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

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 higher today making it today's featured computer software & services winner. The industry as a whole was unchanged today. By the end of trading, Check Point Software Technologies rose 63 cents (1.5%) to $42.85 on heavy volume. Throughout the day, 6.5 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 a price between $42.31-$43.49 after having opened the day at $42.51 as compared to the previous trading day's close of $42.22. Other companies within the Computer Software & Services industry that increased today were: BOS Better Online Solutions ( BOSC), up 20.7%, Chyron Corporation ( CHYR), up 7%, Wireless Ronin Technologies ( RNIN), up 7%, and China Mobile Games and Entertainment Group ( CMGE), up 6.9%.
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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 $8.65 billion and is part of the technology sector. The company has a P/E ratio of 14.9, above the average computer software & services industry P/E ratio of 14.5 and below the S&P 500 P/E ratio of 17.7. Shares are down 20.6% year to date as of the close of trading on Monday. Currently there are 12 analysts that rate Check Point Software Technologies a buy, no analysts rate it a sell, and nine 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, notable return on equity, reasonable valuation levels and impressive record of earnings per share growth. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

On the negative front, Analysts International ( ANLY), down 9.8%, THQ ( THQI), down 9.4%, Webmedia Brands ( WEBM), down 7.2%, and Wave Systems Corporation ( WAVX), down 7.1%, were all laggards within the computer software & services industry with Infosys ( INFY) being today's computer software & services industry laggard.

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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