Tuesday, January 8, 2019

Check Point Looks Like An Option To Consider In A Shaky Tech Market

Back when I paid more attention to football, my favorite team had a running back about whom I would say “if you need 3 yards, he’ll get you 3.5 yards; if you need 4 yards, he’ll get you 3.5 yards.” I’m reminded of that whenever I look at Check Point (CHKP), as this leading security software vendor continues to hold a strong position in the enterprise security market despite the inroads made by competitors like Palo Alto (PANW) and Fortinet (FTNT) and steady competition from the likes of Cisco (CSCO), as well as new up-and-comers. Check Point is unlikely to ever be a truly impressive growth story again, but the company’s margins, cash flows, and strong installed base have value – particularly in situations where the market has become much more worried about near-term growth prospects and valuation for software.

Check Point looks a little undervalued to me, and the company could benefit from somewhat easier comps in the coming quarters and improving salesforce execution, as well as ongoing growth in its Infinity Total Protection offering. Check Point isn’t going to be immune to an intense or prolonged sell-off in tech stocks, but I think it can hold up better than most and there’s decent underlying long-term value.

Read the full article:
Check Point Looks Like An Option To Consider In A Shaky Tech Market

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