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Regardless of troublesome market circumstances, I feel this data know-how share is a high development inventory to think about in October. Right here’s why.
An enormous alternative
Different important assaults in 2025 alone have sabotaged operations and stolen information at Jaguar Land Rover, Marks & Spencer, UnitedHealth and Astral Meals. As this record reveals, hackers aren’t limiting their assaults to sure sectors or areas, that means corporations the world over have to be vigilant towards such threats.
This leaves an infinite alternative for software program corporations like Softcat (LSE:SCT). Some analysts imagine the worldwide cybersecurity market may increase at an compound annual price of 10% from now to 2033.
Softcat supplies a variety of IT functions for companies. This consists of cloud providers, networking, connectivity and software program licensing. But it surely’s within the discipline of cyber safety the place its purchasers are exhibiting the best curiosity.
The FTSE 250 firm has mentioned that “our annual customer experience survey highlighted cyber security as the most common customer priority, reflecting the relentless development of new cyber threats and the need to protect proliferating and increasingly sensitive data and operating systems.”
Reflecting this, Softcat mentioned sturdy demand on this section drove gross revenue development of 12.1% within the first half of its monetary 12 months (August-January).
Spectacular development
What I like about Softcat is its diversified method throughout totally different IT segments. Not solely does this present a mess of the way to capitalise on the booming digital economic system and development segments like cybersecurity. It additionally leaves it higher positioned to defend and develop earnings if explicit areas come beneath strain.
This broad wingspan has delivered strong and constant annual bottom-line development over the past 5 years. In monetary 2020, it recorded earnings per share (EPS) of 38.2p per share. Final 12 months this had leapt to 59.7p per share.
Metropolis analysts predict Softcat’s proud file of earnings enchancment to proceed, too.
Monetary 12 months To July…EPSAnnual development202568.1p14percent202671.5p5percent202778.2p9%
A high tech inventory
In fact there are risks to those forecasts. Robust financial circumstances in its markets may influence gross sales if corporations reduce on spending. This may occasionally not influence important areas like cybersecurity, however demand for its different providers may disappoint.
On high of this, Softcat faces not-insignificant competitors throughout its markets. This consists of from heavyweight US know-how corporations which have deeper pockets and stronger model energy.
However this UK development inventory has proved it has what it takes to thrive regardless of these dangers, as these sturdy half-year outcomes I discussed present. Softcat shares have delivered a median annual return of twenty-two% during the last decade. I’m anticipating it to stay a high inventory for long-term buyers to think about.
