#8 - Check Point Software (NASDAQ:CHKP)
Check Point Software (NASDAQ: CHKP) If you're willing to look at the technology sector for low-risk stocks (and there's no reason why you shouldn't), Check Point Software is a good place to start. Looking for predictable revenue? CHKP made a decision to focus on subscription sales of its products and services. This was groundbreaking at the time but has quickly become the industry standard. The model continues to show signs of paying off with subscription sales and the recurring revenue from those sales rising by 27% to $118 million in the second quarter. This was in addition to over $200 million in revenue from their other core business of servicing and updates. Put together, this two-pronged strategy accounted for 70% of their top line growth. Not only does this business model help drive an increase in revenue, but it also reduces overhead costs. Whereas many competitors in this space can spend nearly half their revenue on sales efforts, Check Point's expenses in the second quarter were just 25% of total revenue. This combination of growing revenue and reduced expenses are showing up in their earnings per share (EPS) that increased to $1.12 in the last quarter – an 18% increase.
About Check Point Software Technologies
Check Point Software Technologies Ltd. develops, markets, and supports a range of products and services for IT security worldwide. The company offers a multilevel security architecture, cloud, network, mobile devices, endpoints information, and IOT solutions. It provides Check Point Infinity Architecture, a cyber security architecture that protects against fifth generation cyber-attacks across various networks, endpoint, cloud, workloads, Internet of Things, and mobile.
Read More - Current Price
- $181.75
- Consensus Rating
- Hold
- Ratings Breakdown
- 8 Buy Ratings, 15 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $197.74 (8.8% Upside)
