2 TSX cybersecurity stocks for 2022
As cybersecurity becomes a crucial part of carrying out online business in these pandemic-inflicted times, companies providing such solutions, like Absolute Software (TSX: ABST) and Magnet Forensics (TSX: MAGT), could be one to watch.
Cybersecurity is also not something that stops at protecting online businesses. In today’s day and age, where online presence and information technology play a crucial role, even governments, militaries and healthcare facilities are significantly reliant on solutions that safeguard data.
So, let’s see how two of these Canadian cybersecurity stocks are doing.
Absolute Software Corporation (TSX: ABST)
Absolute Software Corporation develops an endpoint platform based on the cloud that provides computing devices management control and security solutions.
The Vancouver-based cybersecurity company reported a 65 per cent increase year-over-year (YoY) in its revenue to US$ 49 million in the second quarter of fiscal 2022. However, the small-cap company incurred US$ 5.1 million as a net loss in the latest quarter against a net income of US$ 1.9 million a year ago.
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The US$ 596-million market cap firm’s quarterly dividend payment of 0.08 apiece is set to be paid on February 25.
Stocks of Absolute Software closed at US$ 11.79 apiece on Friday, February 18, noting a slump of over three per cent. But ABST stock has risen by almost 29 per cent from its 52-week low of US$ 9.16 apiece (January 24).
Magnet Forensics Inc (TSX: MAGT)
Magnet Forensics offers digital investigation software solutions for computers, mobiles, and internet of things (IoT) devices.
The cybersecurity firm saw its top line climb 44 per cent YoY to US$ 17.8 million in the third quarter of fiscal 2021. Its Q3 net income also grew by nine per cent YoY to US$ 2.2 million.
Stocks of Magnet Forensics closed at US$ 25.37 apiece on Friday. Magnet stock gained by over nine per cent in the past nine months.
Bottomline
Even as strict lockdown protocols subside, consumers continue to rely on online services. Hence, companies and institutions who offer such services continue to require cybersecurity.
If this demand continues to grow, it could boost the operations of companies offering cybersecurity solutions further.
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Gloss