After A Strong Run, Check Point Doesn't Look Like A Bargain

I've had a lot of respect for Check Point (NASDAQ:CHKP) for a long time, and the company's less impressive growth rates (and emphasis on margins) compared to Palo Alto (NYSE:PANW) and Fortinet (NASDAQ:FTNT) have created a few buying opportunities over the years. Buying opportunities emerged three times since mid-2015, with the latest run taking the shares up about 50% on renewed evidence that Check Point can still, in fact, generate pretty good revenue growth.

I keep Check Point on my watch list to take advantage of those pullbacks but right now doesn't look like one of those opportunities. I think the company can generate high single-digit long-term FCF growth from here, and I think the opportunities in cloud and mobile are still meaningful, but I want more than the high single-digit return that seems to be figured into today's valuation.

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After A Strong Run, Check Point Doesn't Look Like A Bargain