Check Point $CHKP

There are a lot of bad guys online!

Check Point Software Technologies is a pure-play cybersecurity vendor. The company offers solutions for network, endpoint, cloud, and mobile security in addition to security management. Check Point, a software specialist, sells to enterprises, businesses, and consumers. At the end of 2019, 46% of its revenue was from the Americas, 42% from Europe, and 11% from Asia-Pacific, Middle East, and Africa. The firm, based in Tel Aviv, Israel, was founded in 1993 and has about 5,000 employees.

Check Point also offer a VPN service which has seen a 7 fold increase in traffic during the recent pandemic. Demand for their technical services increased 20% due to the volume of staff working from home.

So why do I like Check Point? Well, apart from the above the financials look solid.

They are currently running a gross margin of 89% and net earnings are at an impressive 41%. There is no debt, with turnover, profits and EPS increasing year on year. Cost of sales and R&D have remained steady of the last 7 years. One of the biggest positives is the sheer amount of stock they are buying back year on year. They seem determined to reduce shares in circulation which, in theory, will push the share price up.

Check Point weren't immune to the recent drop in stock prices falling from $119 down to $80. It is currently trading at $106.

With the solid financials and the increased demand in services I can see the stock price surpassing the high of $119 over the next few months. I believe the demand for their services will continue to increase as businesses adjust to the world post covid 19. As I stated in my Zoom blog, a lot of businesses are adopting a work from home policy on a rotating system with staff. This will keep the demand up for cybersecurity solutions in the foreseeable future.

You can invest in Check Point from as little as £1 with Trading212

I currently hold a position in Check Point. This is not investment advice and purely my opinion of the company.


Recent Posts

See All

©2020 by FollowMyTrades

Caution: This website is for educational purposes only. Trading involves the possibility of financial loss. Only trade with money that you are prepared to lose, you must recognise that for factors outside your control you may lose all of the money in your trading account. Many brokers also hold you liable for losses that exceed your trading capital. So you may stand to lose more money than is in your account. takes no responsibility for loss incurred as a result of you copying our trades. By signing up as a member you acknowledge that we are not providing financial advice and that you are making the decision to copy our trades on your own account. We have no knowledge on the level of money you are trading with or the level of risk you are taking with each trade. You must make your own financial decisions, we take no responsibility for money made or lost as a result of our ideas we share  on forex or stock market related products on this website, email or other electronic means. Past performance does not guarantee future results. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% of retail investor accounts lose money when trading CFDs with eToro. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. eToro is authorised  and regulated by the FCA.We are not authorised to provide financial advice. By continuing to remain on our website you agree that you have read and agree to the Terms and conditions.

Privacy Policy