Three cybersecurity-adjacent software companies are trading well below their estimated fair values, with upside potential of between 36% and 46%, according to WarrenAI rankings, despite a challenging period for the sector.
The companies — Five9 Inc, Pegasystems Inc and PTC Inc — have all recorded sharp share price declines over the past year. However, WarrenAI said each continues to enjoy strong analyst backing, solid cash flow generation and favourable long-term earnings growth prospects.
Five9 Inc (NASDAQ: FIVN) tops the list, with shares trading at $23.44 and an estimated 45.9% upside to fair value. The stock has fallen 15.4% over the past 12 months but is forecast to deliver a five-year compound annual earnings-per-share (EPS) growth rate of 61.3%.
The cloud software provider generates a free cash flow yield of 10.5% and has received Strong Buy ratings from 21 analysts. The company recently appointed a new chief executive with expertise in artificial intelligence as it seeks to accelerate subscription growth.
Truist Securities reaffirmed its Buy rating with a $23 price target on 7 January 2026. Five9 also achieved a perfect Piotroski Score, a measure of financial strength.
Pegasystems Inc (NASDAQ: PEGA) ranks second, trading at $31.05 with an estimated 38.2% upside to fair value. Its shares have dropped 42.4% over the past year and recently touched a 52-week low.
Despite the decline, the company retains Strong Buy ratings from 11 analysts. Pegasystems is expected to deliver a five-year EPS growth rate of 4.6% and offers a free cash flow yield of 4.2%. It also reports a return on equity of 51.7%, while analysts have issued price targets as high as $71, according to reports published on 22 June 2026.
PTC Inc (NASDAQ: PTC) completes the list, trading at $124.55 with an estimated 36.5% upside to fair value. The stock has fallen 29.2% over the past year but continues to receive Strong Buy recommendations from 20 analysts.
The software company is forecast to achieve a five-year EPS growth rate of 14.5% and generates a free cash flow yield of 3.5%. PTC also reports an EBITDA margin of 40.5% and is projected to generate approximately $1 billion in free cash flow. Recent analyst price targets have reached as high as $233.
According to WarrenAI, the combination of attractive valuations, strong analyst conviction and healthy underlying financial metrics positions the three companies as notable opportunities for investors despite continued volatility across the software sector.
