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The Russian Conflict Is Boosting Cybersecurity Stocks

Global tensions with Russia have continued to escalate.

Countries around the world are placing sanctions on Russia that could break its financial system.

Several Russian banks have been removed from the SWIFT banking system. This will disrupt Russia’s ability to trade and make payments.

In addition, there’s a push to freeze Russian central bank assets held abroad. This will limit Russia’s access to capital.

As a result, the Russian ruble lost half its value at one point.

This is bad for Russia. But it’s creating a HUGE opportunity in cybersecurity stocks.

Prepare for More Russian Cyberattacks

U.S. officials expect Russia to retaliate by ramping up its cyberwarfare.

We’ve already seen Russia’s cyberattacks several times in the past.

In 2020, Russians hacked a major IT company, SolarWinds.

They planted malicious code that was pushed to SolarWinds’ customers.

This allowed Russia to spy on them and obtain sensitive data.

In 2021, Russians hacked Colonial Pipeline. This shut down one of the largest U.S. fuel pipelines for nearly a week.

The Colonial Pipeline delivers 45% of the East Coast’s gas, so 11 states saw shortages.

Gas stations and Americans were left without gas.

And Russia is likely looking to deploy cyberattacks again.

I Expect Spending on Cybersecurity Will Skyrocket

Russia already hacked the Ukraine’s government last week.

Companies and governments around the world are preparing for more attacks.

With Russia in the spotlight, I expect spending on cybersecurity tools will skyrocket.

This will boost earnings for cybersecurity companies.

Cybersecurity is more than a $200 billion market and was already poised for growth before the Russian invasion.

Forecasts have spending on cybersecurity reaching $345 billion within five years.

(Source: MarketsAndMarkets.)

Despite blossoming into a huge market, cybersecurity stocks are down nearly 30% since November.

This is due to weakness in the tech sector across the board.

If you’re invested in cybersecurity stocks already, you shouldn’t panic.

The recent pullback is a chance to add more to your position.

And if you aren’t invested in cybersecurity stocks, you have a great buying opportunity.

The Russian conflict is moving cybersecurity stocks higher NOW.

A great place to put your money is the ETFMG Prime Cyber Security ETF (NYSE: HACK).

You can watch my new video about the HACK ETF by clicking on the video below.

But some cybersecurity stocks have more to gain than others.

One of them is in Ian King’s Strategic Fortunes portfolio.

This global cybersecurity leader offers an all-in-one platform for its customers.

For more info on Strategic Fortunes, you can check out Ian’s special presentation.

Regards,

a black and white drawing of a hand with a long pointy point

Steve Fernandez

Research Analyst, Strategic Fortunes

Morning Movers

 

From open till noon Eastern time.

Renewable Energy Group Inc. (Nasdaq: REGI) provides biofuels and other lower carbon transportation fuels. The stock is up 39% on the news that it is being acquired by Chevron for $3.15 billion.

 

IntriCon Corp. (Nasdaq: IIN) designs and develops miniature interventional, implantable and body-worn medical devices. It is up 37% after the company reported great 2021 results and announced that it is being acquired by Altaris Capital Partners for $241 million.

 

First Horizon Corp. (NYSE: FHN) is an American bank that is up 29% this morning. The move came after TD Bank announced its intention to buy First Horizon for $13.4 billion as part of its U.S. expansion strategy.

 

Rheinmetall ADR (OTC: RNMBY) manufactures and supplies automotive components and defense equipment in Germany and internationally. The stock is up 26% as Germany decided to sharply increase its spending on defense in anticipation of worsening conditions between Russia and Ukraine.

 

Nordic American Tankers Ltd. (NYSE: NAT) is a shipping company that acquires and charters double-hull tankers internationally. It is up 25% on the news that insiders recently bought more of the company’s stock following its strong earnings report late last week.

 

CorMedix Inc. (Nasdaq: CRMD) focuses on developing therapeutic products for the prevention and treatment of infectious and inflammatory diseases. The stock rose 22% after the company resubmitted a New Drug Application for a catheter solution after addressing concerns from the FDA.

 

Reata Pharmaceuticals Inc. (Nasdaq: RETA) develops novel therapeutics for patients with serious or life-threatening diseases by targeting molecular pathways. It is up 22% after the company reported fourth-quarter results showing that it is on track with the development of its therapeutics.

 

Everbridge Inc. (Nasdaq: EVBG) is an event management software company. It is up 20% on a rebound after a sharp sell-off on Friday when it reported earnings and provided lower-than-expected guidance for the year.

 

ITM Power Plc (OTC: ITMPF) designs, manufactures and sells hydrogen energy systems for the energy storage, transportation and industrial sectors. The stock is up 20% along with other renewable energy stocks as the world looks to move away from relying on Russia for oil.

 

Stronghold Digital Mining Inc. (Nasdaq: SDIG) is a crypto mining company that is up 17% this morning. There is no specific news on the company; rather, it is up thanks to the surge in crypto markets today.

Source
The Russian Conflict Is Boosting Cybersecurity Stocks is written by Steve Fernandez for banyanhill.com

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