Political headlines around surveillance, legal battles and federal agencies are back in focus, and that is pulling fresh attention to security and monitoring stocks. For investors, the question is how this scrutiny might reshape risk and opportunity. This article looks at three stocks from a Security and Surveillance Technology screener that are directly exposed to the latest news on alleged illegal surveillance and high level investigations. Each stock has been filtered for financial and operational strength. You will see how their business profiles connect to the current story and where that might matter most for your portfolio thinking.

Cloudflare (NET)

Overview: Cloudflare is a global cloud services company that sits in the middle of internet traffic, helping organisations secure and speed up their websites, apps and networks across data centers, clouds, on-premises systems and IoT devices. Its platform spans security, performance, zero trust access, networking and developer tools that are used by enterprises, governments and non profits.

Operations: Cloudflare generates about US$2.3b in revenue from internet and network services, with roughly US$1.2b from the United States, US$640m from Europe, the Middle East and Africa, US$355m from Asia Pacific and US$179m from the rest of the world.

Market Cap: US$94.3b

Cloudflare sits at the intersection of cybersecurity, AI infrastructure and rising concern about digital surveillance, which puts it in the spotlight as governments and corporations reassess how they monitor and protect data. The company is still loss making, and analysts expect revenue and earnings growth and see potential for margins to improve as its zero trust and SASE offerings scale. That growth story is balanced by real risks, including intense competition from hyperscale cloud providers and questions about whether current pricing already reflects very optimistic expectations. If you are trying to understand whether the current attention on security, AI agents and regulatory scrutiny justifies Cloudflare’s valuation, the details behind these trends matter.

Cloudflare’s zero trust and AI security story is gaining attention, but the real question is what analysts think happens next to its revenue and margins. Get the full picture with the analyst forecasts for Cloudflare

Codan (ASX:CDA)

Overview: Codan is an Australian technology company that supplies secure communications systems and metal detection equipment to governments, defense and security agencies, corporates and small scale miners worldwide, with products ranging from mission critical radios to handheld gold detectors.

Operations: Codan generates most of its revenue from Communications at about A$448.3m and Metal Detection at about A$307.8m, with a small A$6.1m contribution from Other activities.

Market Cap: A$7.0b

Codan sits at the intersection of secure communications, surveillance and resource security. Fresh scrutiny of government monitoring practices could put its technology in sharper focus. The company has been growing earnings faster than the broader Australian market, backed by high margins from Minelab detectors and rising demand for secure radios from defense and public safety customers. At the same time, exposure to cyclical gold detection, reliance on government procurement cycles and a relatively high P/E mean you cannot ignore execution and valuation risk. For investors tracking security and surveillance stocks, the mix of solid profitability, strong board independence and concentrated demand drivers at Codan may warrant closer attention.

Codan’s earnings strength and high P/E hint that the market may be pricing in more than just steady demand for detectors and secure radios. See what the analysis report for Codan reveals about where expectations could be stretched or still conservative.

RADA Electronic Industries (RADA)

Overview: RADA Electronic Industries is a defense technology company that supplies advanced avionics and land based tactical radars to air forces, defense agencies and security customers, covering mission recording, head up displays, UAV electronics and radar systems for border surveillance and counter drone protection.

Market Cap: US$490.9m

RADA Electronic Industries sits right at the point where defense spending, border security and concerns about surveillance meet. Its tactical radar systems and avionics support missions that governments are unlikely to treat as optional, while recent contract wins and guidance underline how future revenue is closely tied to long term defense programs. The stock trades at a high P/E multiple and margins have come under pressure, so a lot rests on management turning strong revenue forecasts and a healthy order book into more consistent profitability. For investors watching how renewed scrutiny of security and surveillance powers could shape spending priorities, RADA offers a focused way to follow that theme, but the full risk reward picture is more nuanced than the headline story suggests.

RADA Electronic Industries sits at the crossroads of rising defense demand and a stretched P/E, which could be masking the real story. See how the analyst forecasts for RADA Electronic Industries lines up with the risk that matters most

The three stocks in this article are only a starting point, and the full Security and Surveillance Technology screener surfaced 34 more companies with financial profiles and narratives that could be just as compelling as these headline stories. Identify the setups that fit your view on surveillance, cybersecurity and monitoring by using Simply Wall St to analyze the catalysts and narratives that matter to you across the full Security and Surveillance Technology screener.

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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.