As organizations’ dependence on virtual work environments grows, as does their adoption of cloud-based platforms as part of their digital transformation, the need to protect sensitive data and prevent cyberattacks has become…
extremely important. According to the World Economic Forum’s Global Risks Report 2021, cyber risks continue to rank high on the world’s list of threats.
Therefore, several organizations are increasing their cybersecurity spending. Global cybersecurity cumulative spending is expected to exceed $1.75 trillion by for the five-year period 2021 -2025. The cybersecurity market is expected to reach $199.9 billion by 2028, registering a CAGR of 10.5%.
Given this backdrop, we think it could be wise to bet on cybersecurity stocks Check Point Software Technologies Ltd. (CHKP – Get Rating), Trend Micro Incorporated (TMICY – Get Rating), and Radware Ltd. (RDWR – Get Rating), which possess strong growth prospects.
Headquartered in Tel Aviv, Israel, CHKP is a global provider of cyber security solutions to governments and corporate enterprises. The company protects its customers from 5th generation cyber-attacks with a catch rate of malware, ransomware, and other attacks. CHKP also offers a multilevel security architecture to defend enterprises’ cloud, network, and mobile device-held information.
This month, CHKP launched Check Point Mind, a knowledge training portal, in collaboration with more than 200 training partners. Through it, Check Point Mind customers, including cybersecurity professionals, can access knowledge and develop skills on cybersecurity.
CHKP’s total revenues increased 4.9% year-over-year to $534 million in the third quarter, ended September 30, 2021. The company’s operating income came in at $261.3 million. Its net income amounted to $219.8 million. Also, the company’s EPS grew 0.6% from the year-ago value to $1.65.
Analysts expect CHKP’s revenue for the fiscal year 2021 to increase 4.3% year-over-year to $2.15 billion. The company has an impressive earnings surprise history; it beat the consensus EPS estimates in each of the trailing four quarters. Its EPS is estimated to grow 5.8% next year.
CHKP’s strong fundamentals are reflected in its POWR Ratings. The stock has an overall B rating, which equates to Buy in our proprietary rating system. The POWR Ratings assess stocks by 118 distinct factors, each with its own weighting.
Also, the stock has an A grade for Quality, and a B grade for Value. We have also graded CHKP for Stability, Sentiment, Momentum, and Growth. Click here to access all CHKP’s ratings.
CHKP is ranked #4 of 27 stocks in the Software – Security industry.
Headquartered in Tokyo, Japan, TMICY develops and sells security-related software for computers. The company’s products include personal computer (PC) client products, local area network (LAN) server products, integrated products, and others. TMICY also offers hybrid cloud security solutions and network security solutions, including intrusion prevention and threat protection solutions.
In August, TMICY launched its…
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