2 Canadian Cybersecurity Stocks For 2021 and Beyond

The Canadian cybersecurity stocks we’ve uncovered are expected to benefit from this long-term online protection trend

SmallCapPower | January 14, 2021: Forrester Research estimates that enterprises will spend US$12.6 billion on cloud security tools by 2023, up from $5.6 billion in 2018. As well, many companies have accelerated their digital transformation plans due to COVID-19, as many employees have been forced to work from home. Today we have discovered two Canadian cybersecurity stocks that could be worth holding for the long term.

*Returns are based on closing stock prices as of January 13, 2021

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Absolute Software Corporation (TSX:ABST) – $17.37

Absolute Software is a cybersecurity company that specializes in endpoint security and data risk-management solutions. The company secures your data, all the devices that are part of your network, and all the applications/software your business uses, even when used remotely. During Q1 2021, the company’s revenue rose 11% year over year to $28.5 million, while its total annual recurring revenue increased 13% to $111.7 million. Absolute listed its shares on the Nasdaq in October 2020. ABT stock has a current dividend yield of 1.8%.

  • Average annual return over the past three years: 59%

Evolve Cyber Security Index Fund (TSX:CYBR) – $47.75

While not technically a stock, this Canada-listed ETF invests primarily in shares of companies, located throughout the world, that are involved in the cybersecurity industry through hardware and software development. About 70% of CYBR’s holdings are U.S.-based companies. Evolve Cyber Security’s Top 5 holdings, comprising about 39% of the portfolio, are: Palo Alto Networks (NYSE:PANW) [8.6% of the fund], CrowdStrike Inc. (NASDAQ:CRWD) [7.9%], Okta, Inc. (NASDAQ:OKTA) [7.7%], Zscaler Inc. (NASDAQ:ZS) [7.6%], and Fortinet Inc. (NASDAQ:FTNT) [7.2%].

  • Average annual return over the past three years: 41%

 

Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.

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