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This is going to sound… odd. But hear me out.
Shopping for tires has a lot in common with picking cybersecurity stocks.
Here's how I came up with this line of thought.
My wife needs new tires for her luxury SUV, an Infiniti FX35, and they need to perform in all sorts of weather.
See, we live up in the hills, and she drives to work along narrow roads with dangerous, hairpin curves.
Some mornings, the fog is so thick that the roads get slick. In the rainy season, these roads get even slicker. If she skidded and went over the side, she could easily plunge 200 feet to the bottom of a canyon.
In other words, we are willing to pay extra to get excellent performance in all conditions.
You should take the same approach to investing in the growth field of cybersecurity.
While this is a vital industry, many of the stocks in this sector are choppy and news-driven.
That makes it easy to lose money on those kinds of trades if you get the timing wrong.
But I have uncovered what I believe is a great "all-weather" cybersecurity leader. This is the kind of stock that will keep you on the road to wealth even in the stormiest of conditions.
Plus, it's going to double in 2.4 years.
And I can prove it…
The Trouble with Cyber Stocks
Basically every company with a computer network needs to protect its crucial data against intrusion – against hacking.
The same goes for data centers used in the $175 billion cloud computing field.
That's why the cybersecurity sector is massive and growing fast.
MarketsandMarkets says the industry is now worth $152.7 billion. But by 2023, it will have a value of roughly $248.3 billion.
Trouble is, many cyber stocks move up when the media is filled with stories about headline-grabbing hacks, only to go back down again when the news subsides.
Just last year, there was saturation coverage of the WannaCry ransomware attacks. We also saw intense news accounts of the massive hack of the credit rating agency Equifax Inc. (NYSE: EFX) that compromised 145 million accounts.
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Industry leader Symantec Corp. (Nasdaq: SYMC) rallied hard on the news, gaining 43% from the end of 2016 through Sept. 19, 2017. But between May 10 of this year and when it hit bottom on Aug. 3, it was off by 34%.
In other words, if you bought on the buzz, you would have seen the value of your holdings drop by more than a third. Plus, before the decline, the stock looked like a roller coaster ride.
About the Author
Michael A. Robinson is one of the top financial analysts working today. His book "Overdrawn: The Bailout of American Savings" was a prescient look at the anatomy of the nation's S&L crisis, long before the word "bailout" became part of our daily lexicon. He's a Pulitzer Prize-nominated writer and reporter, lauded by the Columbia Journalism Review for his aggressive style. His 30-year track record as a leading tech analyst has garnered him rave reviews, too. Today he is the editor of the monthly tech investing newsletter Nova-X Report as well as Radical Technology Profits, where he covers truly radical technologies – ones that have the power to sweep across the globe and change the very fabric of our lives – and profit opportunities they give rise to. He also explores "what's next" in the tech investing world at Strategic Tech Investor.
Tags: tech stocks