What are "Trust Brokers" and why are they important for investors?

Trust Brokers are companies that provide security, validation, and certification services that other businesses rely on. They include cybersecurity firms, credit rating agencies, and specialized consultancies. These companies are important for investors because their services remain essential regardless of economic conditions, potentially offering stability in a portfolio. As digital threats and complexity increase, demand for trust services tends to grow.

What is cybersecurity and why does it matter for these stocks?

Cybersecurity refers to the practice of protecting systems, networks, and programs from digital attacks. Many companies in this group (like CRWD, PANW, CYBR) specialize in cybersecurity solutions. As cyber threats become more sophisticated and frequent, businesses must invest in protection, creating sustained demand for these services. This non-discretionary nature of cybersecurity spending helps these companies maintain growth even during economic downturns.

What are credit bureaus and how do they make money?

Credit bureaus (like EFX and TRU in this group) are companies that collect and maintain consumer credit information, which they then sell to lenders, landlords, employers, and others who need to evaluate someone's creditworthiness. They make money primarily by selling credit reports, scores, and analytics to businesses, as well as offering credit monitoring services to consumers. Their business model is resilient because credit checks are required for most financial transactions, regardless of economic conditions.

What does "inelastic demand" mean for these companies?

Inelastic demand means that customers will continue to purchase a product or service regardless of price changes or economic conditions. For trust brokers, this is a key strength—businesses can't simply choose to skip cybersecurity or credit checks to save money during tough times. This inelasticity gives these companies significant pricing power and revenue stability, making them potentially attractive investments during market uncertainty.

How does artificial intelligence (AI) affect the trust broker industry?

AI impacts the trust broker industry in two important ways. First, it creates new, sophisticated threats (like deepfakes and advanced cyberattacks) that increase demand for security and verification services. Second, many of these companies are incorporating AI into their own products to detect threats more effectively or process data more efficiently. This dual relationship with AI acts as a growth catalyst for many companies in this group.

15 handpicked stocks

Trust Brokers

In today's uncertain world, these carefully selected companies profit by providing essential security, validation, and certification services. They sell trust itself—a non-discretionary commodity that commands premium pricing and ensures reliable demand regardless of economic conditions.

Han Tan | Market Analyst

Published on June 17

Top Picks from This Group

Here are a few of the assets in this group. Create an account to unlock the full list.

Moody's Corporation

MCO

Current price

$481.52

It provides essential credit ratings and risk analysis that underpin trust in global capital markets.

CrowdStrike Holdings, Inc.

CRWD

Current price

$496.80

Its cloud-native platform provides endpoint security, ensuring trust in the devices used across an organization.

Palo Alto Networks, Inc.

PANW

Current price

$208.50

As a leader in enterprise cybersecurity, it provides a comprehensive security platform that enables organizations to operate with confidence.

Equifax Inc.

EFX

Current price

$232.35

Fair Isaac Corp

FICO

Current price

$1,781.19

TransUnion

TRU

Current price

$73.92

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12 Month Growth Potential

Use the growth calculator to see how much investing in these assets could return over one year, based on aggregated analyst sentiment provided by Refinitive Ltd.

If you invested across these assets:

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In 12 months it might be worth:

$1,000.00

+16.68%

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About This Group of Stocks

Our Expert Thinking

As global systems grow more complex and threats become more sophisticated, businesses that provide verification, security, and trust services enjoy increasing demand. These companies have transformed trust from an intangible concept into a profitable business model with strong pricing power.

What You Need to Know

This collection includes leaders in cybersecurity, credit rating agencies, and specialized consultancies. Their services remain essential regardless of economic cycles, making them potential defensive anchors in a diversified portfolio. Many benefit directly from the rise of AI and increasingly complex digital threats.

Why These Stocks

We've selected market leaders whose names have become synonymous with reliability and authoritative judgment. Each company has established a significant competitive moat by becoming the gold standard in their field, whether in cybersecurity, financial ratings, or high-stakes consulting.

Group Performance Snapshot

16.53%

Average 12 Month Profit

On average, analysts expect assets in this group to grow 16.53% over the next year.

15 of 15

Stocks Rated Buy by Analysts

15 of 15 assets in this group are rated Buy by professional analysts.

Source: Analyst sentiment is provided by Refinitiv Ltd, a global leader in financial market data with over 40k business clients. Refinitiv Ltd is an independent third party to Nemo. This is not advice.

Why You'll Want to Watch These Stocks

🛡️

Rising Threats, Rising Profits

As cyber threats and AI-powered scams grow more sophisticated, companies that provide security solutions are seeing surging demand. It's a case of bad news for the world but good news for investors.

💎

Recession-Resistant Reliability

Trust services aren't luxuries companies cut during downturns—they're essential costs of doing business. This makes these stocks potentially more stable when markets get rocky.

🔍

The Hidden Infrastructure of Trust

While consumers rarely interact with these companies directly, they power the trust systems that make our digital and financial lives possible. Without them, modern commerce would grind to a halt.

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