Bank of America: Profit From A New Age In Security
A recent report by Bank of America focused on investment themes for a changing world. One of the areas that the report identified as a source of change is security. Bank of America analysts believe that societal advancements are producing new potential threats each year, and the business of protecting people from these threats will continue to boom in the future.
Over a million people die in car accidents each year, and over two million people die at work annually. Workplace and auto safety are two of the areas of opportunity that analysts identify in the report.
Despite the much smaller number of deaths that come as a result of terrorist attacks (only about 15,000 per year), anti-terrorism security is a critical and thriving sector as well.
Terrorism can take many forms, and analysts believe that cyber-attacks now pose a greater risk to the financial world than traditional terrorist activities. For U.S. companies, the average cost of cyber-attacks in 2013 was $11.6 million. Worldwide, cyber-crime costs the global economy about $500 billion each year.
It’s not just money and data that is at risk from cyber-attacks. Cyber-terrorists threaten to shut down or manipulate power grids and other infrastructure systems in an increasingly-wired society.
Although it’s certainly not a new source of risk, analysts also mention threats posed by the deteriorating environment and potential new human, livestock or produce diseases.
The stocks that Bank of America recommends as a means to capitalize on the demand for modern security include the following:
• Qihoo 360 Technology Co Ltd (NYSE: QIHU), China’s top provider of cyber-security
• Greenbrier Company Inc (NYSE: GBX), producer of next-generation railroad tank cars
• NXP Semiconductors NV (NASDAQ: NXPI), provider of chip-based EMV credit card security
• FireEye Inc (NASDAQ: FEYE), developer of cyber-security platforms
• Bruker Corp (NASDAQ: BRKR), designer and manufacturer of high-performance scientific instruments
• Trend Micro (OTC: TCIMY), Japan’s top developer of cyber-security software
• Thermo Fisher Scientific Inc (NYSE: TMO), a top producer of scientific research and analysis equipment
• Delphi Automotive PLC (NYSE: DLPH), manufacturer of automotive safety systems
Bank of America analysts predict that investors in these companies will find themselves in the middle of a $1.5 trillion security market by 2020.
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