Top 3 Stocks in a Sneaky A-Rated Industry

Depending on who you ask, security is excitement or dudgery. Security stocks, however, are certainly worth your attention for potentially locking down part of your portfolio. Yet there are security stocks that are safer than others. That’s what our Zen Ratings system is for. The top stocks with an A Zen Rating have an average annual return of 32.52%.

To that end, we’ve selected the top stocks in the security and protection industry with an A or B Zen Rating, so you don’t have to keep looking.

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1. CoreCivic Inc (NYSE: CXW)

The private prison owner and operator has often been in uncertain waters given the potential political volatility of their business, but in current times, CXW is getting some wind behind its sails. Recent contract awards in California, Tennessee, and other places are helping to cement future business.

And while the last month hasn’t necessarily been kind to the share price (see below), CXW still has value potential and strong sentiment behind it (it has a Component Grade of A for Sentiment).

2. ADT Inc. (NYSE: ADT)

One of the bigger names in home and business security (you might know them previously as Prime Security Services), ADT handles surveillance, fire detection and suppression, and access control for clients ranging from homeowners to large businesses. As an investor, you might see them as a value opportunity, given their excellent Component Grade of A for Value.

While it has a Zen Rating of B, it still puts it in the top 20% of the stocks we cover, and it remains at the top of potential value propositions, especially compared with other companies in the industry. For evidence, simply look at its P/E of 11.88 (well below the US market average and somewhat below the industry average).

3. Brinks Co (NYSE: BCO)

You might have seen the armored trucks, but Brinks is a general private security and protection company that works with banks, governments, large retailers, jewelers, and more. A longstanding business (since 1859), BCO is not only safe in its business but relatively safe as an investment. It has a Component Grade of A for Safety (in addition to an A in Sentiment).

We covered it a few months ago as a low-volatility stock, and it remains so with a beta of 0.93, but it has also maintained a decent share price amidst economic uncertainty and still has room to grow.

Hopefully, these inspired some thoughts for your portfolio. However, stocks can change, and so can their ratings. To keep track of these and any other stocks you might be interested in, you should consider WallStreetZen Premium. With it, you’ll get an unlimited watchlist, all the fundamental information you need, access to premium stock ideas pages, and more.  

And if you want more guided picks, then Zen Investor is what you’re looking for. With it, you’ll receive regular updates from our own Steve Reitmeister on the state of the market, as well as access to exclusive webinars and our Zen Investor model portfolio. Each stock in the portfolio is carefully selected using both the Zen Ratings system and Reitmeister’s 40+ years of investing experience.

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