Post Content
Geopolitical flare-ups in the Middle East have pushed investors toward defensive tech names that can weather market volatility and sustain corporate spending. During these jittery stretches, cybersecurity and enterprise-software firms often shine because their services stay mission-critical even when budgets tighten.
Amid this turmoil, Webush has spotlighted 10 tech stocks to own. Among those picks, Check Point Software Technologies (CHKP) emerges as a little-known but important contender. Analysts at Wedbush Securities flagged CHKP as “well positioned,” noting the company’s push to build a competitive suite across SASE, ERM, and its E-Mail Harmony offering. Wedbush also sees AI as an accelerating driver of deal flow for Check Point, helping the firm win defensive enterprise spending.
-
Why the Charts Say It Might Be Time for a Big Short on Google Stock
-
As Analysts Call for Brent Crude to Hit $120, Here Are the 3 Top-Rated Oil Stocks to Buy Now
-
The VIX Spikes as Investors Panic: 3 ETFs to Trade Market Fear Now
For investors seeking a relatively stable tech play with clear cybersecurity and AI tailwinds amid geopolitical risk, CHKP is a name worth a closer look.
Based in Tel Aviv, Check Point Software is a global cybersecurity firm. It provides hardware and cloud-based software solutions, including firewalls, threat prevention, and endpoint protection, that help enterprises and governments defend digital networks. With a $2.7 billion-plus annual revenue base and high margins, Check Point has long targeted large organizations and service providers.
Check Point has been active on the M&A front, as in Q1 2026, it announced agreements to acquire three cybersecurity startups. These include Cyata AI/governance security, Cyclops, and Rotate. The deals totaling over $150 million expand its AI security and managed services capabilities. Plus, just a few days ago, Check Point also launched a Secure AI Advisory Service to help enterprise clients govern and scale AI projects. These moves signal management’s push into fast-growing AI and cloud-security niches.
Valued at around $17.5 billion by market cap, CHKP shares have underperformed in 2025 and early 2026. The stock is down roughly 26% over the last 52 weeks and around 12% year-to-date (YTD). This slide reflects mixed Q4 earnings and cautious 2026 guidance, which sent the stock tumbling on earnings day. The share price fell about 6% immediately after the Q4 report. Plus, the broad tech-sector weakness has also weighed on Check Point’s shares, as investors fret over slower growth. Still, the pullback leaves CHKP trading well below its 52-week high, making some analysts argue it now offers value for the risk.
Following the pullback, Check Point doesn’t look overly expensive. While the P/E is 19, which is attractive compared to the sector median of 30, its price-to-sales ratio is notably high at 7, suggesting some overvaluation relative to peers. In other words, Check Point’s valuation is moderate, cheaper than hypergrowth cyber names, yet not bargain-basement cheap by consumer tech standards.
Just a few days ago, Wedbush named Check Point among its top “must-own” tech stocks during the Iran/Middle East conflict. The firm noted that cybersecurity and defense-related companies can offer stability when tensions rise. That bullish nod contrasts with the recent market pullback on CHKP’s mixed guidance.
In fact, when Check Point warned in Q1 and trimmed its revenue outlook, the stock sold off sharply. Wedbush’s endorsement may help restore investor confidence, however. In short, analysts see Check Point as a defensive play; it has steady subscription sales and R&D investment in AI security, which could gain from heightened demand during crises.
Check Point’s latest quarterly report showed solid year-over-year (YoY) growth, yet missed the analyst estimate on the top line. Total revenue was $745 million, up 6% from a year ago. Of that, roughly $325 million came from recurring security subscriptions, up 11% YoY, underscoring steady demand.
The good part is that net income and EPS both jumped. EPS came in at $2.81, marking a 22% increase YoY. Plus, operating margins held strong at 31% on a GAAP basis.
CEO Nadav Zafrir commented, “We delivered solid fourth quarter results, with revenue landing above the midpoint of our outlook and EPS exceeding expectations.” He noted broad customer adoption of Check Point’s security platforms and a focus on “AI-driven security” going forward.
The company generated healthy cash flows as well. During the year, Check Point repurchased about $1.4 billion of stock and ended 2025 with roughly $4.3 billion in cash and marketable securities. Free cash flow remained strong, supporting both acquisitions and returns to shareholders.
Looking ahead, for Q1 2026, management guided conservatively with revenue of $655 million to $685 million and EPS of $2.35 to $2.45. They project full-year 2026 EPS of $10.05 to $10.85. Analysts’ consensus is around $8.61 EPS for 2026, implying Check Point sees a sizable beat. The tempered guidance reflects expected investments and some slowing of enterprise spending. CFO Ygal Elbaz noted on the call that tighter spending in certain markets could weigh temporarily, but he emphasized that Check Point’s broad product portfolio, network, cloud, IoT security, etc, positions it well for long-term growth.
Wall Street’s take on CHKP is mixed but skewing neutral-to-bullish. Wedbush’s Dan Ives kept an “Outperform” rating, making Check Point a “must-own” defense/security pick, with a $210 price target.
By contrast, Morgan Stanley recently trimmed its outlook. It cut CHKP’s target to $193, citing slower growth and margin pressures. Goldman Sachs also eased off: it lowered its target to $186 while maintaining a “Hold” rating after the quarter.
On the bullish side, BMO Capital and TD Cowen continue to rate CHKP “Outperform” with targets around $210 to $260, arguing that Check Point’s balance sheet and security DNA justify a premium.
Overall, the consensus among 36 analysts is “Moderate Buy” and 12-month price targets average around $204, implying a healthy 25% upside from current levels.
On the date of publication, Nauman Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com
Terms and Privacy Policy