This platform allows businesses to detect and respond to cyber threats stopping a hacker before they reach critical infrastructure. The company’s mission is to protect its customers from cyber threats by providing innovative security solutions that are easy to use and deploy. Palo Alto Networks offers various products and services to protect networks, endpoints and cloud-based applications from advanced cyber attacks. Palo Alto Networks Inc is a leading cybersecurity company that provides advanced security solutions to businesses, governments and organizations worldwide.
Of the 36 recommendations that derive the current ABR, 31 are Strong Buy and two are Buy. Strong Buy and Buy respectively account for 86.1% and 5.6% of all recommendations. Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let’s see what these Wall Street heavyweights think about Palo Alto Networks (PANW). Independent Solutions Wealth Management Portfolio Manager Paul Meeks joins Yahoo Finance anchor Julie Hyman to discuss Palo Alto Networks’ earnings results, which he calls « the one » long-term cybersec… Palo Alto Networks delivered strong quarterly profits to end its fiscal year. The industry with the best average Zacks Rank would be considered the top industry (1 out of 265), which would place it in the top 1% of Zacks Ranked Industries.
However, this is lower than many other popular AI-powered SaaS companies, as shown below. The number of deals that call for more than $20 million in annual revenue grew by 43% year over year last quarter. Palo Alto Networks also sees its total addressable market doubling over the next five years from $100 billion to well over $200 billion. This means that sales can double by maintaining its current market share. Its remaining performance obligation (RPO) ballooned to $10.6 billion last quarter from $8.2 billion a year ago. This means the company has 1.5 times last year’s revenue already under contract for future periods.
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According to 38 analysts, the average rating for PANW stock is « Strong Buy. » The 12-month stock price forecast is $263.62, which is an increase of 6.80% from the latest price. Palo Alto Networks’ financial profile offers consistent revenue growth and difference between nostro and vostro account profitability. This is coupled with ample cash and cash equivalents available for use. Palo Alto Networks has consistently generated positive cash flow from operations and has no long-term debt, providing a financial foundation for future growth.
If the personal savings rate were to return to pre-pandemic levels there would be a significant drop in demand which would likely be enough to tip the US economy into a slowdown. Shares of Palo Alto Networks split before market open on Wednesday, September 14th 2022. The newly created shares were distributed to shareholders after the market closes on Tuesday, September 13th 2022. An investor that had 100 shares of stock prior to the split would have 300 shares after the split. Investors who believe in market efficiency should consider market cap indexes, as they replicate market returns in a low-cost, convenient, and transparent way.
‘Mad Money’ host Jim Cramer talk the day’s market action, how to play the current market and more. Palo Alto Networks Chairman and CEO Nikesh Arora goes one-on-one with ‘Mad Money’ host Jim Cramer to talk quarterly results, cybersecurity, competition in the space and more. The problem was valuation, fears of slowing growth and threats of a looming recession. According to the Q2 reporting season, growth is slowing but still robust and above consensus. Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. The Style Scores are a complementary set of indicators to use alongside the Zacks Rank.
Palo Alto Networks Inc
The company provided EPS guidance of $5.27-$5.40 for the period, compared to the consensus EPS estimate of $4.98. The company issued revenue guidance of $8.15 billion-$8.20 billion, compared to the consensus revenue estimate of $8.38 billion. Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Technology ETFs. Products that are based on market cap weighted indexes, which are strategies designed to reflect a specific market segment or the market as a whole, have traditionally dominated the ETF industry. Palo Alto Networks has a lot of competition, including Microsoft and CrowdStrike. The valuation could also turn investors off as Palo Alto Networks trades at 12 times sales.
As an investor, you want to buy stocks with the highest probability of success. That means you want to buy stocks with a Zacks Rank #1 or #2, Strong Buy or Buy, which also has a Score of an A or a B in your personal trading style. The scores are based on the trading styles of Value, Growth, and Momentum. There’s also a VGM Score (‘V’ for Value, ‘G’ for Growth and ‘M’ for Momentum), which combines the weighted average of the individual style scores into one score. © 2023 Market data provided is at least 10-minutes delayed and hosted by Barchart Solutions. Information is provided ‘as-is’ and solely for informational purposes, not for trading purposes or advice, and is delayed.
PANW Palo Alto Networks Inc
According to TipRanks, Eyal is a top 25 analyst with an average return of 25.8% and a 69.96% success rate. Eyal covers the Technology sector, focusing on stocks such as Palo Alto Networks, Check Point, and Verint Systems. Zscaler reports a strong quarter, but Palo Alto Networks is still the top cybersecurity pick for CNBC’s Jim Cramer. Palo Alto Networks is heavily focusing on AI to power its cybersecurity software products. Palo Alto Networks provides network security to businesses and government entities, safely enabling the applications running on their networks. The technique has proven to be very useful for finding positive surprises.
• Comprehensive product lineup across networking and security domains. One share of PANW stock can currently be purchased for approximately $246.29. MarketRank is calculated as an average of available category scores, with extra weight given to analysis and valuation.
