Cybersecurity spending reached US$114 billion in 2018, according to CB Insights. Here are the top NASDAQ security stocks of 2019.
Security threats continue to grow, with no signs of abating. CB Insights reports that, in the first quarter of 2019, 30 companies experienced significant data breaches.
Because of this, a number of security companies are developing advanced products and software to counter a wide range of these threats. Here the Investing News Network highlights the top five security companies on the NASDAQ year-to-date.
The list below was obtained on April 10, 2019, from CapitalCube, and all information was current at that time. All companies considered had market caps between US$50 million and US$500 million at that date.
1. Identiv (NASDAQ:INVE)
Current share price: US$4.75; market cap: US$78.68 million; year-to-date gain: 33.33 percent
Identiv provides security products and services to 400 US federal government partners and over 5,000 customers globally. Its products extend from identification cards and real-time video security solutions to end-to-end security services for its customers.
Identiv released its fourth quarter and 2018 year-end financial results in March. The company reported its 10th consecutive quarter with positive non-GAAP adjusted earnings before interest, tax, depreciation and amortization. Fiscal year-end revenue growth was 30 percent higher than the previous year, while its GAAP net loss decreased to US$4.7 million, almost 50 percent less than the previous year.
2. Napco Security Technologies (NASDAQ:NSSC)
Current share price: US$20.99; market cap: US$386.02 million; year-to-date gain: 31.17 percent
Napco Security Technologies is a manufacturing company that builds security products and technologies for access control, video, door locking systems, fire and intrusion.
3. Zix (NASDAQ:ZIXI)
Current share price: US$7.34; market cap: US$398.1 million; year-to-date gain: 26.53 percent
Zix provides email security solutions to over 21,000 businesses. Headquartered in Dallas, Texas, Zix offers a host of email security services from ZixEncrypt email encryption to ZixProtect, which significantly reduces email threats.
Zix closed the acquisition of AppRiver in the first quarter for US$275 million in cash. AppRiver, founded in 2002, provides cloud-based cybersecurity solutions.
Shortly after the acquisition closed, Zix released its fourth quarter financial results, reporting a 10 percent increase in revenue over the quarter, with net income increasing to US$9.2 million. Cash flow from operations increased over the quarter, rising at a 16 percent clip to US$4.9 million.
4. Rada Electronic Industries (NASDAQ:RADA)
Current share price: US$3.26; market cap: US$121.81 million; year-to-date gain: 25.19 percent
With headquarters in Netanya, Israel, Rada Electronic Industries is a defense technology company that develops tactical radars, avionics and navigation systems. Rada Electronics’ customers include Boeing (NYSE:BA), Lockheed Martin (NYSE:LMT) and Israel Aerospace Industries.
In early March, the company announced that it had received US$8 million in new orders, the majority of which were for air defense systems and radars.
5. Finjan Holdings (NASDAQ:FNJN)
Current share price: US$3.04; market cap: US$83.89 million; year-to-date gain: 16.33 percent
With over 20 years in business, Finjan Holdings is a cybersecurity company that prevents threats from happening in real time. Its services span from IP licensing to cybersecurity consulting and mobile applications. Finjan also owns a number of patents created by its research and development team.
In January, the company reported that it reached over 1 million downloads of its VPN InvinciBull. The award-winning VPN automatically activates to allow users to stream content securely and anonymously.
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Securities Disclosure: I, Dorothy Neufeld, hold no direct investment interest in any company mentioned in this article.