We not too long ago revealed a listing of 10 Best Cybersecurity Stocks to Invest in Under $20. On this article, we’re going to try the place OneSpan Inc. (NASDAQ:OSPN) stands towards different finest cybersecurity shares to put money into underneath $20.
The cybersecurity sector is at a tipping level, pushed by rising cyber threats, breakthrough applied sciences reminiscent of AI and IoT, and a renewed concentrate on nationwide safety and digital infrastructure. Regardless of a well-documented expertise shortage and evolving geopolitical considerations, the business continues to develop quickly, creating a super surroundings for innovation and funding.
Based on Fortune Enterprise Insights, the worldwide cybersecurity business was valued at $172.24 billion in 2023 and is predicted to achieve $562.72 billion by 2032, increasing at a CAGR of 14.3%. North America, notably america, dominates this surroundings, pushed by the expansion of e-commerce platforms, elevated digital adoption in industries reminiscent of BFSI and healthcare, and larger client consciousness. Cloud computing, AI, machine studying, and IoT applied sciences at the moment are on the forefront of present cybersecurity options, permitting enterprises to establish and stop digital breaches in actual time.
Nevertheless, as know-how advances, so do the hazards. McKinsey’s November 2024 report underlines the essential must make AI programs safer, advising cybersecurity suppliers to concentrate on the twin downside of defending each their very own AI fashions and people utilized by their shoppers. Generative AI and third-party integrations present new assault surfaces, necessitating the usage of smarter, extra adaptive safety applied sciences.
The necessity is additional heightened by important coverage developments. Based on WIRED, former President Trump slapped punitive tariffs on know-how imports, sending shockwaves throughout the semiconductor and e-commerce sectors. Whereas some tech companies might revenue from elevated demand for logistics and provide chain administration applied sciences, others, reminiscent of main tech giants, noticed their inventory costs fall sharply attributable to considerations about inflation and disrupted commerce routes. Tariffs on items from China and different important nations might enhance client costs and restrict the availability of essential cybersecurity parts, notably for cloud and knowledge middle operators.
Within the meantime, corporations’ stakes are nonetheless rising. Almost half of American companies have skilled important income losses on account of knowledge breaches, in response to Arcserve and IBM. In 2024, the common price of a breach was near $4.9 million; when occasions took greater than 200 days to establish, the fee elevated to $5.5 million. The risk floor is rising attributable to generative AI, and simply 40% of SaaS providers are actively monitored for safety, additional taxing already overworked safety groups.
Based on Forbes, there’s a paradox within the workforce, regardless of a 4.8 million cybersecurity professional deficit worldwide, hundreds of competent IT staff are nonetheless underutilized on account of strict recruiting practices and an absence of funding in native expertise improvement. Whereas levels and certifications are nonetheless essential, sensible expertise gained by means of laboratories, bug bounty packages, or internships has emerged as the important thing differentiator.
When mixed, these patterns level to a elementary transformation of the cybersecurity sector in addition to a rise in demand for cybersecurity providers. Cybersecurity corporations that may innovate at scale whereas navigating governmental modifications and world uncertainties are being keenly watched by buyers, notably these maintaining a tally of high-growth tech industries.
As a way to discover the Greatest Cybersecurity Shares to put money into underneath $20, we began by looking for corporations working within the cybersecurity sector utilizing the Finviz inventory screener, making use of a value filter to incorporate simply these buying and selling beneath $20 per share. Following the compilation of the checklist, we used Insider Monkey’s hedge fund holdings database to research hedge fund sentiment for every inventory. Subsequent, we organized the shares in response to the variety of hedge funds that owned every one in ascending order, as per Insider Monkey’s database of This fall 2024. The ultimate checklist consists of cybersecurity shares underneath $20 which might be presently ignored by institutional buyers, maybe representing discounted probabilities in a shortly altering discipline.
Why are we within the shares that hedge funds pile into? The reason being easy: our analysis has proven that we will outperform the market by imitating the highest inventory picks of the very best hedge funds. Our quarterly e-newsletter’s technique selects 14 small-cap and large-cap shares each quarter and has returned 373.4% since Could 2014, beating its benchmark by 218 proportion factors (see more details here).
Is OneSpan Inc. (OSPN) the Greatest Cybersecurity Inventory to Spend money on Underneath $20?
An government in a gathering room surrounded by digital screens discussing knowledge safety necessities.
Share Worth: $15.44
Variety of Hedge Fund Holders: 25
Due to main operational enhancements and strategic initiatives, OneSpan Inc. (NASDAQ:OSPN) is establishing a strong fame within the fields of cybersecurity and digital identification. OneSpan, headquartered in Boston, supplies digital workflow, safety, authentication, and id options all through Asia-Pacific, EMEA, and the Americas.
OneSpan Inc. (NASDAQ:OSPN) achieved a file adjusted EBITDA of $73 million, or 30% of income, in fiscal 12 months 2024, which concluded on December 31, 2024. This achievement demonstrated the corporate’s efficient shift to higher-margin software program and providers. ARR (annual recurring income) elevated 8.5% to $168 million, pushed by 6% progress in safety and 12% progress in digital agreements.
Subscription revenue elevated greater than 30%, accounting for 57% of complete income. The strategic shift away from lower-margin {hardware}, whereas having a minor affect on complete gross sales progress, considerably elevated profitability and operational effectivity. OneSpan generated $56 million in working money circulation and ended the 12 months with $83 million in money and no long-term debt, which exhibits that the corporate is well-positioned for future investments and shareholder returns.
Operationally, each the Safety and Digital Agreements divisions have been worthwhile throughout the 12 months. With a brand new CTO who makes a speciality of digital id, OneSpan is strengthening its R&D abilities to keep up its management in authentication and e-signatures. OneSpan Inc. (NASDAQ: OSPN) stands out as the most effective cybersecurity shares underneath $20, offering an interesting mixture of progress, profitability, and shareholder returns.
General, OSPN ranks 4th on our checklist of finest cybersecurity shares to put money into underneath $20. Whereas we acknowledge the potential of OSPN, our conviction lies within the perception that sure AI shares maintain larger promise for delivering greater returns, and doing so inside a shorter time-frame. There may be an AI inventory that went up for the reason that starting of 2025, whereas widespread AI shares misplaced round 25%. In case you are in search of an AI inventory that’s extra promising than OSPN however that trades at lower than 5 instances its earnings, try our report about this cheapest AI stock.
