Check Point’s Cloud is Growing

CHKP develops and sells information technology security solutions. The Israel-based company is benefiting from strong adoption of its cloud security solutions, which help companies with network security, cloud security management, application security, and access control. The inclusion of AI and post-quantum encryption into its latest offerings is helping Check Point customers prepare for future technology advancements.

Earnings-wise, CHKP’s fourth-quarter 2024 report showed quarterly revenue of $704 million and annual revenue of nearly $2.6 billion, both of which surpassed expectations, and non-GAAP per-share earnings of $2.70 for the quarter and $9.60 for the year (a 9% year-over-year jump). The company bought back $325 million of its shares in the fourth quarter and $1.3 billion for the entire year. With significant uptake in its latest cloud solutions, CHKP is looking to grow its business globally.

It’s no wonder CHKP shares are up 24% this year – and they could rise more. MAPsignals data shows how Big Money investors are betting heavily on the forward picture of the stock.

Big Money Buying Up Check Point Shares

Institutional volumes reveal plenty. In the last year, CHKP has enjoyed strong investor demand, which we believe to be institutional support.

Each green bar signals unusually large volumes in CHKP shares. They reflect our proprietary inflow signal, pushing the stock higher:

Plenty of technology names are under accumulation right now. But there’s a powerful fundamental story happening with Check Point.

Check Point Fundamental Analysis

Institutional support and a healthy fundamental backdrop make this company worth investigating. As you can see, CHKP has had strong earnings growth, little debt, and solid profits:

• 3-year earnings growth rate (+7.7%)
• Debt/equity ratio (+1.1%)
• Profit margin (+33%)

Source: FactSet

Also, EPS is estimated to ramp higher this year by +9.4%.

Now it makes sense why the stock has been powering to new heights. CHKP has a track record of strong financial performance.

Marrying great fundamentals with our proprietary software has found some big winning stocks over the long term.

Check Point has been a top-rated stock at MAPsignals. That means the stock has unusual buy pressure and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.

It’s made the rare Top 20 report multiple times in the last year. The blue bars below show when CHKP was a top pick…sending shares higher:

Tracking unusual volumes reveals the power of money flows.

This is a trait that most outlier stocks exhibit…the best of the best. Big Money demand drives stocks upward.

Check Point Price Prediction

The CHKP rally isn’t new at all. Big Money buying in the shares is signaling to take notice. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio.

Disclosure: the author holds no position in CHKP at the time of publication.

If you are a Registered Investment Advisor (RIA) or are a serious investor, take your investing to the next level, learn more about the MAPsignals process here.