Top Down: Innovative Tech - Cyber Security Sub-Industry - Individual Cyber Company Picks
From our weekend analysis, the cyber security sub-industry group is currently among the most bullish of the innovative tech segments (which as a whole is outperforming major indexes at the moment). “A” rated CIBR is an ETF that focuses on companies providing cybersecurity solutions—a segment that has become increasingly crucial as cyber threats grow more sophisticated and frequent.
*IFLY (ETFMG Drone Economy ETF) - This ETF invests in companies that are involved in the drone industry, spanning from drone manufacturers to companies providing drone-related services and software. The data-feed from Google Finance was glitchy at the time I generated this report.
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CIBR, formally known as the First Trust NASDAQ Cybersecurity ETF, is an exchange-traded fund that provides investors with exposure to companies in the cybersecurity industry. You've probably heard how important cybersecurity is becoming, and perhaps even have personal experience with nefarious misuse of personal information or know of friends and family who’ve been hacked? Personally, I recently experienced an attempts at opening fraudulent credit and bank accounts in my name — fortunately, unsuccessful efforts!
Well, CIBR offers a way to invest in that growing need.
Think of it this way: instead of trying to pick the one cybersecurity company that's going to take off, CIBR lets you invest in a whole bunch of them at once. It's like a basket of cybersecurity stocks. They're all involved in different parts of the industry, from making security software to protecting networks.
CIBR's strategy is pretty straightforward. It follows a cybersecurity index, which is just a fancy way of saying it holds companies that are considered representative of the industry. This gives you instant diversification within the cybersecurity world. So, if one company has a rough patch, your whole investment isn't riding on them.
Now, why is cybersecurity so hot right now? Well, everything's going digital, and that means more things for hackers to target. As cyber threats grow, so does the demand for solutions. That's why a lot of people see big growth potential in this sector, and CIBR lets you be a part of it.
The Best of the Best Tickers in the CIBR ETF
By focusing on the best companies within CIBR, we might be able to outperform the ETF itself. CIBR holds a wide range of companies, some of which may be underperforming. Identifying the leaders allows us to concentrate our investment on the most promising players.
Analyzing the individual holdings gives us a more granular view of the cybersecurity landscape. We’ve drilled down to learn about specific companies, their products, competitive advantages, and potential challenges. This deeper understanding has led us to generate the following list of companies we believe have the best combination of fundamentals and technicals at the moment. In addition, we include our two favorites for your further research.
