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 closed the day down 0.6%. By the end of trading, Check Point Software Technologies rose $0.52 (1.1%) to $49.92 on light volume. Throughout the day, 1,019,700 shares of Check Point Software Technologies exchanged hands as compared to its average daily volume of 2,205,600 shares. The stock ranged in a price between $48.92-$50.06 after having opened the day at $49.38 as compared to the previous trading day's close of $49.40. Other companies within the Computer Software & Services industry that increased today were: Perfect World ( PWRD), up 13.9%, Mitek Systems ( MITK), up 8.6%, Active Network ( ACTV), up 7.4% and Tangoe ( TNGO), up 6.2%.
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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 $9.8 billion and is part of the technology sector. The company has a P/E ratio of 16.4, below the S&P 500 P/E ratio of 17.7. Shares are up 3.4% year to date as of the close of trading on Tuesday. Currently there are 12 analysts that rate Check Point Software Technologies a buy, no analysts rate it a sell, and 8 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, expanding profit margins and good cash flow from operations. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

On the negative front, Intelligent Systems ( INS), down 11.6%, Bridgeline Digital ( BLIN), down 9.2%, Top Image Systems ( TISA), down 8.4% and Helios and Matheson Analytics ( HMNY), down 6.9% , were all laggards within the computer software & services industry with Automatic Data Processing ( ADP) 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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