Cybersecurity stocks have been consolidating in the last 18 months. As usual, investors give up after such a long time, given amazing strength in other tech sectors like social media, cloud computing, and, until recently, blockchain stocks. As it always goes once most investors have left the arena a new leg higher starts which is what is happening now in cybersecurity. We identified four cybersecurity stocks which are worth considering to buy in 2018.

Why cybersecurity matters

Cybercrime is the dreaded next generation crime that is done electronically via computer, internet and network. It is considered elusive because of its difficult to apprehend the masterminds. By the time it is discovered, some kind of losses – especially in the monetary form have happened.

As far as protecting company’s data is concern nothing beats the wisdom “better safe than sorry”. As business gets more competitive and tougher, any first-hand information about potential customers and competitors can mean securing crucial deals with better propositions. Although globalization and the internet bring about greater business connectivity internationally it also implies that companies are more susceptible to data theft. Various ways of stealing company data include hacking, skimming, phishing emails, etc.

Company data that is hacked such as pricing, business proposals, intellectual properties and, if not the most important piece, customer data (privacy) could result in substantial losses that ultimately ruin profitability. In the year 2017 alone the damage due to ransomware was estimated to exceed five billion dollars. The process of engaging cybersecurity companies to install anti-virus, encryption, secure remote access and firewall will be costly but not as costly compared to losing company data. With more companies including small and medium enterprises allocating money to have this preventive measure, we are confident that cybersecurity industry could do well.