Network Security: A Look At Check Point

The Internet is not going anywhere and the demand for security is on the rise, which is great news for companies such as Check Point Software Technologies (CHKP). They've been in this line of work for more than a decade offering clients a full portfolio of security solutions. Some of the most innovative products were designed and released by them, consolidating their reputation as a company that thinks outside of the box and supplies its customers with reliable applications. The stock price is quickly approaching the psychological limit of $50 per share, and there are positive signs that it will cross the threshold.

Fundamentals
The most recent products released by the company are 600 Appliances and 1100 Appliances are aimed at small businesses and enterprises. Both have enjoyed tremendous success, just as the previous releases and it is only fair to say that Check Point has a reputation for excellence. The number of cyber crimes and scam attempts is on the rise and so is the demand for solutions to fight them, and this directly benefits the company that is at the forefront of developing such solutions.

Check Point has a higher revenue growth and margins if compared to industry average and it generates superior ROA and ROE. These days it is just as important for a company to have a strong operating cash flow and with more than $900 million, Check Point is way above average. With the total cash inching closer to 1.4 billion and no debt whatsoever they have sufficient resources and room to maneuver, in case they decide to spend more on researching new products. Binary options traders should base their decision of purchasing call options on the fact that Check Point is undervalued right now. It's impressive EPS growth and the equally formidable ROE are the best arguments for proving this point.


A Look At Direct Competitors
Fortinet (FTNT) and Juniper Networks (JNPR) are two of the companies who threatened to overthrow Check Point as market leaders, by offering slightly cheaper services. Both promised to address the same underlying issues and turn the network environment into a safer space. Fortinet shines when it comes to integrated security and has an excellent revenue growth, significantly better than the industry standard.

Juniper Networks’ strong point is providing clients with state-of-the-art network infrastructure solutions and appears to have a slight edge over Check Point in this area. Its market cap of $8.8 billion and its revenue peaked two and a half years ago but its profit margin is considerably lower than Check Point’s. Binary options traders should keep an eye on these two closest competitors as both companies have serious growth potential, but right now call options should be purchased for Check Point.