We got to do final trades. I turn to Brian Bellski. >> Scott, we're going >> humble humilous.>> Yes. >> Capital management. >> Thank you. Thank you.We're going with Raymond James Financial. One of the last standalone brokerage firms. It's a wonderful shop with both a broker dealer and an asset management business.>> I'm going Zcaler. It's been falling this week, but earnings are in a couple of weeks. I expect them to be strong.Link sir. >> Paloalto. ...

Group 1 - The discussion highlights the final trades being made by analysts, indicating a focus on timely investment decisions [1] - Raymond James Financial is noted as a prominent standalone brokerage firm with both broker-dealer and asset management services, suggesting its strong market position [1] - Zscaler is mentioned as a company experiencing a decline in stock price, but analysts anticipate strong earnings in the upcoming report [1] - Palo Alto Networks is also referenced, indicating interest in its performance within the cybersecurity sector [1]

Core Viewpoint - The article discusses a bearish options strategy involving Palo Alto Networks (PANW) stock, suggesting that the stock is unlikely to rise above $225 in the near term, making a bear call spread a potentially profitable trade [1][2]. Summary by Sections Bear Call Spread Strategy - A bear call spread is proposed for Palo Alto Networks, assuming the stock will not exceed $225 in the coming week, with a 52-week high of $223.61 [2]. - The strategy involves selling an out-of-the-money call and buying a further out-of-the-money call, allowing for profit if the stock trades lower, sideways, or slightly higher, as long as it remains below the short call at expiration [2]. Financial Details of the Trade - The bear call spread with a November 21 expiration uses strike prices of $225 to $230, sold for approximately $0.50 per share, yielding a maximum gain of $50 on a 100-share contract, with a maximum loss of $450 [3][4]. - The maximum profit occurs if PANW closes below $225 on November 21, allowing the trader to keep the $50 option premium [4]. Risk Management - This bear call spread is defined as a risk-defined trade, with known worst-case scenarios. A stop loss can be set if PANW trades above $217 or if the spread value increases from $0.50 to $1 [5]. - The trade is seen as a way to generate income while the stock remains in a downtrend [5]. Company Overview - Palo Alto Networks is a global leader in cybersecurity, providing advanced firewall, cloud security, and AI-driven threat detection solutions to over 70,000 organizations worldwide [7]. - The company serves various industries, including finance, healthcare, energy, and government, and supports digital transformation through platforms like Prisma Cloud and Cortex XDR [7]. Ratings and Earnings - Investor's Business Daily rates Palo Alto Networks with a Composite Rating of 96 out of 99, an Earnings Per Share Rating of 98, and a Relative Strength Rating of 72, ranking 47th in its group [6]. - The company is scheduled to report earnings on November 19, which introduces earnings risk if the options trade is held until expiration [6].

Core Insights - Analysts project Palo Alto Networks (PANW) will report quarterly earnings of $0.89 per share, reflecting a 14.1% year-over-year increase, with revenues expected to reach $2.46 billion, a 15.1% increase from the same quarter last year [1] Earnings Projections - The consensus EPS estimate for the quarter has remained unchanged over the past 30 days, indicating a reassessment of initial projections by covering analysts [1][2] - Changes in earnings projections are crucial for predicting investor reactions to the stock, with empirical studies showing a strong correlation between earnings estimate trends and short-term stock price movements [2] Revenue Estimates - Analysts estimate 'Revenue- Product' will reach $423.19 million, a 19.6% increase year-over-year [4] - 'Revenue- Subscription and support' is projected at $2.04 billion, indicating a 14.2% year-over-year increase [4] - 'Revenue- Subscription and support- Support' is expected to be $651.71 million, reflecting a 9.9% increase from the previous year [4] - 'Revenue- Subscription and support- Subscription' is estimated at $1.39 billion, a 16.6% year-over-year increase [5] Profit Estimates - 'RPO (Remaining Performance Obligation)' is projected at $15.47 billion, up from $12.60 billion year-over-year [5] - 'Product gross profit Non-GAAP' is expected to be $333.92 million, compared to $282.00 million in the same quarter last year [5] - 'Subscription and support gross profit Non-GAAP' is anticipated to reach $1.56 billion, up from $1.37 billion year-over-year [6] - 'Subscription and support gross profit GAAP' is projected at $1.51 billion, compared to $1.31 billion last year [6] - 'Product gross profit GAAP' is estimated at $333.26 million, compared to $278.80 million in the previous year [7] Stock Performance - Palo Alto shares have experienced a -0.4% change over the past month, contrasting with the Zacks S&P 500 composite's +1.4% movement [7] - The company holds a Zacks Rank 3 (Hold), suggesting it is expected to closely follow overall market performance in the near term [7]

Core Insights - The emergence of AI-driven cyber attacks poses significant challenges for cybersecurity companies, as they now face threats from AI systems that operate continuously and autonomously [1][2][3] Cybersecurity Industry Impact - Companies like CrowdStrike and Palo Alto Networks experienced declines in stock prices following the disclosure of an AI orchestrated cyber attack by Anthropic [1] - The attack involved a Chinese state-backed group that utilized Anthropic's Claude model to automate a global espionage campaign, marking a shift from traditional human-directed hacking to AI-led operations [2] AI's Role in Cyber Attacks - The AI was able to identify vulnerabilities, breach systems, and steal sensitive information with minimal human intervention, indicating a significant evolution in the nature of cyber threats [2][3] - Anthropic warns that this represents a turning point in cybersecurity, emphasizing the need for defenders to adopt similar AI technologies to keep pace with evolving threats [3] Cyber Insurance Market Response - In contrast to the declines in cybersecurity stocks, companies in the cyber insurance sector, such as AIG, Chubb, and Travelers, saw their stock prices rise following the report of the AI-driven attack [3]

