What are "caregiver brands" in the investment context?

Caregiver brands are companies whose core identity centers around protection, trust, and reliability. These businesses provide products or services designed to keep people, data, or assets safe. They include cybersecurity firms, insurance providers, and manufacturers of safety equipment. Their focus on essential, non-discretionary services tends to create loyal customer relationships and stable revenue streams.

Why might cybersecurity companies be considered good investments?

Cybersecurity companies often benefit from persistent and growing demand as digital threats increase in sophistication and frequency. Their services are typically non-discretionary (businesses can't afford to go without protection), creating recurring revenue streams through subscription models. As more aspects of our lives and economy become digital, the need for protection grows, providing these companies with long-term growth potential regardless of economic conditions.

What makes these stocks potentially "defensive" in a portfolio?

Defensive stocks tend to maintain performance during economic downturns because they provide essential services that people need regardless of economic conditions. Caregiver brands typically offer protection-related services that remain necessary in good and bad times. For example, companies still need cybersecurity during recessions, and individuals still need insurance coverage. This non-discretionary nature can provide portfolio stability when more economically sensitive sectors experience volatility.

What is "privileged access management" in cybersecurity?

Privileged access management (PAM) is a cybersecurity approach that safeguards an organization's most sensitive accounts and systems. It controls and monitors access for users with elevated permissions (like administrators) who can make system-wide changes or access confidential data. PAM is critical because these privileged accounts are prime targets for hackers—gaining access to them could allow attackers to control entire networks or steal valuable information. Companies providing PAM solutions help organizations prevent unauthorized access to their most valuable digital assets.

What does "exposure management" mean in the security context?

Exposure management in cybersecurity involves systematically identifying, assessing, and addressing potential security vulnerabilities before they can be exploited. Companies like TENB help organizations discover weak points in their networks, systems, and applications, then prioritize which gaps to fix first based on risk. Think of it as proactively checking all the doors and windows of a building to ensure they're properly secured, rather than waiting for a break-in to happen. This approach helps organizations reduce their "attack surface"—all the potential entry points hackers could use.

15 handpicked stocks

Caregiver Brands

These companies have built their reputations on protection, trust, and reliability. Carefully selected by our analysts, they provide essential, non-discretionary services that customers consistently need, creating resilient business models with loyal customer bases.

Han Tan | Market Analyst

Updated 2 days ago | Published at juin 17