The best security stocks depend on your portfolio and investment goals — while volatility can be ideal for day traders, long-term investors will want to look to stocks with steadier gains over time.
6 security stocks to watch
We round up a selection of stocks in or related to the online and physical security industry, weighting the list more heavily towards popular mid- and large-cap US stocks.
- Napco Security Technologies (NSSC)
- OSI Systems (OSIS)
- NICE (NICE)
- Verint Systems (VRNT)
- Alarm-com (ALRM)
- FLIR Systems (FLIR)
3 tools to help identify new investments
We've compiled a list of security stocks to keep an eye on, but the stock market is volatile, and trends can change daily.
If you're actively trading stocks, staying on top of new industry trends and rising stocks can take a lot of time. Here are some of my favourite tools to keep up with trends and get new trading ideas.
- Stock screeners. You can use an online stock screener like Finviz or TradingView to see what stocks are making the biggest moves today and narrow your search by industry and market cap. Screeners are most beneficial for technical traders who have set criteria in mind for their trades. For example, if you're looking for stocks trending today in the online and physical security industry, you can pull a list of all mid-cap and large-cap stocks for that industry and sort by percent change since opening.
- Newsletters. Some of my favourites include the Motley Fool Stock Advisor and the Alpha Boost and Cherry Picks newsletters published by Tastyworks. Newsletters can be a great way to find companies that may be worth investing in for the long haul.
- Social media. While I'd never make a trade based on a Reddit thread alone, social platforms like Reddit, Twitter and Tiktok can be useful tools for staying on top of what companies people are talking about. The trendiness of a stock can directly influence its price — but those trends can also be volatile. While social media can occasionally help buy-and-hold investors, it tends to be a more practical tool for active traders.
Take a deeper dive into security stocks
If you're interested in investing in the online and physical security industry, take a closer look at what companies in this industry do and how the stocks have historically performed. Keep in mind that positive past performance doesn't guarantee that a stock will continue to rise in the future.
How to buy security stocks
Sign up with an online broker or platform to invest in one or more of these security stocks.
- Compare share trading platforms. Use our comparison table to narrow down top brokers by fees and bonuses.
- Open and fund your brokerage account. You'll need personal and financial details, like your contact and bank information.
- Search for the stock you're interested in. Find the stock by name or ticker symbol, like NSSC or OSIS.
- Decide on how many to buy. Some brokers will allow you to purchase fractional shares, while others require you to purchase whole shares.
- Choose an order type. Invest in the security stocks now with a market order or use a limit order to delay your purchase until the stock reaches your desired price.
- Buy the stock. Tap or click the Buy button on your brokerage account. Once you've invested in the online and physical security industry, track how your stock performs to decide when it's time to sell.
Compare trading platforms
Compare online trading platforms by fees, asset types and bonuses to find the best for your investment in security stocks.
Important: The standard brokerage fee displayed is the trade cost for new customers to purchase $1,000 of either Australian or US shares. Where a platform charges different fees for both US and Australian shares we show the lower of the two. Where both CHESS sponsored and custodian shares are offered, we display the cheapest option.
Bottom line
While it's possible to turn a profit investing in security stocks, keep in mind that — like any investment — security stocks are not immune to risk. These stocks are subject to fluctuating conditions — both in the market and in the online and physical security industry, so carefully vet your picks before you invest. And if you're new to investing, or if it's been awhile since you've taken a critical look at your investing accounts, compare brokers to make sure you're getting the best features in your trading account.
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