Hey 5-Star Trader,
Technology is a huge part of our everyday lives and has perhaps become even more important to us this last year when many people had to make changes due to Covid-19. More people are working from home, playing video games, and shopping online than perhaps ever before. But how are these exchanges of data and personal information being protected?
The answer is cybersecurity, and with the boom of tech in the last year there has been a direct boom of cybersecurity to go along with it. Danger lurks anywhere there is technology, so people will always need cybersecurity. That’s why it is one of the top sectors I’m getting positioned in right now.
What’s on my shortlist…
I like the overall look of the cybersecurity exchange-traded fund, HACK, as well as Cloudfare (NET), and Crowdstrike (CRWD).
NET has been a little more inconsistent on the fundamental side, but because it’s a more recent initial public offering (IPO) I will give it a pass on its earnings per share (EPS).
The reason I like CRWD, in particular, is because we’ve seen quarter-over-quarter growth.
The dependence on technology will become greater over time, so I imagine the health of the cybersecurity sector will grow alongside this dependence. This makes these names great long-term plays.
Interested in trading alongside me? Join me for my Quarterly Profits live trading. We will be trading a wide range of “run into earnings” reports.