Top Cyber Security Stocks to buy in 2019
Cyber security issues are front and centre of discussion recently. The sector is outperforming the market year to date. Security has become a top priority for corporations and there is an expected rise in allocation to security spending to combat potential threats. There is rising concerns for possible interference in the upcoming elections and this also contributes to the bullish outlook on the cyber security sector.
Here are some publicly traded companies that are in the space:
💻 Cyber Security
Leonovus Inc (LTV-X)
A data storage company that specializes in block chain technology. They are working on a new token that can be a great opportunity.
Absolute Software Corp. (ABT-T)
A Canadian company that specializes in endpoint security and data risk management solutions. They have steady cash flow in a niche market.
A sizable company of $800 million. He follows it and is waiting for a pullback. Pays a 2.4% dividend yield, attractive. They provide enterprise cloud and flourished during Covd and remote wwork, but has retreated post-Covid. Is up in the past month. Would buy at $12-13. But cloud computing is a crowded space, unlike just…
CGI Group (A) (GIB.A-T)
A global information technology consulting company out of Montreal. The charts are showing higher highs and lows. Their seasonality is Q4.
(A Top Pick Dec 02/21, Up 7%) Boring is beautiful. Slowdown emerging in Europe. Lots of it is mission-critical, flexibility of proximity servicing. Undemanding multiple. Continues to tuck in smaller peers. Stock chart confirms its successful strategy.
The company is consolidating and growing slowly at 5 – 10% earnings growth. They are currently transitioning from hardware to software focused on security solutions.
Results have been sporadic for a number of years.Hard company to model going forward.Better names to own in the tech sector (predictable earnings).Not a strong business for the past 10 years.Customers turning over etc.
PureFunds ISE Cyber Security ETF (HACK-N)
This ETF allocates their funds in an interest way. Their top 10 holding account for only 34% of the fund. It is the best security ETF to diversify risk.
These are good ETFs for the cybersecurity theme. Thinks that they will be more and more important in the future. Should have some cybersecurity in your portfolio for the next decade. Good for longterm, could hold for the next 10 years. Probably the most needed area of technology.
Evolve Cyber Security Index ETF (CYBR-T)
This ETF is also considered recession-proof since cyber security is a necessity in today’s world. With the move towards more digital payments, it will get a lift.
It's the largest cybersecurity ETF in Canada and charges the lowest MER. Cybersecurity growth is exploding. But these types of stocks are not at a bottom. Better to nibble and dollar-cost average.
Akamai Technologies Inc. (AKAM-Q)
An American network and cloud service provider. It is one of the world’s largest distributed computing platform.
It's the largest cloud content delivery network. They beat the street last Tuesday, but plunged 9%. They delivered a good, but imperfect quarter. It was one of many tech stocks that reported good quarters last week, but still sold off.
Check Point Software Tech (CHKP-Q)
A multinational provider of software and hardware products for IT security. They are in the fibre security market and is one of the larger and more global company in the space.
Cybersecurity is a very important area to own. Secular growth area. US government is putting a lot of investment in. Lots of room to grow.
Citrix Systems (CTXS-Q)
A multinational software company that provides software as a service and cloud computing technologies. They own the Go to Meeting brand used for managing remote networking and meetings.
Among the biggest losers on the S&P in 2021 #7, down 27%. This software company could be put up for sale, pushed by activists. He has no idea what CTRX is worth. They used to be the king of business collaboration software. He once loved their product. Now, there are too many competitors.
Elbit Systems (ESLT-Q)
An international defense electronics company engaged in a wide range of programs. They are also the world’s biggest producer of military drones. The company is also a big player in cyber warfare.
Owns shares in the company and is one of the largest shareholders. Performance of stock price has been excellent. Very strong company with excellent management team. Expecting demand for defense technology will be higher as global tensions persist.
FireEye Inc (FEYE-Q)
An enterprise cyber security company that protects against advanced cyber threats. It is one of the imminent security as a service company.
