Security is becoming increasingly crucial around the world, and Bank of America thinks investor portfolios can benefit from owning certain names. The bank on Monday released its “Future Security” primer, examining stocks through a lens of safety. It also incorporates both firms’ exposed to physical security and cybersecurity. “If cybercrime damage were a state, it would be the world’s 3rd largest economy,” analyst Felix Tran said in a Monday note. “The new world feels less safe, with converging risks of food/energy shortages, social polarization and inequality. Against this unsettling backdrop, many of us are craving stability, safety and security.” The firm also noted that artificial intelligence remains a looming headwind despite its technological benefits and posits 90% of online content could be AI-originated in just two years. Here are five stocks Bank of America thinks can thrive in a dangerous world. CrowdStrike made BofA list within its “safety in an online world” segment. Shares of the cybersecurity stock have surged nearly 68% this year, and the company has taken steps of its own to incorporate artificial intelligence into its range of products. CRWD YTD mountain CrowdStrike YTD “CrowdStrike’s platform is one of the few 100% cloud-based architectures and is uniquely positioned to displace incumbents with its platform breadth, including advanced detection and remediation capabilities,” BofA analyst Tal Liani wrote. Information security company CyberArk Software also made the list. The stock is up nearly 29% year to date. CEO Matt Cohen asserted in August that CyberArk is investing millions of dollars into protect from ransomware attacks originating from AI. CYBR YTD mountain CyberArk YTD “CyberArk is the clear leader within the PAM [privileged access market] market, with a robust technological moat,” Liani said. Another name that made the cut is consumer credit reporting agency TransUnion . BofA lauded the company’s growth of its fraud prevention business through mergers and acquisitions, and said the company will remain significant while worry over online fraud persists. TRU YTD mountain TransUnion YTD. “These factors make it increasingly important for consumer facing companies to know who is on the other side of a transaction and that they are working with trusted technology and data partners,” analyst Heather Balsky said. Shares are up more than 20% year to date. In physical security, Motorola Solutions made the cut. Shares have ticked up more than 9% from the start of 2023. The company produces radio systems used for public safety and also develops command center software. MSI YTD mountain Motorola Solutions YTD “Physical security is a powerful tool within public safety and enterprise security; however, the inappropriate usage of such technologies can have harmful influences on personal privacy,” analyst Tomer Zilberman said. “As the restriction of certain Asian vendors in Western countries demonstrate, the inappropriate usage of these technologies can lead to denial of market access, providing a structural tailwind to companies with North American-based R & D and manufacturing, such as Motorola.” Life safety company APi Group also made the list, with analyst Andrew Obin highlighting its necessity as a performer of regulatory inspection for equipment within buildings. Shares have added nearly 39% from the start of the year. APG YTD mountain APi Group stock. “Over 50% of APi Group’s revenue comes from inspection, service, and monitoring services,” Obin said. “These revenues come from multi-year contracts (typically 3-5 years) with high renewal rates. If an inspection uncovers a needed repair or retrofit, APi Group generally negotiates directly with clients (versus competitive bids).” BofA’s note comes after an attack by Hamas against Israel, which led Israeli Prime Minister Benjamin Netanyahu to declare that his country is at war. The attack is also the deadliest Israel has experienced in 50 years . — CNBC’s Michael Bloom contributed to this report.
