wall
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One of the top undervalued cybersecurity stocks, Fortinet (NASDAQ:FTNT) develops and sells security solutions such as firewalls, endpoint security and intrusion detection systems. However, it doesn’t have the greatest level of endorsement among analysts with a consensus hold view. This assessment breaks down as 10 buys, 22 holds and two sells. However, the high-side target lands at $90, indicating sizable upside potential.

Despite some variance in terms of market expectations, overall, the experts have a positive view of Fortinet’s projected growth. By the end of this fiscal year, they anticipate that sales will hit $5.78 billion, up 9% from last year’s tally of $5.3 billion. In 2025, they believe a top line of $6.57 billion is possible. If so, that would imply a 13.6% jump from 2024’s forecasted revenue.

To be fair, the heightened interest in digital protection means it’s rather difficult to find undervalued cybersecurity stocks. Still, FTNT trades at a price/earnings-to-growth (PEG) ratio of 1.12X. That’s lower than the sector median 1.62X. Combined with Fortinet’s consistent profitability, it’s one of the deals to consider.

A10 Networks (ATEN)

The logo for A10 (ATEN) is seen on the side of a building.
Source: Michael Vi /

Specializing in the manufacturing of application delivery controllers, A10 Networks (NYSE:ATEN) offers a wide variety of protective solutions. These include web application firewalls, cloud access proxy and distributed denial-of-service (DDoS) protection. To be fair, ATEN hasn’t had the most promising look across the past 52 weeks. Notably, the company’s third-quarter earnings report was considered dismal.

Still, the overall picture appears positive. Analysts believe that in fiscal 2024, sales should reach $263.74 million. That would be up almost 5% against last year’s print of $251.7 million. Circumstances may improve even more by the end of 2025, with sales projected to reach just over $286 million. That would imply an 8.5% gain from 2024’s forecasted top line.

One positive related to the messy price action is the valuation. Specifically, ATEN is one of the undervalued cybersecurity stocks, trading at a forward earnings multiple of 16.56X. That’s lower than the sector median 23.75X.

Lastly, analysts peg shares a consensus moderate buy with a $16 price target. The high-side target rises to $17, making ATEN an intriguing proposition.

Gen Digital (GEN)

A person holding a tablet with a key lock hologram floating above it. Represents cybersecurity stocks.
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A multinational software company, Gen Digital (NASDAQ:GEN) provides various solutions to help people and enterprises extract the most out of the digital world safely, privately, and confidently. Its brands include popular labels such as Norton and LifeLock. It also owns CCleaner, which is one of the top platforms for computer optimization solutions.

Over the trailing one-year period, GEN stock has enjoyed a robust performance, which isn’t surprising. After all, new threats seemingly emerge all the time. Notably, by the end of this fiscal year, experts believe that Gen Digital will ring up sales of $3.81 billion. That’s up 14.1% against last year’s print of $3.34 billion.

In 2025, they believe revenue of $3.94 billion is in order. If so, that would be 3.5% up 2024’s projected top line. Enticingly, GEN stock trades at only 9.75X forward earnings. Again, that’s well below the sector median of 23.75X.

Finally, covering analysts rate GEN a consensus strong buy with a $27.25 average price target. Even at the low target of $25, this implies a decent upside return.

On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines.

A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare. Tweet him at @EnomotoMedia.

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