Meet the Cybersecurity Stock Every Wall Street Analyst Sees Going Higher in 2026 - The Motley Fool

By Adam Levy – Feb 3, 2026 at 4:26AM EST KEY POINTS Many enterprises are looking to consolidate their cybersecurity providers, leading to a handful of big winners in the fast-growing industry. This company has been able to maintain industry-high operating margins with more conservative growth efforts. The stock valuation sits well below its peers, making it an attractive buy right now. Wall Street analysts are generally a bullish bunch, but it's still quite uncommon for them to all agree that a stock is headed higher. But one cybersecurity stock fits the bill, making it worth a closer look. The lowest price target on Wall Street for Check Point Software ( CHKP 2.79% ) sits at $195, about 8.6% above its market price as of this writing. Interestingly, more analysts say the stock is a Hold instead of a Buy. That may be because it's not growing as quickly as some of its competitors in cybersecurity. But the slower, steadier growth of Check Point could mean a bigger payday for patient, long-term investors. Image source: Getty Images. A value in cybersecurity Cybersecurity is a growing industry as more companies shift operations from on-premise equipment to the cloud. That's accelerated in recent years as more companies support remote work, requiring more software-based security protocols to prevent unauthorized access to proprietary data and systems. That's also pushed enterprises to consolidate their security systems with a single provider, making it easier to manage. That's led many cybersecurity companies to spend aggressively to acquire technology and market their services. Check Point has historically been much more conservative in its strategy, keeping operating expenses and capital investments low. As a result, its adjusted operating margin of 42% last quarter is one of the best in the industry. Expand NASDAQ: CHKP Check Point Software Technologies Today's Change (-2.79%) $-3.98 Current Price $138.84 KEY DATA POINTS Market Cap $15B Day's Range $135.82 - $143.70 52wk Range $135.82 - $233.78 Volume 1.1M Avg Vol 1.3M Gross Margin 85.42% But the company is starting to ramp up spending. It recently acquired Lakera, a security platform specializing in AI agents. Additionally, it's increasing spending on R&D and sales and marketing, focused on building out its software-based solutions for endpoint security (for remote workers) and security operations (to identify and mitigate attacks across devices). Both have much higher margins than its legacy firewall hardware business. That said, the hardware business remains a key source of strength for Check Point. Its Infinity platform brings together all of its products, enabling enterprises to consolidate their cybersecurity needs with Check Point, a major focus for many customers. With its leading position in hardware, it's well positioned to grow its software business while spending more on marketing and R&D. As a result, the company is poised for strong earnings growth, even if it's still not growing its top line as quickly as more aggressive competitors. Indeed, analysts see Check Point growing revenue at a steady mid-single-digit growth rate over the next couple of years. Earnings might not grow as quickly as management spends to stave off competition and grow its software business, but operating margin should remain relatively stable near its industry high. With the stock trading at a forward P/E of just 16.7, it's no wonder analysts think it's undervalued. While it doesn't offer nearly as much upside as other cybersecurity stocks, it doesn't carry nearly as much downside either. Read Next Feb 27, 2026 By Will Healy Sphera Dumps 15,000 Check Point Software Shares Worth $3.1 Million Mar 28, 2026 By Adria Cimino This AI Giant Aims to Reach $9 Trillion in Market Cap. Is the Stock a Buy? Mar 28, 2026 By Keithen Drury 10 AI Stocks I'm Buying Right Now Mar 28, 2026 By Adria Cimino Nvidia May be Back in Business in China. Here's What That Means for Revenue. Mar 28, 2026 By Anthony Di Pizio Here's Why The Vanguard S&P 500 Growth ETF Could Be Your Ticket to Beating the Market Over the Long Term Mar 28, 2026 By Keith Speights Is Now the Time to Buy Salesforce? Here's What the Numbers Reveal ABOUT THE AUTHOR Adam Levy is a contributing Motley Fool stock market analyst covering technology, consumer, and financial stocks and how policy, economic, and consumer trends shape personal finance, Social Security and retirement savings. Before The Motley Fool, Adam was a financial advisor at Edward Jones. He studied finance and electrical engineering at Carnegie Mellon University. TMFnCaffeine @admlvy STOCKS MENTIONED Check Point Software Technologies NASDAQ: CHKP $138.84 (-2.79%) -$3.98 *Average returns of all recommendations since inception. Cost basis and return based on previous market day close.