In fiscal year 2015, the federal budget is $3.8 trillion.
When you look at a number like that, a $133 million award sounds insignificant.
But the focus of that spending – on advanced cybersecurity – is very meaningful to tech investors like you.
On Sept. 1, Uncle Sam issued this “identity theft insurance” contract to privately held ID Experts. It did so to protect the 21.5 million Americans whose personal information was stolen as part of a 2014-15 cybertheft at the U.S. Office of Personnel Management.
It’s all part of a massive push – $14 billion in fiscal 2016 alone – by the nation’s leaders to thwart cyber intrusions at federal agencies and other critical places like banks and brokerages.
Of course, not all of these contracts are going to privately held firms or small and risky cybersecurity specialists.
Today I want to show you how to profit from a defense tech leader that recently opened up a new line in federal cybersecurity – a business that’ll be growing at a hefty, steady pace between now and at least 2020.
Most investors don’t even realize it’s a huge player here…
Billions and Billions
Cybersecurity will remain a growth field for years to come. Just look at the headlines.
Hardly a day goes by without a cyberattack on a government agency, corporation, bank, retailer, or university.
According to a report from Market Research Media, the federal government will spend $65.5 billion on cybersecurity between 2015 and 2020. And the pace of that spending will grow steadily at about a 6.2% compound annual growth rate (CAGR).
Take the hack of the UCLA Health System. In mid-July, hackers exposed the healthcare data of roughly 4.5 million patients.
On March 14, the U.S. State Department said Russian hackers breached its computer network and the agency had to shut it down to remove malicious software. Two weeks later, the state of Indiana had its website hacked and taken down.
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