This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

CHKP: Buy the Market's Overreaction

NEW YORK ( TheStreet) -- It never ceases to amaze me to see just how inconsistent investors really are when it comes to either offering a standing ovation or applying punishment to stocks based on their earnings results. It seems lately that Wall Street has an unspoken set of standards applied to some stocks that are not required for others.

Embarrassingly, this is something (although not new) that I probably will never get use to: how does one conduct comparable or relative analysis based on factors that may or may not matter to analysts? Sometimes this can be catastrophic for investors.

Some stocks can get away with reporting results that were considered "less bad" while others get hammered for missing the slightest of expectations -- even to the upside. Remarkably this happens consistently with companies that are within the same sector. Fairly or unfairly, this is where enterprise security company Check Point Software (CHKP - Get Report) finds itself after a post-earnings selloff that saw the stock plummet to new 52-week lows, whereas rival Juniper (JNPR - Get Report) saw its stock rise after posting results that were merely "not as bad as expected."

Double-Checking the First-Quarter

For the period ending in March, the company reported earnings of $143.6 million, or 68 cents per share -- topping the $122.1 million, or 57 cents per share it reported in the same period a year earlier. Adjusted earnings excluding stock compensation expenses and other items arrived at 74 cents a share, while analysts polled by FactSet were expecting earnings of 72 cents a share. Revenue grew 11% to $313.1 million from $281.3 million also topping analysts' expectations of $312.9 million.

Follow TheStreet on Twitter and become a fan on Facebook.
1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
CHKP $80.77 0.00%
CSCO $28.42 0.00%
JNPR $28.42 0.00%
AAPL $121.30 0.00%
FB $94.01 0.00%

Markets

Chart of I:DJI
DOW 17,689.86 -56.12 -0.32%
S&P 500 2,103.84 -4.79 -0.23%
NASDAQ 5,128.2810 -0.5040 -0.01%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs