3 Underappreciated Cybersecurity Stocks to Buy Now

Core Viewpoint - The article highlights underappreciated cybersecurity stocks that are currently undervalued relative to their financial metrics, suggesting they present potential investment opportunities as the demand for cybersecurity solutions continues to grow due to increasing online threats [1]. Group 1: Rapid7 (RPD) - Rapid7 is based in Boston, Massachusetts, and provides cybersecurity solutions under brands like Nexpos and Metasploit, focusing on endpoint-to-cloud data collection and monitoring [3]. - RPD stock trades at a forward earnings multiple of 17.69X, which is lower than the sector median of 24.3X, with analysts predicting earnings per share (EPS) to reach $2.19 by the end of the fiscal year, a recovery from last year's loss of $2.46 per share [4]. - Projected sales for Rapid7 could hit $841.86 million, reflecting an 8.25% increase from last year's $777.71 million, with an optimistic target of EPS at $2.50 on sales of $882.4 million [5]. Group 2: Gen Digital (GEN) - Gen Digital, headquartered in Tempe, Arizona, offers cyber safety solutions under well-known brands like Norton and Avast, and has been in operation since 1982 [7]. - The company has a forward earnings multiple of only 10.62X, significantly below the sector median of 24.3X, with analysts forecasting EPS to rise to $2.22, a substantial increase from last year's 96 cents per share [9]. - Revenue for Gen Digital is expected to grow nearly 4% to reach $3.95 billion in 2024, with a historical growth rate of 9.4% over the past five years [10]. Group 3: Tenable (TENB) - Tenable, located in Columbia, Maryland, provides cyber exposure solutions and offers a cloud-delivered Vulnerability Management solution [12]. - TENB stock is currently undervalued, trading at a price/earnings-to-growth (PEG) ratio of 1.21X compared to the sector median of 1.61X, indicating potential for growth [13]. - Analysts predict EPS will reach $1.12 by year-end, a significant turnaround from last year's loss of 68 cents per share, with revenue projected to be $922.72 million, up 15.53% from $798.71 million in 2023 [14].