Check Story

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CHKP -- USA Stock  

USD 120.22  0.46  0.38%

It looks like FireEye will be up for a correction way faster as its share price whent up 3.00% today to Check Point's 0.5737%. While some baby boomers are getting worried about technology space, we are going to recap both, Check Point and FireEye as potential short-term investments. We are going to focus on some of the competitive aspects of both Check and FireEye.
Published over a month ago
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Will Check Point (NASDAQ:CHKP) insiders shift to FireEye (NASDAQ:FEYE)?
By analyzing existing forward-looking signals between Check Point and FireEye, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in FireEye with a short position in Check Point. Check out our pair correlation module for more information.

Let's begin by analyzing the assets. The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Check Point has an asset utilization ratio of 142.4 percent. This suggests that the company is making $1.42 for each dollar of assets. An increasing asset utilization means that Check Point Software is more efficient with each dollar of assets it utilizes for everyday operations.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two companies, such as Check or BlackBerry is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.

How important is Check Point's Liquidity

Check Point financial leverage refers to using borrowed capital as a funding source to finance Check Point Software ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Check Point financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Check Point's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions. It is good to see analyst projects for Check Point, but it might be worth checking our own buy vs. sell analysis

Correlation Between Check and BlackBerry Limited

In general, stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Check Point together with similar or unrelated positions with a negative correlation. For example, you can also add BlackBerry to your portfolio. If BlackBerry is not perfectly correlated to Check Point it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Check Point for example, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down. Please check pair correlation details between CHKP and BB for more information.

Note

Are you currently holding both Check Point and BlackBerry in your portfolio? Please note if you are using this as a pair-trade strategy between Check Point and BlackBerry, watch out for correlation discrepancy over time. Relying on the historical price correlations and assuming that it will not change may lead to short-term losses.

A Deeper Perspective On Check Point

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

Revenue Breakdown

Now, let's check Check Point revenue. Based on the latest financial disclosure, Check Point Software reported 2.03 B of revenue. This is 50.19% lower than that of the Technology sector and significantly higher than that of the Software?Infrastructure industry. The revenue for all United States stocks is 78.48% higher than that of Check Point Software. As for FireEye we see revenue of 915.62 M, which is much higher than that of the Software?Infrastructure

Check2.03 Billion
Sector0.0
FireEye915.62 Million
B
Check
Sector
915.6 M
FireEye

Possible November recoup of Check?

Recent Risk Adjusted Performance is up to 0.06. Price may decline again. Check Point Software has relatively low volatility with skewness of -0.43 and kurtosis of 1.11. However, we advise all investors to independently investigate Check Point Software to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns.

Our Conclusion on Check Point

Although some other companies under the software?infrastructure industry are still a bit expensive, Check Point may offer a potential longer-term growth to insiders. To sum up, as of the 21st of October 2020, our analysis shows that Check Point moves indifferently to market moves. The firm is overvalued and projects very small odds of distress for the next 2 years. Our primary 30 days recommendation on the firm is Hold.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Gabriel Shpitalnik do not own shares of Check Point Software. Please refer to our Terms of Use for any information regarding our disclosure principles.

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