Core Insights - Palo Alto Networks, Inc. is set to report its first-quarter fiscal 2026 results on November 19, projecting revenues between $2.45 billion and $2.47 billion, indicating a year-over-year increase of 14.5% to 15.5% [1] - The Zacks Consensus Estimate for fiscal first-quarter non-GAAP earnings remains at 89 cents per share, reflecting a 14.1% increase from the previous year [2] Revenue and Earnings Projections - Expected revenues for Q1 fiscal 2026 are between $2.45 billion and $2.47 billion, which translates to approximately 15% year-over-year growth [9] - The consensus for non-GAAP earnings per share is 89 cents, unchanged over the past 60 days, with an anticipated increase of 14.1% from the prior year [2][3] Performance Indicators - Palo Alto Networks has consistently beaten the Zacks Consensus Estimate in the last four quarters, with an average surprise of 5.3% [3] - The company currently holds an Earnings ESP of 0.00% and a Zacks Rank of 3 (Hold), indicating uncertainty regarding an earnings beat this time [4][5] Growth Drivers - The company's performance is likely bolstered by strong deal wins and progress in its platformization strategy, particularly in AI-powered offerings [6] - Significant growth in Next-Generation Security (NGS) Annual Recurring Revenues (ARR) is noted, with large customers showing nearly 80% year-over-year growth in NGS ARR [7] - The shift to cloud platforms and increased demand for cybersecurity solutions due to rising cyberattacks in a hybrid work environment are expected to positively impact performance [8] Market Position and Valuation - Year-to-date, Palo Alto Networks shares have increased by 15.7%, underperforming the Zacks Security industry's growth of 27.4% [11] - The company trades at a lower price-to-sales (P/S) ratio of 12.99X compared to the industry average of 13.74X, suggesting reasonable value amidst solid long-term prospects [14][18] Strategic Considerations - The pending acquisition of CyberArk is anticipated to enhance Palo Alto Networks' capabilities in identity-driven threat protection, complementing its existing security offerings [20] - Despite macroeconomic challenges and potential softening in IT spending, the company's innovative strategies and market execution are expected to drive long-term growth [22]

Group 1 - Proactive provides fast, accessible, informative, and actionable business and finance news content to a global investment audience [2][3] - The news team covers key finance and investing hubs, including London, New York, Toronto, Vancouver, Sydney, and Perth [2] - Proactive specializes in medium and small-cap markets while also keeping the community updated on blue-chip companies, commodities, and broader investment stories [2][3] Group 2 - The team delivers news and insights across various sectors, including biotech and pharma, mining and natural resources, battery metals, oil and gas, crypto, and emerging digital and EV technologies [3] - Proactive adopts technology to enhance workflows and improve content production [4][5] - All content published by Proactive is edited and authored by humans, ensuring adherence to best practices in content production and search engine optimization [5]

Core Insights - Palo Alto Networks, Inc. (PANW) shares have increased by 23.4% over the past three months, outperforming the Zacks Security industry's growth of 15.8% [1][9] - The company is well-positioned to benefit from the expanding global cybersecurity market, projected to grow from $193.73 billion in 2024 to $562.77 billion by 2032 [5] - The company's innovation in AI, automation, and cloud security is enhancing its competitive edge [6] Company Performance - Palo Alto Networks has seen strong adoption of its AI-powered platforms, such as Cortex XSIAM and Prisma AIRS, which are driving multi-product deal growth [9] - The company reported that Cortex XSIAM is its fastest-growing product, with around 400 customers and an average annual recurring revenue (ARR) per customer exceeding $1 million [8] - A significant deal was closed with a leading European bank for over $60 million, which included the adoption of XSIAM [10] Market Trends - The demand for advanced cybersecurity solutions is increasing as enterprises prioritize multi-layered security platforms [5] - The company's Prisma Access Browser is contributing to strong growth in its Secure Access Service Edge (SASE) business, with SASE ARR rising 35% year over year [12] - The Prisma Access Browser is expected to become a key security layer as more work transitions to the cloud and AI tools are integrated into workplaces [13] Financial Outlook - The Zacks Consensus Estimate for Palo Alto Networks' fiscal 2026 total revenues is $10.42 billion, indicating a year-over-year increase of 17.5% [15] - The company is trading at a lower price-to-sales (P/S) multiple of 13.14X compared to the industry average of 13.45X, making it an attractive investment opportunity [19][22] Conclusion - The company is recommended as a buy due to its leadership in AI-driven cybersecurity solutions and reasonable valuation, which offers downside protection [23]

Core Viewpoint - Barclays has raised the target price for Palo Alto Networks from $215 to $230 while maintaining an "Overweight" rating [1] Summary by Category - **Target Price Adjustment** - The target price for Palo Alto Networks has been increased from $215 to $230 [1] - **Rating Maintenance** - Barclays continues to hold an "Overweight" rating for Palo Alto Networks [1]

At Cash Flow Club , we focus on businesses with strong cash generation, ideally with a wide moat and significant durability. When these companies are bought at the right time, that can be highly rewarding for us. If you are interested in joining our community, start right here !Palo Alto Networks, Inc. ( PANW ) will report its fiscal first quarter earnings results on next week's Wednesday (November 19). In this article, I will take a look at what investors can expect fromJonathan Weber holds an engineering ...