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.
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research. The stock drifted along under $12 through 2022 to August when it moved up to about $16 which held to the start of November when it fell to its month-end close of $13.24. ABST is a leading provider of self-healing endpoint and secure access solutions.…
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.
They are IT consultants and the company is one of their largest positions. It is always buying back stock or distributing some cash to shareholders. Along with increased margins it is at a good valuation, so a good time to buy. It is globally diversified, growing very well by acquisition, and gives a high return…
The company is consolidating and growing slowly at 5 – 10% earnings growth. They are currently transitioning from hardware to software focused on security solutions.
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research The guidance was weak, and BB faces numerous challenges. But the company is still undergoing a strategic review, following overtures for a takeover. This remains a possibility, but it is hard to endorse on that alone. Fundamentals remain weak and much worse than expected. The…
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 is in the right place at the right time with the growth of the cloud and the expansion of the internet. It provides cloud services for securing and delivering computer content and has a module for for cybersecurity in the cloud. He has just trimmed another holding and used some of the proceeds to…
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.
IT security solutions provider. Last year, rested on their laurels. Change in management, upped game. His 12-month price target is $151.50. No dividend. (Analysts’ price target is $138.27)
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.
(A Top Pick May 26/22, Down 17%) It's out of favour. He targets $25.92 or 24% lower than today's price. Yields 2.11%. If you like semis, this is the cheapest one. Great quality, but they need to catch the next chip trend.
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.
Run by a good CEO, but shares are down because the market expects Washington to spend less on defence. A well-run company and shares are cheap.
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.
Defense is a moat oligopoly with barriers to entry. NOC owns long US Defence Dept. contracts and they own the intellectual property of their defence technology. They operate in 4 segments like space and defence which are predictable and stable. Revenues are stable; 86% of sales are with the US government. They have an $80…
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 expected a good quarter, while the street suspected a bad one because the quarter was getting released late Friday, something no company does unless there's trouble. They knew nothing! PANW soared 15% today because of their strong quarter (and short sellers)
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.
(A Top Pick Sep 09/22, Down 16%) Diversified business with lots of products. Engineering problems causing error in metals within engine turbines.Expecting engine problems to be a short term event.Company has excellent reputation.Good for long term investors. Expecting $9.5 billion in free cash flow by 2025.Will continue to hold.
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.
Sideways chart which has a history of wide swings. It could now roll over, but is breaking above old highs. Tough to call this. It could continue breaking out. If it breaks above $55 and holds, then sell.
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%.
MSFT vs. GOOG in terms of AI Though MSFT is up 32% this year vs. GOOG's 49%, he prefers MSFT, because Google fumbled their AI roll-out while MSFT will benefit more from AI, as offered in their suite of services and how it benefits their consumers. Both companies are strong with strong user bases and…