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:

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

Canadian dollars in a magnifying glass
Dividend Stocks

3 High-Yield Dividend Stocks That Are Screaming Buys Right Now

Are you looking for great income stocks? Here's a trio of high-yield dividend stocks that pay insane yields right now.

Read more »

A red umbrella stands higher than a crowd of black umbrellas.
Bank Stocks

Best Stock to Buy Right Now: TD Bank or Manulife Financial?

Manulife continues to see momentum in its business and stock price, while TD Bank stock remains down and out.

Read more »

cloud computing
Tech Stocks

3 No-Brainer Tech Stocks to Buy With $1,000 Right Now

These three Canadian tech stocks could be among the best growth opportunities in the market right now.

Read more »

Piggy bank with word TFSA for tax-free savings accounts.
Dividend Stocks

Transform a $5,000 TFSA Into a $50,000 Retirement Nest Egg

The TFSA is a powerful tool that can grow a small investment into a substantial retirement nest egg over time.

Read more »

Canadian Dollars bills
Metals and Mining Stocks

2 Cheap Canadian Stocks Under $20 to Buy This November

Cheap TSX stocks such as Endeavour Silver are trading at an attractive valuation in November 2024.

Read more »

happy woman throws cash
Tech Stocks

3 Growth Stocks That Could Be Long-Term Wealth Creators

These three growth stocks aim to grow their financials at a higher rate than the industry average, thus delivering superior…

Read more »

how to save money
Bank Stocks

This 5.9% Dividend Stock Pays Cash Every Month

First National Financial (TSX:FN) has a 5.9% yielding dividend that is paid out monthly.

Read more »

gift is bigger than the other
Investing

The Best Canadian Stocks to Buy With $5,000

These Canadian companies have solid growth prospects and the ability to deliver profitable growth even at a large scale.

Read more »