5 top TSX cybersecurity stocks to buy as Canada tables bill

Be the First to Comment Read

5 top TSX cybersecurity stocks to buy as Canada tables bill

Canada cybersecurity stocks
Image source: © Adiruch | Megapixl.com

Highlights

  • In Canada, a bill called Act Respecting Cyber Security was introduced on June 14.
  • Cybersecurity is essential as the world relies on computers, cloud services and mobile phones.
  • Canada has a variety of cybersecurity stocks to offer to retail investors.

Companies will be required to share information on the cyber threat to eliminate any product or service that poses a security concern in Canada. Telecommunications, transportation, finance, and energy are the four federally regulated infrastructure sectors.

Also Read: 5 TSX uranium stocks to buy as demand for Canada supplies rise

Industry Minister Francois-Philippe Champagne and Public Safety Minister Marco Mendicino introduced a bill called Act Respecting Cyber Security on June 14. The bill is applicable to the four federally regulated infrastructure sectors.

The bill attempts to address cyber dangers that governments worldwide are seeing as more individuals work remotely since the pandemic, leading to an increase in cyber-attacks.

Cybersecurity has always remained important, and with the new bill, companies are expected to focus more on this aspect. Hence, we are looking at five cybersecurity stocks in Canada that the investors could consider for the long-term:

Magnet Forensics Inc. (TSX:MAGT)

It is a software company that specialises in digital investigation. It collects, analyses, reports on, and organises digital evidence from various devices and the cloud.

Recently, Magnet Forensics acquired a cybersecurity company called Comae Technologies as it looks to expand its business operations. Meanwhile, the MAGT stock grew about two per cent on Tuesday and closed at C$ 15.7 per share.

Canada cybersecurity

The importance of cybersecurity was reflected by the revenue increase of Magnet Forensics in the first quarter of this year. In Q1 2022, the technology company's revenue jumped 35 per cent year-over-year (YoY) to US$ 19.8 million.

Absolute Software Corporation (TSX:ABST)

It develops, markets, and sells a control platform to secure and manage computer devices. Absolute Software's primary source of revenue is the United States, but it also has operations in Canada and other countries.

The company is expanding its presence through multiple partnerships and has won awards on various forums. In Q3 2022, Absolute's revenue was US$ 52 million, representing an increase of 69 per cent YoY.

Notably, the revenue from cloud and subscription services increased to US$ 49.5 million in Q3 2022 from US$ 28.6 million in Q3 2021.

VIQ Solutions Inc. (TSX:VQS)

It operates as a technology and service platform provider to capture digital evidence. Additionally, VIQ Solutions provides recording and transcription services.

In February, VIQ Solutions strengthened its technology portfolio as it was awarded a patent for artificial intelligence innovation. Meanwhile, the company said it was on track to achieve its goals in 2022.

In Q1 2022, VIQ's revenue was US$ 11.5 million, up from US$ 8.3 million in Q1 2021. Meanwhile, the gross profit was US$ 5.5 million in the first quarter of this year.

Open Text Corporation (TSX:OTEX)

The technology company allows users to retrieve, archive, and search unstructured information. Open Text achieved record revenues in Q3 2022, reflecting a solid market share and cloud-focused organic growth.

The company's total revenues increased 5.9 per cent YoY to US$ 882.3 million in Q3 2022, and its operating cash flows were US$ 323.6 million.

At market close on June 14, the OTEX stock closed at C$ 48.28 per share.

BlackBerry Limited (TSX:BB)

BlackBerry, previously the world's top smartphone maker, is now a software company with the declared purpose of providing organisations with end-to-end secure communication.

The company is among the top cybersecurity services providers worldwide. In the fourth quarter of fiscal 2022, BlackBerry's total revenue was US$ 185 million, of which US$ 122 million was from the cybersecurity segment.

On Tuesday, the BB stock climbed one per cent to close at C$ 6.68 per share.

Also Read: DOL & FTS: 2 TSX stocks to buy as World Bank warns of stagflation

Please note, the above content constitutes a very preliminary observation or view based on digital trends and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.

Disclaimer

Speak your Mind

Featured Articles

We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK