If you’re looking for a new position to get into early, a lack of Wall Street coverage and analyst excitement can be a good thing. After all, hype can quickly lead to stock overvaluation, which can lead to losses. Plus, smaller companies, while riskier, offer more room to grow and therefore a better chance of long-term profits. Nowhere is this more true than in the world of undiscovered cybersecurity stocks.
As the cost of cyber attacks increases, the cybersecurity industry has great potential for growth. For example, beyond 2023, the average cost of a data breach in the United States is expected to be $9.48 millionGlobally, the cost of a data breach is $4.45 million.
So the potential for new, relatively undiscovered cybersecurity stocks to rise in value is very real. Here are three companies to watch over the next few years.
Abe Point (AVPT)
Highly specialized and relatively small, Abe Point (Nasdaq:AVPT)teeth, Cloud-based solutions For data management Microsoft (Nasdaq:MSFT) 365 environments. The company’s services directly assist businesses in safely storing their data in cloud storage. AvePoint’s technology achieves this management capability through seamless integration with the Microsoft 365 platform, including SharePoint and OneDrive.
The company is also an expert in data backup and recovery to support business continuity and prevent data corruption, and offers these data security services and tools to a wide range of organizational levels. AVPT can tailor its services to clients of almost any size, from small businesses to large enterprises.
AVPT is very attractive as a data management and security provider because it doesn’t focus on a “one size fits all” approach to services, which is why AVPT could be one of those undiscovered cybersecurity stocks to watch before Wall Street takes notice.
SecureWorks (SCWX)
It is one of the smaller, lesser known cybersecurity stocks currently trading. SecureWorks (Nasdaq:SCWX)teeth, Diversifying our service portfolioSpecifically, the company offers a range of services aimed at maintaining and protecting an organization’s information technology infrastructure, including security services such as threat detection, incident response and security awareness.
Currently, the company’s target market is mid-sized businesses and distributed enterprises that may not have the resources or expertise to assemble a custom security team in-house. As the cybersecurity market is expected to continue to grow rapidly due to an expanding threat landscape, Secureworks’ approach of helping businesses that don’t have the resources to do it on their own could be extremely lucrative.
Finally, the company is continually innovating to prepare for a paradigm shift in the cybersecurity industry as more and more providers move to cloud-based services. Therefore, it’s worth keeping SCWX in mind when considering which cybersecurity stocks to add to your portfolio.
Telos (TLS)
Speaking of the growing demand for cloud-based cybersecurity solutions, Telos (Nasdaq:TLS) is well positioned to benefit from this trend. This is because Telos Cloud-Based Security Solutions designed to protect critical infrastructure and high-value data.
Telos’ list of potential customers will continue to grow as more technology companies and enterprises move their computing and data storage infrastructure to off-site cloud data centers. Additionally, the company has already begun offering cyber threat intelligence services that analyze organizations’ data structures and habits to identify potential attacks.
Telos’s technological superiority and overall focus on threat detection and prevention are likely to see its value grow rapidly over the next few years. This is because Telos already serves a wide range of organizations, from government agencies to large enterprises. Therefore, the relatively quiet nature of Telos among the unknown cybersecurity stocks makes it worth keeping an eye on and even buying.
As of the publication date of this article, Viktor Zarev did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are solely those of the author, which is subject to InvestorPlace.com copyright. Publication Guidelines.