More value-oriented stocks tend to represent financial services, utilities, and energy stocks. In conclusion, PANW is an industry-leading cybersecurity business with a comprehensive end-to-end product offering and complementary product lineup creating a durable platform with high profitability and recurring revenue base. The market has yet to get the Company full credit for its shift away from the traditional hardware business and overtime I believe the stock will trade in line with blue-chip large-cap tech stocks. 42 Wall Street research analysts have issued « buy, » « hold, » and « sell » ratings for Palo Alto Networks in the last twelve months. There are currently 3 hold ratings and 39 buy ratings for the stock. The consensus among Wall Street research analysts is that investors should « moderate buy » PANW shares.
Data are provided ‘as is’ for informational purposes only and are not intended for trading purposes. Data may be intentionally delayed pursuant to supplier requirements. But one industry that doesn’t need to fake its connection to AI is cybersecurity.
Palo Alto Networks Is A Blue-Chip Stock
There is also a key difference between the ABR and Zacks Rank when it comes to freshness. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices. Looking at the research model, analysts are roughly in-line with management’s guidance for FY24 with operating margins ~25% and revenue growth of ~18%. Margins are expected to improve substantially over historical levels as the company’s focus on NGS revenues leads to higher product margins and improved profitability.
First Trust NASDAQ-100-Technology Sector ETF is an excellent option for investors seeking to outperform the Technology ETFs segment of the market. There are other ETFs in the space which investors could consider as well. The ETF has a beta of 1.17 and standard deviation of 31.08% for the trailing three-year period, making it a high risk choice in the space. With about 39 holdings, it has more concentrated exposure than peers. Annual operating expenses for this ETF are 0.57%, making it on par with most peer products in the space. The NASDAQ-100 Technology Sector Index is an equal-weighted index based on the securities of the NASDAQ-100 Index that are classified as technology.
Palo Alto Posts Impressive Results and Remains Confident in Underlying Demand
The company has offices and infrastructure in more than 150 countries and has offices and operations in key markets worldwide. Palo Alto Networks’ global presence allows it to serve diverse customers and tap into new markets for growth. Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data. Compare
PANW’s historical performance
against its industry peers and the overall market.
- Dividend yield allows investors, particularly those interested in dividend-paying stocks,
to compare the relationship between a stock’s price and how it rewards stockholders through dividends.
- Palo Alto Networks, Inc. was incorporated in 2005 and is headquartered in Santa Clara, California.
- This platform allows businesses to detect and respond to cyber threats stopping a hacker before they reach critical infrastructure.
- This means that over the past quarter there has been an increase of insiders selling their shares of PANW in relation to earlier this year.
- According to the Q2 reporting season, growth is slowing but still robust and above consensus.
Palo Alto Networks, Inc. provides cybersecurity solutions worldwide. The company offers firewall appliances and software; and Panorama, a security management solution for the global control of network security platform as a virtual or a physical appliance. Palo Alto Networks, Inc. was incorporated in 2005 and is headquartered in Santa Clara, California.
Recurring revenue models are vastly superior and provide consistent yearly sales rather than one-off hardware or licensing sales that can be lumpy. Microsoft pioneered this model when it moved from licensing software like Microsoft Word to selling it as an annual subscription — resulting in tremendous success. CrowdStrike is a terrific company (one of my favorites), and I have written about it recently. But despite having https://1investing.in/ 2.5 times more revenue over the trailing 12 months than CrowdStrike, Palo Alto Networks doesn’t get the same love. In terms of earnings estimate revisions for Palo Alto, the Zacks Consensus Estimate for the current year has increased 35.7% over the past month to $5.34. The odd saga about why a company would report earnings on a Friday evening in August concluded Monday with a recovery of most related market losses.
The company has developed a reputation for delivering innovative and effective security solutions and it has been recognized by industry analysts for its leadership in the cybersecurity market. The company now offers a suite of comprehensive cloud-based solutions. For example, its latest product, Cortex XSIAM, uses AI to improve security operations, detect and manage threats, and automate many processes.
PANW shares fell on Tuesday in sympathy with Oracle ORCL, which dropped after issuing soft guidance. Palo Alto Networks’ innovation has driven revenue growth from $3.4 billion in fiscal 2020 to $6.9 billion in fiscal 2023. The best part is that the vast majority of this revenue is now recurring, as shown below.
The cybersecurity pure-play leader reported results on a Friday, and its shares were booming again by Monday. Recent stocks from this report have soared up to +178.7% in 3 months – this month’s picks could be even better. Most ETFs are very transparent products, and disclose their holdings on a daily basis. ETFs also offer diversified exposure, which minimizes single stock risk, though it’s still important for investors to research a fund’s holdings. These indexes attempt to select stocks that have better chances of risk-return performance, based on certain fundamental characteristics or a combination of such characteristics.
It allows the user to better focus on the stocks that are the best fit for his or her personal trading style. PANW’s beta can be found in Trading Information at the top of this page. A stock’s beta measures how closely tied its price movements have been to the performance of the overall market. Morningstar analysts hand-select direct competitors or comparable companies to
provide context on the strength and durability of PANW’s
competitive advantage. Our experts picked 7 Zacks Rank #1 Strong Buy stocks with the best chance to skyrocket within the next days. To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.