Check Point Software Technologies Ltd. (CHKP): Today's Featured Computer Software & Services Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Check Point Software Technologies ( CHKP) pushed the Computer Software & Services industry lower today making it today's featured Computer Software & Services laggard. The industry as a whole closed the day up 0.3%. By the end of trading, Check Point Software Technologies fell 49 cents (-1%) to $46.43 on average volume. Throughout the day, 2.4 million shares of Check Point Software Technologies exchanged hands as compared to its average daily volume of 2.6 million shares. The stock ranged in price between $46.05-$47.36 after having opened the day at $46.84 as compared to the previous trading day's close of $46.92. Other companies within the Computer Software & Services industry that declined today were: China Mobile Games and Entertainment Group ( CMGE), down 11.5%, American Reprographics Company ( ARC), down 6.2%, Camelot Information Systems ( CIS), down 5.5%, and NCI ( NCIT), down 5.4%.
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Check Point Software Technologies Ltd. develops, markets, and supports a range of software, and combined hardware and software products and services for information technology (IT) security worldwide. Check Point Software Technologies has a market cap of $9.68 billion and is part of the technology sector. The company has a P/E ratio of 27.2, above the average computer software & services industry P/E ratio of 16.9 and above the S&P 500 P/E ratio of 17.7. Shares are down 11.1% year to date as of the close of trading on Tuesday. Currently there are 14 analysts that rate Check Point Software Technologies a buy, no analysts rate it a sell, and eight rate it a hold.

TheStreet Ratings rates Check Point Software Technologies as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, impressive record of earnings per share growth, compelling growth in net income and reasonable valuation levels. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

On the positive front, Vringo ( VRNG), up 39.2%, Kingtone Wirelessinfo Solution ( KONE), up 10.6%, icad ( ICAD), up 10.3%, and TigerLogic Corporation ( TIGR), up 9.6%, were all gainers within the computer software & services industry with Salesforce.com ( CRM) being today's featured computer software & services industry leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the computer software & services industry could consider iShares S&P NA Tech Software Idx ( IGV) while those bearish on the computer software & services industry could consider ProShares Ultra Short Technology ( REW).

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