Increasing cybercrimes, such as the SolarWinds hack last year and the Colonial Pipeline incident earlier this year, have created increasing demand for advanced cybersecurity solutions. Notably, technology company Kaseya fell victim to a cyberattack earlier this month. Thus, governments worldwide have been taking measures to fight against cyber hackers. President Biden issued an executive order in May 2021 to improve the country’s cybersecurity threat defense…
Accelerating digitalization has necessitated companies’ increased reliance on cloud-based solutions, making them vulnerable to cyberattacks. Consequently, the demand for cybersecurity solutions is expected to go up in the foreseeable future. According to Grand View Research, the global cybersecurity market is expected to grow at a 10.9% CAGR over the next seven years. Also, investor interest in the cybersecurity industry is evidenced by the First Trust Nasdaq CEA Cybersecurity ETF’s (CIBR) 26.9% returns over the past nine months.
Against this backdrop, we believe it is wise to bet on the shares of established cybersecurity companies Check Point Software Technologies Ltd. (CHKP – Get Rating), Tenable Holdings, Inc. (TENB – Get Rating), and Radware Ltd. (RDWR – Get Rating). They are currently trading below their 52-week highs, but we think have plenty of upside to deliver.
Headquartered in Tel Aviv, Israel, CHKP is a leading provider of cybersecurity solutions for information technology (IT) security worldwide. Its solutions help protect customers from 5th generation cyber-attacks. Its offerings include Check Point Infinity Architecture, Check Point Network Security, and Check Point SandBlast family.
On July 7, 2021, CHKP announced that it was extending its multi-cloud support by integrating Check Point CloudGuard with Alibaba Group Holding Limited’s (BABA) Alibaba Cloud. This integration is expected to expand its consumer base in the cloud security space.
CHKP launched three new management applications—Check Point R81.10 software, Check Point Quantum Maestro 175, and Check Point Quantum Smart-1 Security—on June 28, 2021, to provide advanced protection for complex hybrid data centers with brisk operations and an ultra-scalable platform. With increasing digitization, the company could witness increasing demand for its solutions as several companies adopt cybersecurity solutions to protect themselves from cyberattacks.
CHKP’s total revenue increased 4.3% year-over-year to $507.60 million in the first quarter ended March 31, 2021. Its non-GAAP operating income grew 6.5% year-over-year to $246.30 million, while its non-GAAP net income improved 2.6% year-over-year to $211.20 million. The company’s non-GAAP EPS increased 8.5% year-over-year to $1.54.
A $7.21 consensus EPS estimate for its fiscal year 2022 represents a 6.5% improvement year-over-year. CHKP has surpassed the Street’s EPS estimates in each of the trailing four quarters. The company’s $523.77 million consensus revenue estimate for the quarter ended June 30, 2021, represents a 3.6% increase from the same period last year.
The stock has gained 2.6% over the past month to close Friday’s trading session at $122.19. However, CHKP is currently trading 12.3% below its 52-week high of $139.26, which it hit on December 29, 2020.
CHKP’s POWR Ratings reflect the promising outlook. The company has an overall B rating, which translates to Buy in our proprietary ratings system. The POWR Ratings access stocks by 118 different factors, each with its own weighting.
CHKP is rated an A for Quality, and a B for Value. Within the Software – Security industry, it is ranked #6 of 25 stocks. To see additional POWR Ratings for Growth, Sentiment, Stability, and Momentum for CHKP, click here.
Cybersecurity solutions company TENB serves more than half of the Fortune 500 companies. Its platforms include Tenable.io, a cloud-delivered software as a service, and Tenable.sc, an on-premises solution. TENB is based in Columbia, Md.
TENB partnered with CyberNB’s Critical Infrastructure Security Operations Center on June 10 to increase the resilience and security of Canada’s critical infrastructure. This partnership is expected to expand the company’s market reach in Canada.
TENB partnered with Deloitte in June to…
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