In this piece, we will take a look at the 13 best video surveillance and private security stocks to buy. If you want to skip our introduction to the private security and video surveillance industry, then take a look at 5 Best Video Surveillance and Private Security Stocks to Buy.
The video surveillance and private security industry is another sector that has been transformed due to advances in connectivity and technology. Closed circuit (CCTV) cameras can be accessed by their operators virtually through the internet and at the same time, other devices such as smart robots also enable people to detect home intruders remotely. Additionally, the growth in mass production has also allowed more people to access security cameras and other services, making private security more affordable than it was during its early days.
In terms of monetary value, the global surveillance and private security industry was worth $224 billion in 2022 and is expected to grow to $235 billion by the end of this year. From then until 2030, the industry is expected to grow at a compounded annual growth rate (CAGR) of 5.3% for a final value of $230 billion by the end of the forecast period. Research shows that the coronavirus pandemic was actually helpful to the private surveillance industry since hospitals and companies hired security firms and invested in technologies such as thermal cameras to ensure that people were complying with the virus related restrictions.
As should be expected, industrial users are the biggest customer segment of private security companies, since they often rely on them to safeguard valuable inventory stored in warehouses and other facilities. Segregating the private security market according to geography, Asia Pacific is the biggest market due to its large population, rapid economic growth, and a growing number of users who require video surveillance and private security. While America is the largest economy in the world in nominal terms, some of the world's biggest ecconomies and most populous regions such as China, India, and Japan are Asian countries, which naturally makes the region quite lucrative.
Moving forward to industry trends, private surveillance is perhaps one of the biggest beneficiaries of the current advances in machine learning and artificial intelligence. This is because image recognition is a central part of this industry, and heavy duty applications of AI and ML carry the chance of revolutionizing it by running real time algorithms on camera footage to determine whether a known criminal is in the frame or if there is a threat of a break in, arson, or any other illegal activity. However, this is causing privacy concerns. They are already surfacing in France, where the next summer's Olympic Games are set to take place. The Olympics are among the biggest events in the world, and they see thousands of athletes and supporters rush to the hosting country to prove their sporting mettle and support their country. As part of providing security coverage to Paris for the Olympic Games, the city plans to use AI equipped surveillance cameras to detect suspicious activities. France has recently passed a new law that allows CCTV cameras to use AI to detect rowdy activities, but facial recognition for suspicious actions is still prohibited in the country. While the Olympics have cast fresh light on the European power's digital surveillance plans, several cities in France have already employed similar technologies. One example is the Northern Paris suburb Massy, where a team of four police officials use an AI monitoring device to analyze footage from more than two hundred security cameras. However, the use of AI during the Olympics makes rights groups worry that special legal provisions aimed to facilitate the Olympics could end up becoming a permanent feature of French laws and harm individual freedoms.
Security personnel at their consoles, monitoring a global network of threats in real-time. Editorial photo for a financial news article. 8k. --ar 16:9
So, within this dynamic environment, we decided to take a look at the top video surveillance and private security stocks to buy according to hedge fund sentiment. Within this list, the top three stocks are Napco Security Technologies, Inc. (NASDAQ:NSSC), Allegion plc (NYSE:ALLE), and Resideo Technologies, Inc. (NYSE:REZI).
To compile our list of the best private security and surveillance stocks, we first made a list of all security and protection services stocks trading in the US. Then, the top stocks with the greatest number of hedge fund investors as of Q2 2023 were selected and are as follows.
13 Best Video Surveillance and Private Security Stocks to Buy
13. Iveda Solutions, Inc. (NASDAQ:IVDA)
Number of Hedge Fund Investors in Q2 2023: 4
Iveda Solutions, Inc. (NASDAQ:IVDA) is a technology firm that provides video analytics software, AI support, and other video surveillance services. The firm expanded its global presence in October when it announced a partnership with a Taiwanese firm for its video software.
By the end of this year's second quarter, four out of the 910 hedge funds part of Insider Monkey's database had held a stake in Iveda Solutions, Inc. (NASDAQ:IVDA). Along with Allegion plc (NYSE:ALLE), Napco Security Technologies, Inc. (NASDAQ:NSSC), and Resideo Technologies, Inc. (NYSE:REZI), it is a top private security and video surveillance stock.
12. Mistras Group, Inc. (NYSE:MG)
Number of Hedge Fund Investors in Q2 2023: 9
Mistras Group, Inc. (NYSE:MG) provides asset surveillance and monitoring services to heavy duty industrial users such as oil companies. It is one of the top rated stocks on our list, as the shares are rated Strong Buy on average. Analysts have also penned in a 94% upside to the current share price of $5.15.
