12 Best Edge Computing Stocks to Invest in According to Analysts

9. Check Point Software Technologies Ltd. (NASDAQ:CHKP)

Average Analyst Upside: 10.83%

Number of Hedge Fund Holders: 32

Check Point Software Technologies Ltd. (NASDAQ:CHKP) specializes in developing, designing, and marketing enterprise software, offering services such as threat prevention, web security, security management, and software-defined protection. The company has also enhanced its Harmony SASE offering by integrating its proprietary SD-WAN and IoT security capabilities, streamlining the management of secure access service edge solutions.

In Q3 2024, Check Point Software Technologies Ltd. (NASDAQ:CHKP) introduced its AI-powered Quantum Firewall R82 and reported a 7% year-over-year increase in revenue, reaching $635 million. Non-GAAP earnings per share rose 9% to $2.25, while subscription revenue grew by 12%. Additionally, the company’s $186 million acquisition of Cyberint is expected to bolster its security operations capabilities.

Following these results, Barclays revised its outlook on Check Point Software Technologies Ltd. (NASDAQ:CHKP), lowering its price target from $210 to $200 but maintaining an Overweight rating on the stock. Barclays predicts high single-digit growth for Q4 2024, reflecting the inclusion of delayed deals, while setting expectations for approximately 5% growth in FY 2025, noting tougher year-over-year comparisons for Check Point Software Technologies Ltd. (NASDAQ:CHKP).

Ariel Global Fund stated the following regarding Check Point Software Technologies Ltd. (NASDAQ:CHKP) in its Q3 2024 investor letter:

“Israeli based provider of products for information technology security, Check Point Software Technologies Ltd. (NASDAQ:CHKP) also advanced following solid quarterly earnings results. Double-digit billings growth was particularly strong across geographies. Consumers appear to be adopting more pillars of Check Point’s platform and engaging in larger strategic commitments with Infinity and Quantum Force. The company also announced the appointment of new CEO Nadav Zafrir, whose reputation is well established in the cyber community. Meanwhile, Check Point continues to be an astute steward of capital, pursuing organic growth and utilizing surplus cash to return capital to shareholders. We continue to favor the company’s exposure to the fast-growing cloud security market and its industry leading profitability.”