Related posts

Top Cyber Security Stocks to buy in 2019
Investor Insights

This summary was created by AI, based on 5 opinions in the last 12 months.

Check Point Software Technologies (CHKP) is recognized as a solid player in the cybersecurity domain, often flying under the radar despite its reasonable valuation at a 30x price-to-earnings (PE) ratio. The growth potential for CHKP is significant, particularly given the increasing importance of identity access management amid rising ransomware threats. The overall cybersecurity sector is experiencing robust secular growth, with heightened investments from governments and corporations following the pandemic-induced changes in work environments. However, CHKP faces considerable competition from market leaders such as Palo Alto Networks (PANW) and Fortinet (FTNT), both of which are gaining market share and commanding higher valuations, making the investment landscape more challenging for CHKP. Despite these challenges, there’s a strong argument for the importance of customer retention and the high switching costs associated with cybersecurity solutions, highlighting the ongoing necessity of cybersecurity investments.

Consensus
Hold
Valuation
Fair Value
BUY

A cybersecurity name that flies beneath the radar. A reasonable 30x PE.

WATCH

Growth will come from the fact that identity access management is a huge player because of all the ransomware. Identifies both outside and inside players.

HOLD

This sector has good secular growth, lots of cybersecurity issues, governments are investing a lot. Has done well.

WATCH
PANW vs. FTNT vs. CHKP

He used to own CHKP. Both PANW and FTNT are strong businesses, market leaders in the space and taking market share away from CHKP.

Challenge is that PANW and FTNT are really strong in this industry. Good for the consumer, but may not be good for the businesses in that space. At 46x PE, PANW is really expensive, growth needed to justify that valuation is substantial, high valuation keeps him on the sidelines.

Look at the space as a whole to see if you want to be involved, rather than choosing just one player. Does like the aspect of customer "stickiness" in that once a customer signs up, switching costs are high.

BUY

Cybersecurity has become such an important area. Governments around the world are looking as it. Huge investments in coming years at government and corporate levels. Strong secular growth. Need has increased because, since Covid, people no longer work in just one spot.

BUY ON WEAKNESS

Likes this space (security), but his issue is its valuation. Tech is at highs now, so find a better entry level.

PAST TOP PICK
(A Top Pick Mar 29/23, Up 21%)

In the face of increasing competition, restructured its businesses. Reported extremely good numbers, stuck to guidance. Might explain why PANW selloff today not hurting them as much.

BUY

Next to semiconductors, cybersecurity is one of the great secular growth areas. Hacks are proliferating. Making new highs. An area you have to own for the next several years. 

TOP PICK

IT security solutions provider. Last year, rested on their laurels. Change in management, upped game. His 12-month price target is $151.50. No dividend.

(Analysts’ price target is $138.27)
BUY ON WEAKNESS

In cyber security. Offers stable growth and is well-managed. Doesn't like that they pay no dividend. It's a mature company, good. Low beta. Perhaps buy this in a recession. Prefers this to Palo Alto. 

BUY
Cybersecurity is a very important area to own. Secular growth area. US government is putting a lot of investment in. Lots of room to grow.
PAST TOP PICK
(A Top Pick Dec 10/21, Up 15%) Cybersecurity, one of the really big growth areas in tech. Moving to SaaS, which slowed down growth. New products took some time. Growing earnings in an area that will continue to grow rapidly, especially for corporations and the cloud. Moving offsite increases security issues.
PAST TOP PICK
(A Top Pick Jul 22/21, Up 3%) Cybersecurity is a strong secular growth market. Issues from transition to SaaS and new products. Long run, should see strong revenue and free cashflow growth. Continues to buy here.
PAST TOP PICK
(A Top Pick Jun 17/21, Up 2%) No debt and are increasing free cash flow. Cybersecurity is a good secular growth business among governments and corporations. They're transitioning software as a service which hurt them several quarters ago, but they are creating more products. Trades at 18x earnings.
PAST TOP PICK
(A Top Pick Apr 06/21, Up 25%) Cybersecurity is a big secular growth area. Lots of pressure to make sure telecommunications are secure, especially as people work remotely. He'd buy it here.
Showing 1 to 15 of 48 entries

Check Point Software Tech(CHKP-Q) Rating

Ranking : 4 out of 5

Bullish - Buy Signals / Votes : 3

Neutral - Hold Signals / Votes : 3

Bearish - Sell Signals / Votes : 0

Total Signals / Votes : 6

Stockchase rating for Check Point Software Tech is calculated according to the stock experts' signals. A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.

Check Point Software Tech(CHKP-Q) Frequently Asked Questions

What is Check Point Software Tech stock symbol?

Check Point Software Tech is a American stock, trading under the symbol CHKP-Q on the NASDAQ (CHKP). It is usually referred to as NASDAQ:CHKP or CHKP-Q

Is Check Point Software Tech a buy or a sell?

In the last year, 6 stock analysts published opinions about CHKP-Q. 3 analysts recommended to BUY the stock. 0 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Check Point Software Tech.

Is Check Point Software Tech a good investment or a top pick?

Check Point Software Tech was recommended as a Top Pick by on . Read the latest stock experts ratings for Check Point Software Tech.

Why is Check Point Software Tech stock dropping?

Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.

Is Check Point Software Tech worth watching?

6 stock analysts on Stockchase covered Check Point Software Tech In the last year. It is a trending stock that is worth watching.

What is Check Point Software Tech stock price?

On 2025-03-14, Check Point Software Tech (CHKP-Q) stock closed at a price of $224.39.