As of Q2 2023 end, nine among the 910 hedge funds tracked by Insider Monkey had bought the firm's shares. Out of these, the Mistras Group, Inc. (NYSE:MG)'s largest shareholder is Thomas E. Lynch's Mill Road Capital Management since it owns 1.4 million shares that are worth $11.4 million.
11. CoreCivic, Inc. (NYSE:CXW)
Number of Hedge Fund Investors in Q2 2023: 13
CoreCivic, Inc. (NYSE:CXW) is an American prison company that operates prisons and other establishments for criminal surveillance all over America. Seems like Wall Street is quite bullish on prisons, as CoreCivic, Inc. (NYSE:CXW)'s shares are also rated Strong Buy with the latest Overweight rating coming from Wedbush in August 2023.
After digging through 910 hedge funds for their investments for this year's June quarter, Insider Monkey discovered 13 CoreCivic, Inc. (NYSE:CXW) investors. Ali Motamed's Invenomic Capital Management owns the biggest stake among these which is worth $5.7 million.
10. The GEO Group, Inc. (NYSE:GEO)
Number of Hedge Fund Investors in Q2 2023: 16
The GEO Group, Inc. (NYSE:GEO) is another private prison company, but unlike CoreCivic, it has a vast global presence where it helps build and maintain surveillance facilities. It's the third stock on our list that is rated Strong Buy on average, and institutional investors seem to heavily favor the stock as they own more than 76% of the stock.
During this year's second quarter, 16 hedge funds among the 910 tracked by Insider Monkey had invested in the company. The GEO Group, Inc. (NYSE:GEO) 's largest hedge fund investor is John Overdeck and David Siegel's Two Sigma Advisors as it owns $17.6 million worth of shares.
9. ADT Inc. (NYSE:ADT)
Number of Hedge Fund Investors in Q2 2023: 16
ADT Inc. (NYSE:ADT) is a home and business security company that provides services such as video surveillance and fire suppression. The firm divested its business fire suppression and security division in October for a $1.6 billion price tag and aims to use the funds to improve its debt position.
Insider Monkey took a look at 910 hedge fund holdings for their Q2 2023 investments and found that 16 had owned a stake in ADT Inc. (NYSE:ADT). John W. Rogers' Ariel Investments is the biggest shareholder among these since it owns 21 million shares that are worth $128 million.
8. MSA Safety Incorporated (NYSE:MSA)
Number of Hedge Fund Investors in Q2 2023: 17
MSA Safety Incorporated (NYSE:MSA) is a diversified industrial asset monitoring company that sells advanced products such as thermal imaging cameras. Like other industrial monitoring firms on our list, its shares are also rated Strong Buy on average, and analysts have penned in a $30 share price upside over the average share price of $153.
17 out of the 910 hedge funds part of Insider Monkey's database had invested in the firm as of June 2023. Robert Joseph Caruso's Select Equity Group is the largest shareholder in our database due to its $273 million investment.
7. The Brink's Company (NYSE:BCO)
Number of Hedge Fund Investors in Q2 2023: 18
The Brink's Company (NYSE:BCO) is a private security company that caters to the needs of banks by providing cash transport and other services. The firm is currently suing a Canadian airline in the aftermath of a ludicrous heist that saw an unidentified individual take off with a whopping 400 kilograms of gold and $1.7 million in cash at the Toronto Pearson airport.
During 2023's second quarter, 18 hedge funds out of the 910 surveyed by Insider Monkey had bought The Brink's Company (NYSE:BCO)'s shares. Out of these, the biggest investor is John W. Rogers' Ariel Investments as it has invested $128 million in the company.
6. Bridger Aerospace Group Holdings, Inc. (NYSE:BAER)
Number of Hedge Fund Investors in Q2 2023: 19
Bridger Aerospace Group Holdings, Inc. (NYSE:BAER) is a specialized video surveillance company that deals with natural disasters such as fires by providing aerial surveillance. The firm is currently expanding its aircraft fleet and bought four planes worth €40 million in September 2023.
19 out of the 910 hedge funds part of Insider Monkey's Q2 2023 database had held Bridger Aerospace Group Holdings, Inc. (NYSE:BAER)'s shares. It joins Napco Security Technologies, Inc. (NASDAQ:NSSC), Allegion plc (NYSE:ALLE), and Resideo Technologies, Inc. (NYSE:REZI) in our list of the best video surveillance and private security stocks to buy.
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Disclosure: None. 13 Best Video Surveillance and Private Security Stocks to Buy is originally published on Insider Monkey.