Cyber Security

Security Investing

The cyber security market is growing, but as with any market, there can still be volatility for individual small-cap cyber security stocks.

Cyber security platforms are seeing investments from major players such as federal governments and multinational corporations, making cyber security stocks an excellent area for investors to consider.
Nonetheless, there are ups and downs in all markets, and small-cap cyber security stocks are particularly affected by minor shifts in business operations and the market at large. Here, the Investing News Network takes a look at two companies with market caps of less than $300 million that had a volatile time on Tuesday. ZixCorp (NASDAQ:ZIXI) saw a 4.4-percent increase in share price, while VirnetX Holding (NYSEMKT:VHC) saw a 6.61-percent drop.

Cyber security stock: ZixCorp

With a market cap of $296.82 million, ZixCorp offers email encryption, data loss prevention and bring-your-own-device security. Some of ZixCorp’s products are Zix Email Encryption, ZixDirectory, ZixGateway, ZixDLP and ZixOne. These products are all supported by the ZixData Centre, which serves organizations in the healthcare, financial services, insurance and government sectors.
On Tuesday, the company’s share price traded as high as $5.47, a 4.4-percent jump from market close on Monday, and a new 52-week high. Zacks has given the company a short-term “buy” rating based on information from four brokerage firms. Two analysts rate the company a “strong buy,” one analyst rates it a “buy” and another recommends a “hold.” Overall, it seems as though ZixCorp may be a good option for investors seeking small-cap cyber security stocks.

Cyber security stock: VirnetX Holding

VirnetX Holding is an internet security software and technology company that owns patented technology for secure communications, including 4G LTE security. The company’s products facilitate secure communications, and offer the security platform required by internet-based applications like instant messaging, video streaming, file transfers and remote desktop applications. VirnetX Holding’s portfolio is centered around securing communications over the internet, with additional applications in the areas of device operating systems and network security for cloud services.
At close of day Tuesday, the company’s share price was sitting at $3.53, down 6.61 percent from market close on Monday. The company, which has a market cap of $188.51 million, has a 52-week trading range of $2.71 to $8.09. Although Tuesday’s share price marked a two-month low, analysts are still keen on this cyber security stock. Zacks ranks the company a two on its five-point scale, signifying that it is a recommended buy for investors.

VirnetX Holding and ZixCorp show that although the cyber security market is moving in a positive direction, there can still be volatility for individual companies. Nonetheless, as the analysts’ ratings mentioned above show, small-cap cyber security stocks still seem like a good bet for interested investors.
 
Securities Disclosure: I, Morag McGreevey, hold no direct investment interest in any company mentioned in this article.

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