Cybersecurity Stocks Are the Best to Buy Amid Russia-Ukraine Crisis

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See; You are smart and know that market crashes create great long-term buying opportunities. So you’ve probably been looking for stocks to buy right now. And I have one simple suggestion to make your search easier: Buy cybersecurity stocks.

Like any other market, cybersecurity stocks have been crashing over the past few months. That ETFMG Prime Cyber ​​​​​Security ETF (NYSEARCA:HACK) has dropped about 17% from recent highs, marking the second-biggest sell-off in five years — and its biggest sell-off apart from the March 2020 Covid-19 crash.

But the underlying reality is that cybersecurity stocks shouldn’t drop massively. Instead, they should to the top big. The geopolitical turmoil sparked by the Russo-Ukrainian war will generate a huge tug for cybersecurity stocks over the coming months.

Investment implications? It’s time to buy this stock decline. Both in the near and long term, they must win big!

The Russia-Ukraine crisis has emphasized a lot about the world — the need for energy independence, the importance of sanctions. And it became clear that Vladimir Putin was completely insane.

It is also emphasized that modern war is virtual war.

That is, war does not only occur on the battlefield between humans. It also fights digitally in the cloud and between computers. Indeed, the Russo-Ukrainian conflict, to date, has been characterized by relentless cyber warfare.

Catalyst for Cybersecurity Boom

Groups with pseudonyms Anonymous has hacked one of Vladimir Putin’s yachts, Russian State Media, Russian internet service providers and TV networks, various EV chargers in Russia, Belarusian banks and railways, and more. They have done everything from leaking important information to providing information and playing the Ukrainian national anthem on state-owned TV stations in Russia.

Meanwhile, Russia has retaliated, hacking Ukrainian cameras and taking certain Ukrainian websites offline.

At the same time, Nvidia (NASDAQ:NVDA) and Toyota (NYSE:TM) were both hacked over the past week in events purportedly unrelated to Eastern Europe. But let’s be honest. How could they not? The US and Japan both imposed significant sanctions on Russia last week. And behind them, America’s biggest chipmaker and Japan’s biggest automaker were hacked anonymously.

Cyber ​​war has startedonly increases from here.

And because those heavy sanctions have been imposed on Russia, Putin wants to retaliate against the US and its allies. However, their routes were limited. Their options are:

Economical — but they can’t hurt us like that because Russia’s economy is a drop in the ocean compared to America’s.

military — but they can’t really hurt us either because Russia’s military is also small compared to the combined strength of the US and its allies.

cyberspace – Where are they can hurt us because cyber warfare is something Russia has developed with quite a reputation for.

Therefore, Russia is likely to expand this conflict into a global cyberwar. And in this case, the US, its allied countries, and all the big companies in those countries will spend a lot of money to cyber security in the coming months.

The investment implication here is to buy cybersecurity stocks today before this cyber “gold rush”.

Potential Long-Term Rise in Cybersecurity Stocks

Opportunities in today’s cybersecurity stocks are further enhanced by the fact that these stocks will not only benefit from a short-term spike in spending. Instead, they would profit from what would likely be decade of great growth throughout the industry.

According to Gartner, worldwide spending on cybersecurity solutions has grown by ~9% per year since 2014. While that may not be very impressive, just consider three things:

1. Cybersecurity spending accounts for only 3.5% of the IT budget in 2021, a rather small portion, which implies a large room for expansion of the budget share in the coming years.
2. The growth in cybersecurity spending has consistently increased over the past few years, as the need for cybersecurity solutions has become increasingly important. Expenditure grew only 5% in 2015. In 2021, it grew by more than 12% and is expected to grow another 12% in 2022.
3. The importance of cybersecurity solutions will continue to increase as we enter an increasingly digital-centric society. And amid this shift, the growth in cyber security spending should also continue to accelerate.

For that reason, our analysis shows that we are in the first half of a multi-decade breakthrough in the cybersecurity industry.

We believe that spending will grow to about 6% of IT budgets by 2030. This will account for 8% of IT budgets by 2040, reinforcing what we see as 11% annual growth throughout the 2020s — and 8% growth through the year. the 2030s.

In other words, the industry is just getting started.

Big Incoming Rebound

You shouldn’t see cybersecurity stocks as a good option to buy now and sell in a few months for a small profit. You should see it as a good stock to buy now and sell in 5+ years for a 100% plus profit.

That’s the core investment strategy in our flagship investment research advisor Innovation Investor. We bought the stock at an early stage of extraordinary growth, targeting a multi-hundred percent return over the long term.

And that’s why, in that piece of advice, we’ve just dived into every publicly traded cybersecurity company on the market.

History is clear on the fact that market crashes create excellent buying opportunities — especially in high-quality assets. And that’s why we firmly believe that the best thing you can do in this volatile market is buy the downside.

And our favorite asset on this downturn? Cybersecurity stocks.

With it, you get it all — long-term winners, huge revenue growth, broad competitive trenches, big margins, a scalable software business model. The shares are down 30%, 40% and even 50% in some cases. Value has collapsed to record lows. And with the current Eastern European conflict, there is a huge demand catalyst unfolding right before our eyes.

That’s the cocktail for a big long-term rebound in cybersecurity stocks.

In our research advisory this week, we publish the results of our deep dives in a unique report only available to customers. And that will include our top cybersecurity stocks to buy right now.

Trust me. This is a report you should not miss. These stocks can help improve and protect your portfolio for years to come.

Get access to reports.

As of the date of publication, Luke Lango does not hold (either directly or indirectly) any position in the securities referred to in this article.

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