Check Story

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CHKP -- USA Stock  

USD 111.24  1.81  1.60%

In general, we focus on analyzing Check (NASDAQ:CHKP) price patterns and their correlations with different microeconomic environment and drivers. We also apply predictive analytics to build Check Point Software daily price indicators and compare them against related drivers. Today's article will recap Check Point. We will evaluate why we are still confident in anticipation of a recovery.
Published over two weeks ago
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Volatility may be your only friend when it comes to investing in Check Point
Macroaxis provides advice on Check Point Software to complement and cross-verify current analyst consensus on Check Point Software. Our investment recommendation engine determines the company's potential to grow exclusively from the perspective of an investor's current risk tolerance and investing horizon. The company has Profit Margin (PM) of 41.47 %, which can signify that it executes well on its competitive strategies and has good control over its expenditures. This is very large. Similarly, it shows Operating Margin (OM) of 44.12 %, which suggests for every 100 dollars of sales, it generated a net operating income of 0.44.
The successful prediction of Check Point stock price could yield a significant profit to investors. But is it possible? The efficient-market hypothesis suggests that all published stock prices of traded companies, such as Check Point Software, already reflect all publicly available information. This academic statement is a fundamental principle of many financial and investing theories used today. However, the typical investor usually disagrees with a 'textbook' version of this hypothesis and continually tries to find mispriced stocks to increase returns. We use internally-developed statistical techniques to arrive at the intrinsic value of Check Point based on Check Point hews, social hype, general headline patterns, and widely used predictive technical indicators.
We also calculate exposure to Check Point's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Check Point's related companies.

Use Technical Analysis to project Check expected Price

Check Point technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.
A focus of Check Point technical analysis is to determine if market prices reflect all relevant information impacting that market. A technical analyst looks at the history of Check Point trading pattern rather than external drivers such as economic, fundamental, or social events. It is believed that price action tends to repeat itself due to investors' collective, patterned behavior. Hence technical analysis focuses on identifiable price trends and conditions. More Info...

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

A Deeper Perspective On Check Point

The modest gains experienced by current holders of Check Point could raise concerns from insiders as the firm it trading at a share price of 134.10 on 1,794,300 in volume. The company directors and management have been quite successful in maneuvering the stock at opportune times to take advantage of all market conditions in January. The stock standard deviation of daily returns for 30 days investing horizon is currently 1.73. The below-average Stock volatility is a good sign for longer-term investment options and for buy-and-hold investors.
 2018 2019 2020 2021 (projected)
Cost of Revenue201.4 M215.4 M247.71 M237.99 M
Consolidated Income821.3 M825.7 M949.55 M892.86 M

Deferred Revenue Breakdown

Check Point Deferred Revenue yearly trend continues to be very stable with very little volatility. Deferred Revenue is likely to drop to about 1.4 B. Deferred Revenue usually refers to a component of Total Liabilities representing the carrying amount of consideration received or receivable on potential earnings that were not recognized as revenue; including sales; license fees; and royalties; but excluding interest income. Check Point Deferred Revenue is very stable at the moment as compared to the past year. Check Point reported last year Deferred Revenue of 1.59 Billion
2014
2015
2016
2017
2018
2019
2020
2021
2014784.01 Million
2015905.78 Million
20161.07 Billion
20171.19 Billion
20181.34 Billion
20191.39 Billion
20201.59 Billion
20211.36 Billion

Check technical analysis suggests possible bounce back

Maximum drawdown is down to 8.47. It may hint at a possible volatility decline. Check Point Software has relatively low volatility with skewness of 0.48 and kurtosis of 0.2. 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.

The Bottom Line

Although some firms within the software?infrastructure industry are still a little expensive, even after the recent corrections, Check Point may offer a potential longer-term growth to insiders. While some insiders may not share our view we believe it may be a good time to exit Check as the risk-reward trade off is not appealing enough to hold a position. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Check Point.

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 Raphi 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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