Data-security specialist Check Point Software Technologies
Earnings of $0.68 per share on $301 million in revenue beat analyst expectations on both counts, albeit by small margins. Management credits the outperformance to strong sales of software-based security and system-control plugins for its line of hardware appliances.
Check Point's management doesn't like to claim wins over a struggling Cisco, because the networking giant's security sales tend to go straight into existing Cisco-based networks. There's not much overlap there. So pinning this strong quarter on Cisco's troubles would be a mistake.
No, Check Point is sniffing at 10-year highs because it makes best-of-breed security products and outsells the competition based on quality. This stock has rewarded Rule Breakers subscribers with a market-crushing 140% return in just over two years and looks likely to continue its 10-quarter streak of strong reports -- unless a larger competitor decides to buy it out first. Either way, shareholders win. You'd be wise to keep a close eye on this company, and we have just the tool to help you do it -- add Check Point to your Foolish watchlist.