NetScout Systems (NTCT) stock is in focus after the company received Frost & Sullivan's 2025 Global Company of the Year recognition in network monitoring, spotlighting its role in real-time visibility, performance assurance, and network intelligence.

The Frost & Sullivan recognition lands at a time when the share price is US$27.95, with recent momentum reflected in a 1-day share price return of 1.67% and a 90-day share price return of 8.29%. While the short term has been relatively constructive, the picture is more mixed over longer horizons, with a 1-year total shareholder return of 26.76% contrasting with negative total shareholder returns over three and five years.

If this kind of network and cybersecurity story has your attention, it could be a good moment to look beyond a single name and check out high growth tech and AI stocks as well.

With NetScout trading at US$27.95 and sitting below an average analyst price target of US$30.42, and with some mixed long term returns, the key question is clear: is there genuine value left here, or is future growth already priced in?

Most Popular Narrative: 10.1% Undervalued

Compared with NetScout Systems' last close at US$27.95, the most followed narrative points to a fair value of US$31.09, suggesting some remaining upside based on its own assumptions.

There is a narrative that NetScout's integration of AI-driven capabilities (like Omnis AI Insights and AI-backed enhancements in DDoS defense) positions the company as a differentiated leader in an expanding observability and cybersecurity market, potentially prompting unrealistic expectations for sustained margin expansion and premium revenue multiples. Expectations may be embedded that NetScout will fully capitalize on proliferation of 5G, AIOps, and ongoing digital transformations, assuming the company can maintain technological leadership and capture a disproportionate share of incremental network monitoring and security spend, causing upward pressure on valuation multiples.

Curious what earnings path and margin profile need to hold for that valuation to make sense, and what future P/E multiple is baked in? The full narrative lays out the exact revenue trend, profit assumptions, and valuation math that connect today's price to that fair value.

Result: Fair Value of $31.09 (UNDERVALUED)

However, this story could change quickly if cloud migration and IT stack consolidation pressure legacy products, or if competition in network visibility and security starts to squeeze pricing and margins.

Build Your Own NetScout Systems Narrative

If you look at the numbers and come to a different conclusion, or just want to test your own assumptions, you can build a custom view in minutes by starting with Do it your way.

A good starting point is our analysis highlighting 2 key rewards investors are optimistic about regarding NetScout Systems.

Looking for more investment ideas?

If NetScout has you thinking more broadly about where to put your next dollar to work, it is worth widening the lens before the next move passes you by.

• Spot opportunities in smaller names that still show solid financial footing by checking out these 3534 penny stocks with strong financials before they appear on everyone else's radar.
• Tap into the momentum around artificial intelligence by reviewing these 24 AI penny stocks that combine AI exposure with the liquidity of lower priced shares.
• Zero in on companies where prices sit below cash flow based estimates of value by scanning these 869 undervalued stocks based on cash flows and compare them with ideas already on your watchlist.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.