Cybersecurity Big Upside Potential
Cybersecurity as an industry now so more than ever before, is in the spotlight. Cybersecurity Ventures have just released their Q2 2017 Top 500 list. I was very pleased to note that some of my favourite tech stocks made the top 10. As cybercrime continues to fuel an expanding cyber market, the need for protection increases. Access to information as well as safeguarding the information goes hand in hand. One of my favourite Entrepreneurs Robert Herjavec and his company The Herjavec Group clocked in at No 2, this is not yet a publicly traded stock, but once it IPO's I would dive in and buy shares as soon as possible. The company is thriving, management know what they are doing and they have continued growing their business dramatically in the first 2 quarters of 2017. Demand for their outsourced security services during the prolonged labor shortage, is predicted to reach 3.5 million unfilled cybersecurity jobs globally by the year 2021.
Cybersecurity Ventures recently predicted that cybercrime damages will cost the world $6 Trillion annually by 2021, up from $3 trillion last year, that's double over the course of 5 Years. If we look at the growth of the use of the internet and the evolution of the IoT I think this number might even be exceeded.
Global spending on security awareness training for employees is predicted to reach $10 Billion by 2027. However this is currently the most under-spent sector of the cybersecurity industry. The importance of training employees on how to firstly recognize, and then to defend against cyber attacks will be paramount to the survival of companies throughout this rapidly evolving digital jungle we find ourselves in. From the mom & pop shop no longer on the street corner now living on Shopify, to the data giants of the world like, Government Services, Banks, Hospitals, FSP's and Investment Houses.
The upside for investors is this, you are at the forefront of a sectoral explosion, this is and will be the opportunity of the Century. Keep your ears to the ground and get in early, look at companies with solid leadership and vision, look at the products and services and always, always, always keep track record in mind.
I regularly give my top stock picks and today is no different. As of today the 26th of June 2017. I would say get at least 2-3 of these stock on to your portfolio: Raytheon (RTN) - they have just received a 5 Year, $1 Bil contract from the US government and are currently on No3 of the top500 list, IBM and Cisco Systems have decided to collaborate to ensure that their respective Cybersecurity divisions get more market share (both of these companies obviously also give you exposure to Telecoms, Communication Systems, Disruptive Tech etc it is a multifaceted investment choice) Palo Alto Networks (PANW) - Silicon Valley never disappoints, currently 120 spots on the Top500 list are companies that are based in Silicon Valley. I have spoken about Cyberark Security (CYBR) before, a new addition to my buy list is FireEye (FEYE), the stock is still trading under $20 a share, which makes it more easily accessible to a lower capital investor, in the last 6 months has seen growth of 28.34%, which is fantastic. All of the above mentioned holdings are for the medium to long-term.