Cyberthreats are increasingly hurting businesses in today’s digital world. According to a McKinsey research report published less than a year ago, annual damage from cyberattacks is expected to cross the US$10 trillion mark by 2025, which would reflect a 300% jump in 10 years. Such an exponential increase in cybercrime is one of the key reasons why the demand for cybersecurity software solutions is growing rapidly across the globe, especially in the post-pandemic era. Given that, it could be a good idea for long-term investors to consider adding some quality Canadian cybersecurity stocks to their portfolios right now.
In this article, I’ll highlight two of the best cybersecurity stocks you can buy on the TSX in September 2023.
BlackBerry stock
BlackBerry (TSX: BB) is arguably the best cybersecurity stock to buy in Canada today. This Waterloo-headquartered company has expertise in providing a variety of cybersecurity software solutions to businesses across industries. BB currently has a market cap of $4.4 billion, as its stock price trades at $7.62 after rallying by nearly 73% in 2023 so far.
The Canadian tech firm’s cybersecurity offerings include an artificial intelligence-based cybersecurity solution called Cylance, a unified endpoint management solution called BlackBerry UEM, and a critical event management software known as BlackBerry AtHoc. Besides that, its BlackBerry SecuSUITE allows government organizations and officials globally to secure their official voice and text communications against unauthorized access or hacking.
While BlackBerry’s cybersecurity business has seen a downturn in recent quarters, consistently growing global demand for reliable enterprise cybersecurity solutions brightens its long-term growth outlook. In addition, the company’s growing focus on the Internet of Things segment is also expected to help its financials grow exponentially in the years to come. Keeping these positive fundamental factors in mind, BB stock could still be an attractive Canadian cybersecurity stock to buy in September to hold for the long term despite its big year-to-date gains.
Open Text stock
Open Text (TSX: OTEX) is another stock you can consider buying in September 2023 if you are seeking to benefit from the expected solid growth in the demand for cybersecurity solutions in the long run. This Canadian company primarily focuses on providing information management solutions to businesses. It currently has $14.9 billion in market capitalization as its stock trades at $ 55.04 per share with 37.2% year-to-date gains.
Besides its digital supply chain solutions and content services, Open Text is gradually expanding its cybersecurity offerings. Its security solutions help organizations find required hidden information to conduct investigations of potential threats and manage vulnerabilities.
In its fiscal year 2023 (ended in June), Open Text’s financial growth trend improved, as its annual revenue surged by 28.4% year over year to a record US$4.5 billion. More importantly, annual recurring revenues made up nearly 81% of its total revenue for the fiscal year. Despite major investments in cloud, artificial intelligence, and security areas in the last fiscal year, its adjusted earnings rose 2.2% last fiscal year to US$3.29 per share, exceeding analysts’ estimates.
As it continues to strengthen its security portfolio, you can expect Open Text’s financial growth trend to improve further in the long term, making this TSX stock attractive to buy today.
