Millennials: Why You Need to Buy Cybersecurity TSX Stocks Now!

Millennial investors should seek exposure to the cybersecurity space with TSX stocks like BlackBerry Ltd. (TSX:BB)(NYSE:BB) and others.

| More on:
Technology, internet and networking, security concept

Image source: Getty Images

When this decade kicked off, I’d looked at how beginners could seek exposure to the burgeoning cybersecurity space. Millennial investors who are on the hunt for growth, especially in this volatile market, should take a second look at this sector. In January, Help Net Security published a report that was conducted by Astute Analytica. That report projected that the global cybersecurity market would deliver a CAGR of 13% from 2021 through to 2027. Today, I want to look at three TSX stocks that are active in the cybersecurity space. Let’s jump in.

How does BlackBerry’s cybersecurity segment look right now?

BlackBerry (TSX:BB)(NYSE:BB) is a Waterloo-based company that was a legitimate hardware giant in the late 2000s. It has since been pushed into the software space, where it has carved out a presence in automated vehicle software and cybersecurity. Shares of this TSX stock have plunged 27% in 2022 as of close on March 9.

Investors can expect to see BlackBerry’s final batch of fiscal 2022 earnings at the end of this month. In Q3 FY2022, the company reported revenues of $184 million — down from $218 million from the previous year. Meanwhile, BlackBerry delivered net income of $74 million compared to a net loss of $130 million in the third quarter of fiscal 2021. Cybersecurity revenue reached $128 million with a gross margin of 59%.

This TSX stock has climbed out of oversold territory in March, but it is not too late for millennials to buy BlackBerry on the dip.

Millennials shouldn’t overlook this cybersecurity stock in 2022

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 of computing devices, applications, and data for enterprise and public sector organizations. This TSX stock has dropped 3.2% in the year-to-date period. Its shares have plunged 42% from the previous year. Absolute Software is another stock I’d suggest for millennials right now.

The company unveiled its second-quarter fiscal 2022 earnings on February 8. Its revenues rose 64% year over year to $49.0 million. Meanwhile, it posted a net loss of $5.1 million compared to net income of $1.9 million in the second quarter of fiscal 2021. Moreover, adjusted EBITDA rose to $13.8 million over $8 million in the prior year.

Shares of this TSX plunged into oversold territory in the second half of January. It is still trading in favourable territory compared to its industry peers.

Here’s a cybersecurity ETF that millennials can also target

Back in May 2021, I’d discussed the prospect of intensifying cyber warfare. In this environment, millennial investors may want to seek broad exposure to the cybersecurity space. Evolve Cyber Security ETF (TSX:CYBR) invests in equity securities of domestic and international companies that are involved in the cybersecurity industry. Shares of this ETF have dropped 6.7% so far in 2022.

The heaviest weighted TSX stock in this ETF is Magnet Forensics, which develops data analytics software used for digital forensics investigations to public and private sector enterprise. It also offers exposure to cybersecurity giants like Palo Alto Networks, CrowdStrike, and Okta.

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 of the stocks mentioned. The Motley Fool owns and recommends CrowdStrike Holdings, Inc. and Okta. The Motley Fool recommends Absolute Software Corporation and Magnet Forensics Inc.

More on Tech Stocks

Male IT Specialist Holds Laptop and Discusses Work with Female Server Technician. They're Standing in Data Center, Rack Server Cabinet with Cloud Server Icon and Visualization
Tech Stocks

Missed Out on NVIDIA? My Best Growth Stock Pick to Buy and Hold

A TSX growth stock is a top pick and profitable investment choice if you missed out on the ascent of…

Read more »

grow dividends
Tech Stocks

3 Tech Stocks That Could Make You a Millionaire

Given their long-term growth potential, these three tech stocks could deliver oversized returns in the long run.

Read more »

Businessman holding AI cloud
Tech Stocks

Ready to Invest in Artificial Intelligence (AI)? 2 Stocks That Are Solid Bets

These two AI stocks provide investors with strong future opportunities as AI continues to become a part of our everyday…

Read more »

Dice engraved with the words buy and sell
Tech Stocks

Is Lightspeed Stock a Buy, Sell, or Hold?

Down 88% from all-time highs, is Lightspeed stock a good buy in May 2024 and can the TSX tech stock…

Read more »

Overhead shot of young adults using technology at a table
Tech Stocks

Forget NVIDIA: 1 Tech Stock to Buy Instead

Here’s why Shopify (TSX:SHOP) stock could be a smart long-term buy for investors willing to look beyond NVIDIA’s impressive growth.

Read more »

Lights glow in a cityscape at night.
Tech Stocks

2 Artificial Intelligence Stocks to Buy and Hold for the Next Decade

Qualcomm (NASDAQ:QCOM) and another well-placed AI stock could drive substantial capital gains over the next decade. Here's how.

Read more »

Arrowings ascending on a chalkboard
Tech Stocks

This Small-Cap Stock Is up 20% This Year, and Here’s Why it Can Go Even Higher

Here's why investing in small-cap growth stocks such as Sylogist can help you beat broader market returns over time.

Read more »

Double exposure of a businessman and stairs - Business Success Concept
Tech Stocks

Up 51% This Year: This Canadian AI Stock is Still Down 65% From Its Highs – Time to Buy?

Copperleaf Technologies (TSX:CLPF) stock has shown positive momentum as the AI stock attempts a recovery. Can shares rise 180% to…

Read more »