Over the last decade, cybercrime has increased worldwide, impacting the personal security of billions of people.

The surge in cybercrime has created a massive $230 billion cybersecurity industry – one that is set to grow exponentially over the next several years.

In fact, a report from Cybersecurity Ventures estimates that spending to combat cybercrime could reach $1 trillion by 2021.

With such impressive growth on the horizon, we’re incredibly excited about the profit potential of this market over the next several years.

That’s why we’re bringing you the best cybersecurity stock to buy in 2018.

Let’s take a look at the numbers behind cybercrime’s growth and the best company to take advantage of the expanding digital security market…

The Cybersecurity Industry Is Experiencing Staggering Growth

The numbers are staggering.

In just the first six months of 2017, there were 230% more data breaches in the United States than the prior year. Some of the major U.S. companies that experienced breaches include Verizon Communications Inc. (NYSE: VZ), Microsoft Corp. (Nasdaq: MSFT), and Equifax Inc. (NYSE: EFX).

The U.S. government has been the victim of breaches as well, which those intelligence experts warned the Senate about. In the past five years alone, some of the government agencies that have experienced data breaches include the U.S. Office of Personnel Management and the U.S. Voter Database.

The figures are even greater globally. Cybersecurity firm McAfee Inc. reported international cybercrime cost as much $600 billion in 2018, roughly 0.8% of global GDP. That’s a 25% increase over the 2014 figure of $445 billion reported just three years earlier.

The rapid raise of cybercrime has fostered an equally robust expansion in the cybersecurity industry.

According to research firm MarketsandMarkets, the cybersecurity market could grow from a current $138 billion value in 2017 to over $232 billion by 2022. That’s a growth rate of nearly 14% a year.

With such explosive growth potential on the horizon, this is the perfect time to consider investing in the cybersecurity industry.

Our pick for the best cybersecurity stock to buy is perfectly positioned to benefit from increased global efforts to rein in cybercrime.

Here it is…

The Best Cybersecurity Stock to Buy in 2018

Raytheon Co. (NYSE: RTN) is our pick for the top cybersecurity stock to buy this year.

Raytheon is worth more than $25 billion and is the country’s third-largest defense contractor thanks to its missiles, missile defense systems, and other high-tech equipment.

While primarily known as one of the nation’s top defense contractors, Raytheon has an increasingly active presence in the cybersecurity industry.

You see, Raytheon has a cybersecurity division called Forcepoint that promises to be a major player in the war against cybercrime in the coming years.

Between 2015 and 2016, Forcepoint boosted its revenue 72.56%, from $328 million to $566 million. This remains a small portion of Raytheon’s total annual revenue, but Forcepoint is growing much faster than any other area of its business.

Raytheon projects a 15% annual rate of growth for its cybersecurity division through 2021, more than the cybersecurity market as a whole.

Raytheon’s Forcepoint has a definite edge over cybersecurity competitors. The division has the security clearances in place to work with any government agency.

Forcepoint renewed a $1 billion contract with the U.S. Department of Homeland Security last summer to prevent data breaches, and it announced a new alliance with Pivotal Software Inc. in December to work on cloud migration projects for the U.S. Department of Defense.

Raytheon currently trades near $219 per share. However, if Forcepoint continues to aggressively grow, as it has in the past, Raytheon’s cybercrime division could quickly become one of its most profitable and will be a catalyst for the share price to potentially double over the next several years.

This kind of potential growth has analysts pinning a high price target of $265 on Raytheon. That’s a 21% increase over today’s market price.

Additionally, the company not only pays a 1.47% dividend yield, but it has also reduced its outstanding shares over the past decade by 30%, suggesting that Raytheon considers itself undervalued by the larger market.

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Source: Money Morning