5 Top NASDAQ Security Stocks Year-to-Date

According to CB Insights, cybersecurity spending reached US$114 billion in 2018.

Reports of data breaches and security threats have marched onward during the first half of 2019. In April, 540 million Facebook (NASDAQ:FB) user records were found exposed in two cloud servers. Security company UpGuard discovered this error and made a public announcement on April 3.

What’s more, the National Cyber Security Center reported that two municipalities in Florida paid US$1.1 million to hackers after ransomware incidents in late June. Earlier that month, Tripwire released a report as part of a study that surveyed 340 security professionals; it shows that 27 percent of global organizations have experienced a breach at one point due to an unpatched vulnerability.

In the list below, the Investing News Network highlights the top five security companies on the NASDAQ year-to-date. Numbers were obtained on July 2, 2019 from Investing.com, and all companies listed had market caps between US$50 million and US$500 million at that time.

1. Wrap Technologies (NASDAQ:WRTC)

Current share price: US$6.11; market cap: US$181 million; year-to-date gain: 92.7 percent

Headquartered in Las Vegas, Wrap Technologies develops security technology for the law enforcement sector. Its BolaWrap is a remote restraint device designed to reach 10 to 25 feet in order to entangle its target. The product is distinct from its competitors in that it does not inflict pain on the target.

In June, Wrap Technologies announced that it would be joining the Russell 2000 and Russell 3000 indexes effective July 1. Earlier that month, Wrap Technologies reported a US$12.5 million investing round, with funds to go towards training, engineering and distribution for BolaWrap.

2. Red Violet (NASDAQ:RDVT)

Current share price: US$12.11; market cap: US$124.57 million; year-to-date gain: 78.34 percent

Red Violet is a software company that was founded in 2017. It runs a number of brands, including Forewarn, which applies data intelligence to search criminal history, verify assets and complete other due diligence processes. Using an individual’s phone number, Forewarn can identify former bankruptcies, financial risks and property ownership details. Forewarn is mainly designed for the real estate industry.

Red Violet announced its first quarter financial results in May, reporting US$5.7 million in revenue, up 72 percent year-over-year. It further reported that Forewarn had added 13,000 users since the same time period in 2018, reaching 15,400 total users as of March 31, 2019.

3. CSPi (NASDAQ:CSPI)

Current share price: US$14.51; market cap: US$60.04 million; year-to-date gain: 51.89 percent

Founded in 1968, CSPi is a cybersecurity company that is principally engaged in creating network security products and consulting. The company’s solutions cast a wide net, and it offers over 15 different listed services. Earlier this year, CSPi received an industry award for its managed product services.

In June, CSPi launched a cybersecurity solution in partnership with Seceon designed to tackle challenges related to commercial internet of things devices. The two companies will develop security services to protect vulnerabilities in endpoints that could include medical devices or power grids.

4. Identiv (NASDAQ:INVE)

Current share price: US$.4.90; market cap: US$80.92 million; year-to-date gain: 40.58 percent

Identiv is a security company that has over 5,000 customers and 400 US federal government partners. The company offers physical identification services to over 100,000 doors through its personal identity verification systems and video intelligence solutions, among others.

In May, the company released its first quarter financial report. Revenue increased by 18 percent year-over-year to US$19.5 million, while the company reported US$1.2 million in non-GAAP adjusted EBITDA; that is up by 500 percent compared to the same time period last year. Identiv further highlighted several product and platform launches in the first quarter, including a US$6 million contract that is scheduled to begin in the second quarter of 2019.

5. Shotspotter (NASDAQ:SSTI)

Current share price: US$43.69; market cap: US$494.61 million; year-to-date gain: 39.06 percent

Shotspotter is primarily engaged in firearms technology and analysis, with its solutions deployed in over 100 municipalities. Its technology is designed for law enforcement officials to both detect gunshots using its ShotSpotter Flex product and apply artificial intelligence to patrol missions through its ShotSpotter Missions product.

In April, Shotspotter introduced its Investigative Lead Summary (ILS) service, a tool that collects information such as evidence, location data and gunshot data. The police department in Little Rock, Arkansas has been testing the ILS and noted that it better assists with interviewing witnesses and suspects, providing additional insight to the investigative process.

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Securities Disclosure: I, Dorothy Neufeld, hold no direct investment interest in any company mentioned in this article.