Are These The Best Home Security Stocks To Buy Right Now?
Security has been a major concern for smart homeowners, as most smart home devices are prone to hackers’ attacks. With the rising unemployment rate across the globe, the demand for home security tools is more pronounced than ever. This led investors on the hunt for the best home security stocks to buy. Not only are we threatened by the novel coronavirus, the possibilities of theft or burglary are also heightened amid the pandemic. To some, if the coronavirus doesn’t kill them, hunger will. The desperation of those in unfortunate circumstances could increase crime rates. After all, cash handouts aren’t sufficient for some. Therefore, there could be an accelerated demand in home security devices, potentially lifting certain home security stocks.
Just this week, Alphabet (GOOGL Stock Report) acquired a 6.6% stake in ADT Inc. (ADT Stock Report). The news sent ADT stock 80% higher during the intra-day trading on Monday. With the scalability and technology from Google, this poses a threat to certain security stocks too. Alarm.com (ALRM Stock Report) and Resideo Technologies Inc. slumped 17% and 22% respectively. The ADT/Google partnership is sending signals to its rivals that the partnership is likely to emerge as a leader in the long-run. And when investors feel that there are threats to the company that they are currently investing in, e.g. Alarm.com, they exit their positions before the stocks plunge further.
The global home security market was estimated to be worth USD 45.58 billion in 2018. It could grow at a CAGR of 10.40% to reach USD 74.75 billion by 2023. Given the scale of the market and considering the accelerated shifts in home security needs, would investing in home security stocks be a good move? If yes, are these home security stocks on your watchlist?
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Top Home Security Stocks To Buy Right Now [Or Sell]: ADT Inc.
Home security company ADT saw its stock rose sharply on Monday. This is after the company announced a $450 million investment from Google. The two companies plan to create smart home software and services using Google’s Nest hardware and ADT’s smart home and security offerings. To execute this plan, both companies have committed $150 million to the partnership.
The funds will cover marketing, product development, technology, and employee training. With this strategic partnership, there’s a great chance the new security offering would capture a bigger market share.
“We are thrilled to partner with Google to provide the smart home market with a strong, differentiated product and service offering that integrates the best technology, hardware, and smart home security expertise from our two brands,” ADT CEO Jim DeVries said in a statement. “Google’s partnership and financial investment in ADT underscores the depth of our joint commitment to the smart home and security markets.”
Top Home Security Stocks To Buy Right Now [Or Sell]: CrowdStrike Holdings
Wait a minute, isn’t CrowdStrike Holdings (CRWD Stock Report) a cybersecurity stock? The thing is, some people are more exposed to cybersecurity risks than physical security risks. The stay-at-home measures may have increased the odds of facing malicious attacks online. Be it in work or entertainment online, such services would protect consumers from malicious hacks and prevent threats in the digital space. The company broke out during the V-shaped stock market recovery in March 2020. The stock did so again after its earnings report on June 2. The company has $686 million in annual recurring revenue, up 88% year-on-year. Subscription revenue grew 91% on 6,261 subscription customers.
CEO George Kurtz said on the conference call that even if people return to the workplace, a hybrid model can sustain the company’s growth. Krutz said, “I think ultimately a more into the work from anywhere and there will be a hybrid model of people going back to work, but I think we all know that we are not going to continue in the same way that we had pre-COVID.”
Crowdstrike enjoys steady recurring revenues because of its distinct offerings compared to its industry peers. While its rivals require on-premise inflexibility and are needlessly complex, Crowdstrike offers a cloud based solution to effectively distribute its solution to neutralize threats. Considering its more “superior” offerings and steady revenue stream, is this a top cybersecurity stock to buy and hold?