Check Point Software Technologies Ltd. (CHKP): Today's Key Contributor To Sector Gains

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 Technology sector higher today making it today's featured technology winner. The sector as a whole closed the day down 0.6%. By the end of trading, Check Point Software Technologies rose 63 cents (1.4%) to $46.26 on heavy volume. Throughout the day, 3.3 million shares of Check Point Software Technologies exchanged hands as compared to its average daily volume of 2.1 million shares. The stock ranged in a price between $44.41-$46.48 after having opened the day at $45 as compared to the previous trading day's close of $45.63. Other companies within the Technology sector that increased today were: Innovative Solutions and Support ( ISSC), up 27.2%, NII Holdings ( NIHD), up 20.7%, Dataram Corporation ( DRAM), up 17.9%, and eOn Communications Corporation ( EONC), up 16.9%.
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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 $9.01 billion and is part of the computer software & services industry. The company has a P/E ratio of 15.3, below the S&P 500 P/E ratio of 17.7. Shares are down 4.2% year to date as of the close of trading on Thursday. 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, notable return on equity, attractive valuation levels and growth in earnings per share. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

On the negative front, Deltathree ( DDDC), down 30%, Radware ( RDWR), down 22.6%, F5 Networks ( FFIV), down 19%, and Authentidate Holding Corporation ( ADAT), down 10.7%, were all laggards within the technology sector with Automatic Data Processing ( ADP) being today's technology sector laggard.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the technology sector could consider Technology Select Sector SPDR ( XLK) while those bearish on the technology sector could consider ProShares Ultra Short Technology ( REW).

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