At the beginning of the year, I’d discussed how a newcomer could seek exposure to the cybersecurity space. The relatively new sector posted strong growth over the course of the 2010s.
Today, I want to look at two top cybersecurity stocks that are worth snatching up in the summer. Moreover, we’ll explore what is meant by a cyber pandemic. Let’s jump in.
Should you be worried about a potential cyber pandemic?
Back in May, I’d explored how investors should react to the spectre of a potential cyber pandemic. The World Economic Forum (WEF) came together to host a virtual round of “Davos dialogues.” One of the topics political and economic leaders touched on was a cyber pandemic.
The COVID-19 pandemic dramatically increased the dependency of economies and societies on digital technology. This means that there is also increased vulnerability to cyber-attacks. The June Colonial Pipeline cyber attack in the United States showed how one such attack could cripple local infrastructure. In response, the Federal Motor Carrier Safety Administration issued a regional emergency declaration for 17 states and Washington D.C.
Experts are warning that attacks will continue. This means that there is more urgency for public and private entities to bolster their cybersecurity capabilities. Meanwhile, investors need to take notice.
Why Blackberry is a cybersecurity stock worth owning right now
Blackberry (TSX: BB)(NYSE: BB) is a Waterloo-based technology company that has undergone a successful transition from a hardware giant to software. Its shares have climbed 70% in 2021 as of close on July 7. The stock has climbed nearly 120% in the year-over-year period.
What makes Blackberry qualify as a cybersecurity stock? Blackberry won a multi-million-dollar contract to be the security platform of choice with the United States Department of Defense in 2016. The company unveiled its first-quarter fiscal 2022 results on June 24. It saw its cybersecurity revenue reach $107 million. Meanwhile, it posted a gross margin of 57% and APR of $364 million.
In the quarter, the company announced the Blackberry Optics 3.0, a next-generation cloud-based endpoint detection and response (EDR) software. This is a cybersecurity stock worth stashing for the long haul.
Here’s another cybersecurity stock gaining momentum
Absolute Software (TSX: ABST)(NASDAQ: ABST) is a Vancouver-based company that develops, markets, and provides cloud-based endpoint visibility and control platform for the management and security for enterprise and public sector organizations. This cybersecurity stock has increased 16% so far in 2021. Moreover, its shares are up 21% from the prior year.
In Q3 fiscal 2021, Absolute Software delivered revenue growth of 18% to $30.7 million. Moreover, adjusted EBITDA jumped 23% year-over-year to $7.7 million. Absolute Software was powered by “…strong demand for Endpoint Resilience capabilities.” Indeed, management boasted of its strong position in this niche space going forward.
This cybersecurity stock is still trading in favourable value territory compared to the industry average. Moreover, it offers a quarterly dividend of $0.08 per share, representing a modest 1.8% yield.
