UKRAINE – 2021/05/18: In this photo illustration the Okta logo of an IT service management company … [+]
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Our theme of Cyber Security Stocks has outperformed considerably, rising by about 51% year to date, compared to the S&P 500 which remains up by about 26% over the same period. There has been rising interest in cybersecurity following the Covid-19 pandemic, as companies looked to secure their increasingly distributed operations with more employees working from home. Moreover, multiple high-profile cyber attacks in recent months have also made companies prioritize their security spending. For perspective, the companies in our theme grew revenue at a compounded annual rate of around 34% over the last three years, compared to the S&P 500 companies, which grew revenue at under 5% each year over the same period.
That said, there are some risks. Most of the stocks in our theme are high-multiple names, and prices can be volatile and highly sensitive to quarterly growth rates. Moreover, with…
