Industry Overview - The cybersecurity sector is increasingly vital as the risk of data breaches and cybercrimes rises, driven by the AI revolution [3][4] - IBM's 2025 report indicates the global average cost of data breaches is $4.44 million, with U.S. incidents averaging $10.22 million, particularly high in the healthcare sector at $7.42 million [1][2] Market Growth - The cybersecurity market is projected to grow to $270 billion, with a 12% annual growth rate as companies increase spending on cybersecurity products by 50% [4][5] - Increased spending on security software is expected to capture a larger share of IT budgets due to the rising volume of cyberattacks [5] Investment Opportunities - Focus is shifting towards cybersecurity companies that can demonstrate consistent revenue growth and profitability [6] - A list of the best cybersecurity stocks under $50 has been compiled, highlighting those favored by elite hedge funds [8][9] Company Highlights - **Allot Ltd. (NASDAQ: ALLT)**: Current stock price is $9.25 with a 42.71% upside potential. The company reported a 14% year-over-year revenue growth, totaling $26.4 million, and a significant increase in net income [11][12][13] - **Radware Ltd. (NASDAQ: RDWR)**: Current stock price is $23.60 with a 54.39% upside potential. The company recently launched the LLM Firewall to protect against AI-targeted attacks and signed a partnership with Hitachi Solutions for its Cloud Application Protection Service [16][17][19]

Group 1 - Allot Ltd. is recognized as a promising tech stock by Wall Street analysts, with TD Cowen initiating coverage with a Buy rating and a price target of $13, citing strong growth potential in the cybersecurity market [1][2] - The company is strategically focused on the small business sector, which presents a significant total addressable market (TAM) opportunity of $10 billion [2] - Allot Ltd. develops, sells, and markets network intelligence and security solutions across various regions including Israel, Europe, Asia, Oceania, the Americas, the Middle East, and Africa [3]