Check Point Software Technologies .-This Artificial Intelligence (AI) Stock Is Up 15% in 2025 Already. It Is Still a Solid Buy?

Core Viewpoint - Check Point Software Technologies has shown a strong performance with a 15% gain in 2025 and is well-positioned for future growth due to the increasing adoption of AI tools in the cybersecurity sector [1][2]. Financial Performance - Check Point ended 2024 with total revenue of $2.66 billion, reflecting a 6% year-over-year increase, while non-GAAP earnings rose by 9% to$ 9.16 per share [3]. - The company expects fiscal 2025 revenue growth in the range of 4% to 8%, with earnings growth projected between 5% to 11%, potentially reaching $9.90 per share [8]. Growth Indicators - The remaining performance obligations (RPO) increased by 12% year-over-year in Q4 2024, indicating a robust revenue pipeline as it represents the total value of contracted products and services yet to be recognized as revenue [4]. - Demand for Check Point's AI-powered firewall product, Quantum Force, has been rising, contributing to an 8% year-over-year increase in product and license sales in the previous quarter [6]. Market Position and Valuation - Check Point is trading at 22 times forward earnings, which is lower than the Nasdaq-100 index's forward earnings multiple of 28, suggesting an attractive valuation [10]. - If Check Point achieves$ 12 per share in earnings by 2027 and trades in line with the Nasdaq-100's forward earnings multiple, its stock price could potentially reach $342, representing a 59% increase from current levels [11].