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Soaring ID Theft Propels These 3 Security Companies

Here's a great way to play a difficult problem for consumers

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3 Security Companies: LifeLock (LOCK)

Considering LifeLock has had 35 consecutive quarters of increases in revenue and subscribers, it’s obvious the business is resonating well with consumers.

For $25 per month, LifeLock will remove your name from junk-mail lists, monitor the Web for fraudulent use of your name, Social Security number and other personal information, and alert you about potential breaches. Additionally, it says it will spend up to $1 million to help subscribers if they do become victims.

In the past, the company was criticized for preying on the fear of identity theft rather than providing a service that prevented it. Others claimed the measures LifeLock took could be done by anyone, without its help, which is true. More recently, the Federal Trade Commission (FTC) began an investigation into its marketing and advertising policies. The news brought shares down from a peak of $23 in February to about $18 today.

However, the company is in a good financial position. Total revenue for 2013 rose 34% from a year ago to $369.7 million, and is projected to grow between $455 million and $465 million in 2014.

Its IPO went for $9 just over a year ago, and newlyweds to the stock are basking in 102% gains.

Article printed from InvestorPlace Media,

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