Check Point Software Technologies Ltd  (CHKP) Trade Now »     Rate CHKP  -  Discuss CHKP  -  Add to Watch List        

CHKP is undervalued, looking only at valuation relative to its industry.

* CHKP has a Projected P/E of 11.96
* CHKP's Industry (Security Software & Services) has an average Projected P/E of 15.81
* Implies a Projected Stock Price of $30.67

* CHKP has a projected earnings growth rate of 10.77%
* CHKP has a PEG of 1.11
* CHKP's Industry (Security Software & Services) has an average Projected PEG of 6.05
* Implies a Projected Stock Price of $126.45 (Very large. Market not giving credibility to earnings growth estimate)

Source of the analysis and cal

Most of the tech stocks are having trouble making new highs. Doesn't mean they are bearish just yet, tops take a while to form and finish. But I'm playing a short term counter-trend short here.

Shares of both Ariba (ARBA) and Omniture (OMTR) are down sharply this morning after RBC Capital’s Robert Breza cut his rating on the stocks to Sector Perform from Outperform.

The downgrades were part of a larger call on enterprise software stocks. Breza asserted this morning that “industry checks continue to show further deterioration in overall enterprise spending as uncertainty into 2009 and beyond weights heavily on many executives’ minds.” Breza writes that “while December has traditionally been a back-end loaded, budget-flush quarter, demand through New Year’s will likely be influenced

Check Point Software (CHKP) posted Q3 revenue of $199.7 million and profits of 44 cents a share, close to Street estimates of $200.1 million and 43 cents.

For Q4, the security software company sees revenue of $209 million to $228 million, with non-GAAP profits of 45-51 cents a share; the Street has been expecting $218.6 million and 48 cents.

Meanwhile, CEO Gil Shwed said the company does not have any plans for layoffs.

CHKP today is up 66 cents, or 3.8%, to $18.17.

It’s another rough morning for software stocks - and there could be more difficult day ahead.

Analysts at both Deutsche Bank and RBC Capital this morning downgraded a bunch of software stocks due to concerns about the deterioration of IT spending. Here’s the lowdown on the their moves:

• Deutsche Bank’s Todd Raker this morning said data from his firm’s latest channel survey “suggest the spending environment is getting incrementally weaker.” He notes that the latest survey suggests the decline is accelerating. He notes that the firm’s most recent survey found next-12 months growth expectation d

• Autoliv AB (ALV)
• Check Point Software Technologies Ltd. (CHKP)
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• Keystone Consolidated Industries Inc. (KYCN)
• MEMC Electronic Materials Inc. (WFR)
• Polaris Industries Inc. (PII)
• Schuff International Inc. (SHFK)
• iBasis Inc. (IBAS)

Check Point Software (CHKP) this morning posted Q2 revenue of $199.6 million, ahead of the Street consensus of $195.1 million, and up 13% year over year. Non-GAAP EPS of 43 cents a share was in line with the Street.

In a post-earnings conference call, according to Reuters, the company projected Q3 revenue of $194 million to $204 million, with profits of 41-45 cents a share. The Street has been expecting $199 million and 44 cents.

For the full year, Check Point now sees revenue of $805 million to $825 million, up from previous guidance of $780 million to $820 million. The Street has been looki