10 Most Undervalued Cybersecurity Stocks To Buy According To Hedge Funds

Fahad Saleem
8 min read

In this article, we will take a look at the 10 most undervalued cybersecurity stocks to buy according to hedge funds. To see more such companies, go directly to 5 Most Undervalued Cybersecurity Stocks To Buy According To Hedge Funds.

Relentless cyber attacks from hackers, continuously evolving techniques of cyber criminals and the risks and costs attached with cybersecurity-related problems are causing companies around the world to take cybersecurity extremely seriously and spend a fortune in making sure they don’t become victim to the next big cyber attack. A detailed report by WSJ took a look at how the changing landscape of global information and online security industry is affecting the mindset of top-level executives, especially Chief Information Officers. The report cited James Beeson, Cigna’s Chief Information Security Officer, who said:

“Having the CIO as the champion for cybersecurity is absolutely critical. You’ve got to work directly with the business. You’ve got to realize that cybersecurity and making decisions about mitigation is really a balancing act.”

Part of the reason why companies have started to take cybersecurity extremely seriously is pressure from governments, regulators and investors. The SEC published some rules in this regard back in 2022 which the body is expected to finalize in the coming months. The SEC wants company board members to have expertise and clear policies regarding cybersecurity and how to protect company and investor assets from cyber attacks.

After these rules, companies will have to make sure they have qualified and experienced members in their boards who know the gravity of cyber attacks and strategies to protect against such attacks.

This cybersecurity emergency is proving to be extremely profitable for cybersecurity stocks.

Challenges to Endpoint Security Systems and Evolving Cyber Attacks

On the other hand hackers are swiftly finding new ways to bypass advanced cybersecurity tools. One of the best and most efficient ways to detect and prevent against cyber attacks is endpoint security systems and software. However, a Bloomberg report recently cited data from Mandiant, which said the company investigated 84 instances where endpoint security software were tampered with or disabled. For instance, in December 2022, Microsoft revealed that attackers were able to get the company’s systems apply its seal of authenticity to malware, which was then used to disable the company’s EDR and other security tools on victim networks.

Like other industries, AI is also affecting the cybersecurity industry and companies have already started using generative AI tools like ChatGPT to assist their employees in addition to deploying complex and technical AI-based cybersecurity tools to beef up their fences against hackers. Recently, toy company Mattel revealed that it has started experimenting with generative AI tools like ChatGPT to help its cybersecurity teams. However, the company is aware of the risks involved in using such tools. According to a WSJ report, Mattel’s chief information security officer Tom Le said that generative AI tools perform tasks like parsing large datasets and help cyber analysts, giving them time to do more important tasks.

Recommended Stories