Poster child when it comes to security as a service. Offer software instead of hardware, and the first to get in, so they have a lead. Instead, he owns Palo Alto and Splunk on the cybersecurity side. But it's on their shopping list, once markets settle down.
F5 Networks (FFIV-Q)
An American-based company that specializes in application delivery networking technology for security. They monitor the internet and servers.
Interesting company. Basically they monitor Internet to servers. Came out in March with some really disastrous earnings, but since then have come out with 2 really good quarters. Business has really picked up for them. Customers have come back. Have some new products out there. Really good cash flow going now.
One of the most prominent companies in technology and security. Their chips are used in a variety of phones and computers. The stock price has done extremely well.
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research. EPS of 10c missed estimates of 19c; sales of $14B missed estimates by 3%. 1Q sales decline of 40% reflects demand weakness across its core client and datacenter segments, though the company remains at a lower risk of losing share in the client segment. Shortfall…
Juniper Networks (JNPR-N)
A networking products company that owned Western Digital. They are in the router world that is critical to future growth of the internet.
(A Top Pick Nov 03/20, Up 59.3%)Stockchase Research Editor: Michael O’Reilly Our PAST TOP PICK with JNPR has triggered its stop at $32. To remain disciplined, we recommend covering the position at this time.
Lockheed Martin (LMT-N)
An American aerospace,m défense and security company with advanced technologies. It is not terribly overvalued and it’s recession-proof. They would profit from geopolitical issues.
(A Top Pick Aug 31/22, Up 7%) Half of its revenues come from the the U.S. Defence Dept. Now we're seeing a slight pullback. It's strong from now into April. Unfortunately, we're seeing rising defence budgets and military build-up around the world.
Northrop Grumman (NOC-N)
An aerospace and defense tech company. They broke above their 200 day average and increased their dividends. They are currently buying back shares.
It has fallen so far, especially compared to peers Lockheed and Raytheon (both of which he likes). Would buy at these levels.
Palo Alto Networks (PANW-N)
A network and enterprise security company. They dominate the cyber security space that is fairly valued. The company is currently transitioning from licenses to subscriptions.
He owns CHKP instead, but PANW has done a good job. Cybersecurity is a very important area to own. Secular growth area. US government is putting a lot of investment in. Lots of room to grow.
Proofpoint, Inc. (PFPT-Q)
An enterprise security company that provides software as a service and products for cyber security. They mainly protect emails and are growing internationally.
A cybersecurity company that protects email. He likes their international growth opportunities. They seem to be latching onto Microsoft Office's 365; the more MSFT goes into the cloud, the more customers will need email protection, which is where PFPT comes in. He sees 25% upside in the next 12 months. He's been adding to his…
A major U.S. defense contractor. It is a hybrid defense stock that is involved in cyber security. It currently trades at a good valuation.
He kicks himself for not buying this. They just reported great numbers, because they found many more engineers. Are seeing a lot of orders from defence and commercial businesses. Are enjoying an aerospace bull market, too.
Symantec Corp (SYMC-Q)
An American software company that offers security, storage and backup software. It is an anti-virus software company that is moving to a software as a service model.
A great company. Anti-virus software companies are moving to software as a service model, and this business is getting more competitive. But he doesn't know Symantec's funamentals, though he likes their business model. He would dig further and if it looks positive, then buy it.
A multinational tech conglomerate that develops networking hardware. It is a standalone product and are starting to adjust to cloud-based environment.
Stockchase Research Editor: Michael O'Reilly We again reiterate this global maker of internet protocol and network products as a TOP PICK. Recently reported earnings beat expectations as revenue increased over 5% on the quarter and revenue set an all time record -- supporting a ROE over 30%. It pays a good dividend backed by a…
An American multinational tech company. They develop and manufacture computer software, personal computers and services. They are doing very well and have just bumped up dividends by 11%.
Trimmed his position earlier this month because the CEO warned of sales weakness. They just reported: EPS beat and adjusted operating income also beat. Did excellent expense controls. Cloud computing also beat. Shares initially jumped but plunged after the CEO's conference call when he delivered weak guidance: revenue to shrink in cloud (4-5%) and personal…