Top Cybersecurity Stocks for June 2023

Canadian investors should look to snatch up top cybersecurity stocks like Absolute Software Corp. (TSX:ABST) to start the month of June.

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The S&P/TSX Composite Index was up seven points in early afternoon trading on Monday, June 5. Meanwhile, the S&P/TSX Capped Information Technology Index was up nearly 1% during the same trading session. Today, I want to zero in on three cybersecurity stocks that are worth snatching up and holding for the summer season.

Fortune Business Insights valued the global cybersecurity market at US$153 billion in 2022. The same report projects that this market will grow from US$172 billion in 2023 to US$424 billion in 2030. That would represent a compound annual growth rate (CAGR) of 13%.

This former hardware champion has made a name as a cybersecurity stock

BlackBerry (TSX:BB) is a Waterloo-based company that provides intelligent security software and services to enterprises and governments around the world. Shares of this cybersecurity stock have climbed 12% month over month as of early afternoon trading on June 5. The stock has shot up 55% so far in 2023. Investors who want to see more of its recent performance can play with the interactive price chart below.

Investors can expect to see BlackBerry’s first-quarter (Q1) fiscal 2024 results later this month. In Q4 fiscal 2023, the company reported total revenue of $151 million compared to $185 million in the previous year. It sustained a long-lived asset impairment charge that led it to post a GAAP (generally accepted accounting principles) net loss per share of $0.85. For the full year, BlackBerry posted a GAAP diluted loss per share of $1.35. BlackBerry’s Internet of Things business unit achieved a new record for QNX design wins as the royalty backlog hit $640 million.

This company is geared up for strong revenue growth going forward. BlackBerry had to eat a harsh impairment charge in fiscal 2023, but it should have more flexibility going into the new fiscal year.

Don’t sleep on this cybersecurity stock in 2023

Absolute Software (TSX:ABST) is a Vancouver-based company that develops, markets, and provides software services that support the management and security of computing devices, applications, data, and networks for various organizations. This cybersecurity stock climbed 30% month over month at the time of this writing. That pushed its shares into the black in the year-to-date period.

The company released its Q3 fiscal 2023 earnings on May 15. Absolute Software posted revenue growth of 13% to $58.8 million. Meanwhile, adjusted revenue rose 9% year over year to $59.2 million. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) increased 11% from the previous year to $15.3 million.

Shares of this cybersecurity stock are trading in attractive value territory compared to its industry peers.

Seek out broad exposure with this cybersecurity-focused ETF

Investors who want to own a stable of cybersecurity stocks might want to target Evolve Cybersecurity ETF (TSX:CYBR). This exchange-traded fund (ETF) seeks to replicate the performance of the Solactive Global Cyber Security Index Canadian Dollar Hedged. Shares of this ETF have climbed 11% month over month at the time of this writing. The ETF has increased 14% so far in 2023.

Some of the top holdings in this ETF include Zscaler, a California-based cloud security company, Crowdstrike Holdings, a Texas-based cybersecurity technology company, and other big players like Palo Alto Networks, Fortinet, 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 has positions in and recommends Absolute Software. The Motley Fool recommends CrowdStrike, Fortinet, Okta, Palo Alto Networks, and Zscaler. The Motley Fool has a disclosure policy.

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