3 Security Stocks Investors Are Watching As Election Protection Concerns Rise

U.S. political risk is back in focus as security concerns around the election cycle intensify, and that is pulling fresh attention to companies tied to protection, surveillance and access control. For investors, this is a rare moment when day to day headlines directly intersect with potential stock market opportunities and risks. This article walks through 3 stocks exposed to the current news story and how each could fit, or not, in a portfolio.

The three stocks discussed below represent only an initial sample. The full screen identified 41 additional U.S.-listed security and surveillance companies with similarly compelling narratives that are not covered in this article. To explore this space further, analyze and identify your own high-conviction ideas directly in the Security and Surveillance Services & Equipment screener.

Brady (BRC)

Overview: Brady is a century old industrial company that supplies identification and workplace safety products such as signs, labels, lockout/tagout devices and access related badges and software that help secure facilities and manage people flow at workplaces and events across the Americas, Europe, Asia and Australia.

Operations: Brady generates about $1.1b of revenue from its Americas & Asia segment and $555 million from Europe & Australia, with the United States contributing roughly $952 million of the total.

Market Cap: US$4.2b

Investors looking at security linked opportunities may want Brady on their radar because it combines long established safety and identification products with a push into higher value automation, traceability and data capture through deals like the Honeywell PSS acquisition. That positions Brady in areas such as access control, event signage and asset tracking that can see more attention when political risk and venue security are in the headlines. The company also has a long dividend record and a new CEO tasked with integrating recent acquisitions and sharpening execution. Key questions for you are how well Brady can offset tariff and currency headwinds, and whether it can keep margins healthy as it scales this broader security and compliance platform.

Brady’s push into automation, traceability and data capture could be the real story investors are missing. For the full context, including how acquisitions reshape the security thesis, see the analysis report for Brady.

Napco Security Technologies (NSSC)

Overview: Napco Security Technologies develops and sells electronic security systems, including access control, intrusion and fire alarms, electronic door locks and video surveillance, that are used in schools, commercial buildings, institutions, industrial sites and government facilities where physical protection and monitoring are mission critical.

Operations: Napco generates about US$202 million of revenue from electronic security devices, with roughly US$200 million coming from the United States and a small contribution from foreign markets.

Market Cap: US$1.3b

Investors focused on election related security may consider Napco Security Technologies because its products are directly involved in access control, alarms and video surveillance for high risk venues, from schools to government buildings. The company has been emphasizing higher margin recurring revenue from services such as its StarLink radios and cloud platforms, which can make earnings more predictable than those of pure hardware suppliers. In addition, a strong balance sheet and rising dividends indicate financial discipline. On the other hand, reliance on a few key platforms, sensitivity to hardware demand and recent one off charges all deserve close attention. For readers interested in the security theme with a direct link to on the ground systems, this is a company that may warrant closer monitoring.

Napco Security Technologies is shifting toward higher margin recurring revenue that many investors may not have fully factored in yet. To see how that mix ties into its future potential and key pressure points, review the analysis report for Napco Security Technologies

LightPath Technologies (LPTH)

Overview: LightPath Technologies designs and manufactures optical components, infrared lenses and camera systems that sit inside imaging and sensing equipment, including long range surveillance cameras used in defense, border and perimeter security, as well as medical, industrial and automotive applications.

Operations: LightPath generates about $62.8 million of revenue from its Optics segment, with roughly $31 million from the United States, $25 million from Europe and smaller contributions from China and other regions.

Market Cap: US$642 million

Investors watching political risk and security spending may find LightPath Technologies interesting because it operates across both components and full infrared camera systems that can be used in surveillance, border protection and Counter UAS projects, including a recent $11 million follow on order for infrared cameras. The G5 Infrared acquisition moves the company further up the stack into higher value systems and defense contracts. However, the stock trades on rich sales multiples, remains loss making and has relied on fresh equity, which increases sensitivity to execution missteps. Management’s ability to integrate G5 effectively, manage supply chain exposure to materials such as germanium and convert forecast growth into sustainable profits could influence how investors view LightPath as a security optics platform.

LightPath’s move up the infrared value chain has investors focused on growth, yet the bigger question is how that story lines up with future demand and contract risk. Get the missing context in the analyst forecasts for LightPath Technologies

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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