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.
