Cybersecurity may not always dominate headlines like AI, but it remains one of the most critical investment themes on Wall Street. As data breaches, fraud, and digital threats continue to climb, companies that help organizations safeguard information and identities are drawing renewed attention.
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That renewed attention is translating into big business. According to Fortune Business Insights, the global cybersecurity market topped $193 billion last year, and is expected to exceed $218 billion this year. Over the next 7 years, the industry is predicted to show a CAGR of 14.4%, and to reach nearly $563 billion by 2032.
That kind of growth always brings opportunities, and B. Riley’s 5-star analyst Erik Suppiger is on the case, pointing out cybersecurity stocks that look attractive – and deserve a closer inspection from investors. We’ve opened up the TipRanks database to examine two of his picks. Let’s dive in.
Varonis Systems (VRNS)
We’ll start with Varonis Systems, a Miami, Florida-based cybersecurity firm with a $6.4 billion market cap and $551 million in annual revenue last year. Varonis has put together a proprietary cloud-native data security platform, designed to meet the pressing needs of today’s digital environment. The company’s platform protects the most critical data in real time, through the use of AI-powered automation processes.
Varonis’ protective services include identity protection, database activity monitoring, data loss prevention, data classification, data detection and response, data access governance, and data security posture management. The extensive use of AI to automate processes allows for efficient allocation of security resources, to proactively protect vulnerable data.
From the customer’s perspective, Varonis’ platform offers strong protection for data at the source, in cloud and hybrid cloud environments, in servers, and in SaaS and IaaS systems. Varonis boasts that it can address all of the major cybersecurity threats, to provide positive outcomes for its customers. The company describes its business approach as protecting data first, not last.
Varonis has successfully leveraged its expertise in data protection to generate a solid business. The company’s last quarterly report, covering 2Q25, showed a top line of $152.2 million in the reporting period, for a 17% year-over-year gain and beating the estimates by $4.33 million. On earnings, Varonis realized 3 cents per share by non-GAAP measures, beating the forecast by 2 cents per share. The company has proven adept at generating cash, and for the year through June 30, 2025, the firm’s free cash flow came to $82.7 million – up from the $67.3 million reported in the first half of 2024. In a metric that bodes well for the coming years, Varonis reported a 19% year-over-year increase in annual recurring revenue (ARR), to $693.2 million. The company expects its ARR to reach the range of $748.0 million to $754.0 million for the full year 2025.
When we check in with Suppiger, we find the 5-star analyst upbeat on the stock, based on the company’s quality and capabilities, and its potential for long-term growth. He writes, “Varonis is a leading provider of data security technology, and we believe, based on discussions with industry contacts, that several market trends are generating robust demand for data security. We also believe the company leverages differentiated technology that uniquely enables it to automate remediation, in addition to detecting and preventing data attacks. In addition, investor expectations for VRNS were, in our opinion, tempered earlier this year when the company reset expectations for revenue growth and earnings due to a migration of its customer base to its SaaS platform. However, after Varonis completes the migration at the end of FY25E, we expect it to be well positioned for upside potential in revenue and earnings growth.”
The analyst, who is rated by TipRanks among the top 4% of the Street’s stock pros, sets a Buy rating on VRNS, and his price target of $80 points toward a one-year upside of 38%. (To watch Suppiger’s track record, click here)
The Strong Buy consensus rating on Varonis is based on 19 recent reviews that include 17 to Buy and 2 to Hold. The shares are priced at $58.49 and their average target price, of $63.56, suggests a 9% gain in the coming year. (See VRNS stock forecast)
OneSpan, Inc. (OSPN)
Boston-based OneSpan, the next stock we’re looking at, focuses on information security, fraud protection, multi-factor authentication, and e-signature security – all vital aspects of access security, a growing field in the larger realm of cybersecurity. Access security ensures that systems are protected from unauthorized users, or that authorized users don’t exceed their permissions. OneSpan excels in this area, and has built up a client base of major names, including such heavy hitters as IBM, RBC, and even NASA.
OneSpan’s customer base skews heavily toward the financial industry, and the company boasts that its security systems and products are used by nearly two-thirds of the world’s 100 largest banks. But it’s not only the financial world that trusts OneSpan; the company works with customers across a wide range of fields, and provides security solutions for everything from human resources to healthcare services to insurance agencies. The breadth of the company’s success simply underlines the vast need for services such as customer authentication, secure transaction signing, mobile app security, and workforce authentication. OneSpan offers these services, and more, in over 100 countries around the world, and processes 10 billion-plus authentication transactions annually.
The company is not just resting on its successes, it is also actively working to expand its products and technology to meet the ever-changing security needs of the digital world. One example – in June of this year, OneSpan announced that it had acquired Nok Nok Labs, an important provider of FIDO passwordless software authentication solutions. The acquisition adds a new layer to OneSpan’s capabilities, and allows customers to choose new options for security. The financial details of the acquisition were not disclosed.
Turning to the company’s 2Q25 report, the last financials to be released, we see that OneSpan had quarterly revenues of $59.84 million. This was down almost 2% year-over-year, but beat the forecast by $797,000. At the bottom line, the company reported a non-GAAP EPS of 34 cents, which was 5 cents per share ahead of the estimates. OneSpan expects full-year 2025 revenue to be in the range between $245 million and $251 million. The company is guiding toward $186 million to $192 million in ARR by year’s end, an increase from the previous guidance of $180 million to $186 million.
Among the bulls is B. Riley’s Suppiger, who emphasizes where OneSpan’s strength lies. “We believe that OSPN has a blue-chip customer base, MFA demand is growing rapidly and AI represents a compelling demand catalyst,” Suppiger opined. “OSPN also provides eSignature technology, which is another high-growth market. The company has focused on selling to banks and financial institutions, where it has a strong brand and is differentiated by its high-end security capabilities for meeting stringent compliance standards.”
“We believe that CEO Victor Limongelli has demonstrated solid execution in positioning the company for profitable growth and maximizing shareholder value since he joined in early 2024. OSPN generates healthy financial metrics, with subscription sales contributing more than 60% of revenue, adjusted EBITDA margins of ~30%, and a dividend yield of 3%… we believe OSPN is fundamentally sound with attractive prospects, and we view its depressed valuation of 8.6x CY27E EPS as a buying opportunity,” the analyst added.
These bullish comments support Suppiger’s Buy rating, and his $23 price target indicates potential for a robust 55% gain in the next 12 months.
Overall, OneSpan has earned a Moderate Buy consensus rating, based on 5 reviews that break down to 2 Buys and 3 Holds. The shares are currently trading for $14.82 and the $17.63 average price target implies a one-year gain of 19%. (See OSPN stock forecast)
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Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.