CSCO - HACK: A Diversified Basket Of Cyber-Related Stocks Attractive Amid The Correction
2024-06-07 05:40:37 ET
Summary
- Cybersecurity stocks have not performed well recently, but I see a GARP opportunity in the HACK's historical drawdowns.
- Cyber insurance spending is expected to continue rising at a high annual pace, reaching $23.6 billion by the end of next year, providing a bullish fundamental backdrop.
- HACK is a somewhat small ETF with concentrated holdings, and its technical chart is encouraging, with the current pullback offering a solid buying opportunity.
- I outline key price levels to monitor.
Cybersecurity was among the most popular investment themes last year and into early 2024. The group, led by CrowdStrike (CRWD) which just reported a solid quarterly earnings report, is seen as a space that's less immune to cyclical economic swings considering that enterprises are, now more than ever, susceptible to the threat of digital attacks. Bank of America Global Research noted last month that cyber insurance spending continues to rise at a high 25% annual pace, potentially reaching $23.6 billion by the end of next year....
HACK: A Diversified Basket Of Cyber-Related Stocks, Attractive Amid The Correction