Cybersecurity stocks are topping the watchlist of investors. With President Biden’s recent warnings to firms about possible cyberattacks on US businesses and government office, western companies are beefing up their security. In an effort to protect their teams, operations, and assets, companies are looking for the best and brightest cybersecurity and IT providers. As a result, small cybersecurity and IT firms are finding great financial success from being part of the solution.
Given their ability to customize solutions and be more agile in their operations, smaller IT firms are being called on in a moment of great need and threat. Smaller firms are bringing unique products, personalized services, and proprietary technology to a marketplace flooded with the same old solutions. Small firms, like GlobeX Data, Ltd. (OTCMTKS: SWISF)—a data management and secure communications provider based in Toronto—are ushering in a new generation and class of cybersecurity.
These smaller firms are potential growth stocks for investors who are in tune with the cybersecurity and IT market. With smaller stock price and market cap, even a small investment can create a strong return as these firms focus on events like:
· Announcing new intellectual property
· Landing well-known clients
· Creating strong partnerships with other industry heavyweights
· Acquiring other small firms and their IP, operations, and market
· Positioning themselves for acquisition by a larger firm
This article highlights five cybersecurity penny stocks investors may want to add to their watchlists for these and similar reasons.
GlobeX Data, Ltd. (OTCMKTS: SWISF)
As previously mentioned, GlobeX Data (OTCMKTS: SWISF) focuses on the data management and secure communication sector of cybersecurity. The Sekur product from Globex serves business leaders in the C-suite and board member level, as well as high net worth individuals (HNWI) whose information and identity are incredibly sensitive to privacy and security.
Through its Sekur brand, SWISF provides 100% end-to-end encryption in its multi-layered2048-bit encrypted tunnel via its HeliX technology. SWISF uses this technology to guard against internal and external threats in communications, file sharing, and data storage.
By routing 100% of its clients’ server data through Switzerland, it is able to provide protection for enterprise-wide communications and data management.
Currently trading at $0.22 per share, SWISF has seen growth even in recent day. If the trailing twelve months revenue of $144k is any indication, Globex Data Group (OTCMKTS: SWISF) could see a strong 2022. This TTM is up over more than 500% from the previous year and is just another reason we think SWISF would be right at home on any investor’s watchlist.
SuperCom (NASDAQ: SPCB)
Providing “traditional and digital identity solutions, advanced safety, identification, and security products and solutions to governments as well as private and public organizations around the world” SuperCom (NASDAQ: SPCB) is another cybersecurity penny stock that may be attractive to investors. SuperCom focuses on e-identity, the internet of things (IoT), online and digital payments, land and GIS services, as well as other cybersecurity aspects.
Headquartered in Israel, SPCB has been a global leader in cybersecurity since 1988 and was recently awarded Croatia’s first national electronic monitoring program.
With help from the market’s interest in cybersecurity stock and product upgrades, it has bounced back from an earlier selloff. Good news could be on the horizon for SPCB investors as the firm plans to announce full 2021 financial results later this week.
Investors can currently purchase shares of SuperCom (NASDAQ: SPCB) for $0.61 a piece, roughly a dime off its 2022 high.
Safe-T Group (NASDAQ: SFET)
Another Isarel-based cybersecurity firm, Safe-T Group (NASDAQ: SFET), provides firms and governments with “secure zero trust application and network access.” On the heels of an impressive 2021, which saw a 110% increase in revenues, SFET is poised to continue to make waves in the cybersecurity market. The $10.3 million in revenue SFET raked in during 2021 came from, what CEO Shachar Daniel referred to as “organic growth” in its privacy products and the firm’s ability to break into the consumer market.
Perhaps its most popular product, Zone Zero, allows firms peace of mind. According to the firm’s website, “ZoneZero® enables organizations to implement identity-based security and add per-application secondary multi-factor authentication (MFA) for all types of users.”
With a per share price of $0.89, Safe-T Group (SFET) is an interesting addition to our watchlist.
Blackberry (NYSE: BB)
Easily the most well-known of the list, Blackberry—yes, that Blackberry—is also the highest priced cybersecurity penny stock on our list. At $7.83 per share, Blackberry could still provide a return for those investors who have watched Blackberry’s pivot from their bygone days of mobile hardware and technology to its current status as a leader in cybersecurity, automotive software, and data management.
In an article published earlier this month, Blackberry’s rise, fall, pivot, and renaissance was chronicled. While still facing struggles, Blackberry has found a way to keep its status as a player in the tech market. Even the Niagara region has partnered with Blackberry to be its critical event management platform, which will keep residents in the Niagara region safe.
CSP Inc (OTCMKTS: CSPI)
Massachusetts-based cybersecurity firm, CSP Inc (OTCMKTS: CSPI) develops and markets “information technology integration solutions and cluster computer systems.” By providing high performance products and technology solutions, CSP has remained a player for more than 50 years.
CSPI has been able to stay at the top of its field by providing customers with custom services (high performance products) and technology solutions, which include being a reseller of top-tier cybersecurity and IT hardware and software.
Its ARIA cybersecurity brand recently announced its zero-trust adoption via its Transmit-Only SmartNIC.
Priced at $7.66, CSPI is on the higher end of the cybersecurity penny stocks, but could still be a bargain for the right buyer.
This article is part of a sponsored investor education program.