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.
Price target of $20.50 CAD. Cloud-based platform for enterprise and public sector. In the right place because of remote work. Should continue to go. Not cheap. Yield is 2.6%.
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 Feb 26/20, Up 13%) He likes their business, though wouldn't add to it now. His buy price is $105. It has a global platform. They can buy back shares or companies. Organic growth had lagged, but in the last quarter picked up, given the backlog of work.
The company is consolidating and growing slowly at 5 – 10% earnings growth. They are currently transitioning from hardware to software focused on security solutions.
Likes what they're doing, but it's taking a long time to get this business around the corner. Not cheap. Super interesting involvement in the auto sector. Security division recently had a stumble. Better places to put your money.
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.
A long term theme for him. Indifferent to the individual ETF. You should understand that cyber security is a critical growth area as the world digitizes. You should keep buying into the dips.
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.
The field has huge amounts of growth in it. This was Canada's first cyber security ETF. Cyber crime is expected to continue to grow. A leader in the space.
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.
Very good area in tech going forward. People working outside the office has created a lot of IT issues in cybersecurity. He anticipates better numbers in the next several quarters. No dividend. (Analysts’ price target is $133.47)
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.
(A Top Pick Jan 21/21, Down 8%)Stockchase Research Editor: Michael O'Reilly CTXS has triggered our stop at $118. We recommend covering the position at this time. We will look for better opportunities.
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.
The defence industry in total is starting to roll over. The Biden administration is not viewed as oriented towards defence spending so this is why it has gone down recently.
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.
They report Thursday. Not sure if they can deliver a lift in shares. Instead, stay long in AMD and Nvidia.
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 41.1%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with JNPR is progressing well. We now recommend trailing up the stop (from $17) to $26. If triggered this would all but guarantee a investment return over 29%, when including the previous recommendation to cover half.
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.
Stockchase Research Editor: Michael O'Reilly We reiterate our TOP PICK recommendation with LMT. The company just secured contracts with the Pentagon worth up to $6.6 billion. It trades at 14x earnings compared to peers at 18x. It pays a good dividend, backed by a payout ratio of 40% of cash flow. Its cash reserves are…
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.
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.
(A Top Pick Apr 22/21, Up 43.2%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with PANW is progressing well. We now recommend trailing the stop (from $360) to $425. If triggered, this would all but guarantee a net investment return of 23%, considering our recommendation to previously cover half the position.
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's adding to his holdings. He expects it to earn $5/share this quarter or a reasonable 16-17x PE. The aerospace business is starting to return to normal post-Covid, so there's a lot of runway ahead.
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.
Starting to see a sector rotation into growth stories that have more solid fundamentals. Dividend is reasonably attractive, balance sheet is great. Challenge is that market seems to be boom/bust, and there's competition from Europe. Don't chase. If you hold, keep it. Oracle offers more upside.
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%.