2 Cyber Security Stocks You Should Own This Decade

The threat of a cyber pandemic should inspire you to snatch up cyber security stocks like Blackberry Ltd. (TSX:BB)(NYSE:BB) in July.

| More on:

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s premium investing services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn more

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.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Ambrose O'Callaghan has no position in any stocks mentioned. The Motley Fool recommends Absolute Software Corporation and BlackBerry.

More on Investing

Simple life style relaxation with Asian working business woman healthy lifestyle take it easy resting in comfort hotel or home living room having free time with peace of mind and self health balance
Stocks for Beginners

New Investors: Follow the KISS Model With These 3 TSX Stocks

These TSX stocks keep it super simple for new investors. You'll need each of these services over the next decade…

Read more »

stock research, analyze data
Dividend Stocks

RRSP Investors: 1 Cheap TSX Dividend Stock to Buy Now and Own for 35 Years

RRSP investors can still find top TSX dividend stocks to buy at discounted prices.

Read more »

A airplane sits on a runway.

Why Did Bombardier (TSX:BBD.B) Stock Surge Over 75% in a Month?

Bombardier (TSX:BBD.B) stock has surged over 75% in last 30 days after strong second-quarter earnings. Is it a buy at…

Read more »

financial freedom sign
Stocks for Beginners

Millennials: Pay Down Debt and Get Rich in Just 1 Decade

Millennials continue to have huge debt on their hands, but they can pay it off and become rich by getting…

Read more »

Cogs turning against each other
Dividend Stocks

2 of the Safest Stocks (With Dividends) to Buy in Canada Now

Here are two of the safest stocks investors in Canada can buy now.

Read more »

Money growing in soil , Business success concept.
Tech Stocks

Got $1,000? Buy These 3 Top Growth Stocks

These three Canadian growth stocks could deliver superior returns over the long run.

Read more »

edit Businessman using calculator next to laptop
Dividend Stocks

2 Top Canadian Value Stocks Worth Buying Right Now

Here's why Alimentation Couche-Tard (TSX:ATD) and Toronto-Dominion Bank (TSX:TD)(NYSE:TD) are two top value stocks to consider right now.

Read more »

A worker wears a hard hat outside a mining operation.
Metals and Mining Stocks

Ivanhoe (TSX:IVN) Had a Record Quarter: Should You Buy the Stock Today?

Ivanhoe Mines Ltd. (TSX:IVN) delivered record profits in its Q2 2022 earnings, which should spur investors to look hard at…

Read more »