1 Cutting-Edge Cybersecurity Stock That Could Explode in 2020

Expect Absolute Software stock to rise in prominence and value in 2020. The fight against cybercriminals will be more intense, and this cybersecurity company is helping customers solve security breaches.

The use of emerging technologies such as artificial intelligence (AI), 5G, and quantum computing is going to be more extensive in 2020. You can include other evolving technologies like the internet of things (IoT) and the cloud. All of them, however, will be under threat from the growing number of cybercriminals.

One business that many expect to see a meteoric rise in demand is cybersecurity. As we move into 2020, Absolute Software (TSX:ABT) becomes an exciting investment option. This cutting-edge cybersecurity company based in Vancouver will play a significant role in frustrating the evil intent of hackers.

Defence against cybercrime

Cyberwar is likely to intensify next year given the new targets and types of cyberattacks. The financial services sector is among the favourite targets of cybercriminals. In the ugly world of cybersecurity, businesses should be a step ahead to prevent or fight cybercrimes. There’s a need to put up a solid cyber defence for personal data privacy.

Likewise, devices and networks, as well as its users, need protection against theft and attacks. The time has come for companies to have cybersecurity skills. Absolute can help businesses avoid or cover security blind spots.

Bedrock of confidence

Absolute Software has four main goals: enhance IT management, protect sensitive data, reduce insider threats, and ensure compliance.  What this $356.88 million software application company is offering customers worldwide is control.

Its cloud-based platform gives IT and security personnel “absolute” control of data, devices, and applications, whether on or off a network or in the hands of unauthorized or illegal users. Absolute believes that without control, there’s no bedrock of confidence.

Pioneer in solving security breaches

No other company came ahead of Absolute in technology in offering uncompromised visibility and near real-time remediation of security breaches at the source. Similarly, there’s no self-healing endpoint security technology like “Absolute Persistence.” You can embed the software in more than 500 million devices.

Absolute is proud to have a technology that can withstand user error or malicious attacks and return devices to an original state of safety and efficacy. This technology can best serve industries such as education, financial services, government, healthcare, and professional services.

Strong business profitability

As of the unaudited 2020 first-quarter financial results (quarter ended September 30, 2019), Absolute Software’s revenue grew by 5.5% to US$25.7 million versus the same period last year. Net income rose to US$3.4 million or an exponential jump of 173%.

Absolute’s CFO Errol Olsen, describes the company’s Q1 2020 business profitability as very strong. There was double-digit growth in the enterprise and government sectors.

On a year-to-date basis, the stock has a gain of 15%. In 2020, management sees revenue growth of 4-7% while expecting cash from operating activities to be between 16% and 22% of revenue.

Visible growth

The catalyst for growth is Absolute Software’s differentiated product. The platform enables customers in business services, financial services, government, and health care manage the risks linked with the complexity of the modern enterprise.

Absolute is one of the stocks to watch out for in 2020. Cybercriminals had better beware. This industry-defining leader in endpoint security markets has the technology to repel any sinister plot.

Fool contributor Christopher Liew has no position in any of the stocks mentioned.

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