CHKP Should I Buy
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Check Point Software Technologies Ltd (CHKP) is not a strong buy for a beginner, long-term investor at this moment. While the company has shown positive financial growth in its latest quarter, the technical indicators suggest a bearish trend, and the lack of strong positive catalysts or proprietary trading signals further weakens the case for immediate investment. The investor may consider waiting for a clearer uptrend or more favorable conditions.
The technical indicators for CHKP are bearish. The MACD histogram is negative and expanding, RSI indicates an oversold condition at 18.701, and moving averages are bearish (SMA_200 > SMA_20 > SMA_5). The stock is trading near its support level of 142.929, with resistance levels at 149.202 and 155.474. Overall, the stock is in a downtrend.
The company's Q4 financials showed strong growth: Revenue increased by 5.85% YoY, Net Income grew by 18.25% YoY, and EPS increased by 21.65% YoY. Analysts note that the company is focusing on accelerating subscription revenue growth, which could provide a foundation for long-term growth.
Hedge funds are selling, with a 135.15% increase in selling activity over the last quarter. Analysts have lowered price targets across the board, citing mixed Q4 results and execution risks in the company's cultural shift towards growth. Technical indicators are bearish, and the stock lacks recent positive news or significant institutional buying.
In Q4 2025, CHKP reported revenue of $744.9M, up 5.85% YoY. Net income increased to $304.5M, up 18.25% YoY, and EPS rose to 2.81, up 21.65% YoY. However, gross margin slightly dropped to 86.84%, down -0.38% YoY.
Analysts are mixed to neutral on CHKP. While some firms maintain Outperform ratings, most have lowered price targets due to mixed Q4 results and execution risks. The current price targets range from $165 to $210, with a general consensus that growth reacceleration is still a work in progress.
