4 Security & Safety Stocks to Consider on Promising Industry Trends

Industry Overview - The Zacks Security and Safety Services industry is positioned to benefit from strong demand for security products and solutions, driven by increased awareness of safety for people and infrastructure [1][4] - The industry includes firms providing advanced security solutions for residential, commercial, and institutional purposes, including personal defense and hazard detection [3] Demand Drivers - Rising instances of terrorism and criminal activities are increasing the demand for security services, with governments and businesses deploying IP-based cameras for enhanced surveillance [4] - Urbanization and the need for infrastructure safety are also contributing to industry growth, alongside a surge in demand for cybersecurity products due to hacking incidents [4] Investment Trends - Increased government budgets and funding are encouraging significant investments in research and development for advanced security products [5] - Collaboration between government agencies and industry players is aimed at strengthening security infrastructure in smart cities [5] Financial Metrics - The industry's long-term debt/capital ratio is 0.62, significantly higher than the Zacks S&P 500 composite index's 0.28, indicating a focus on innovation and product development [6] - The industry currently trades at a forward P/E of 16.56X, lower than the S&P 500's 21.88X and the sector's 19.35X, suggesting potential undervaluation [13] Performance Comparison - The Zacks Security and Safety Services industry has returned 7.7%, underperforming the S&P 500's 12% growth but outperforming the broader Industrial Products sector, which declined by 1.9% [10] Key Players - Life360: Engaged in location tracking and safety services, with a 42.7% share price increase over the past six months and a 9.1% upward revision in 2025 earnings estimates [18][19] - Allegion: A leading provider of security products, benefiting from demand in non-residential markets, with a 4.4% share price increase and a 0.5% upward revision in earnings estimates [22][23] - Alarm.com: Focused on IoT solutions, experiencing strong momentum in its SaaS business, with a 0.4% upward revision in earnings estimates [26][27] - MSA Safety: Develops safety products with a 12% share price increase in the past month, consistently surpassing earnings estimates [30][31]