Palo Alto Networks, Inc. (PANW) , a leading name in cybersecurity, has experienced a significant drop of more than 10% in its stock price over the past month, a decline that far exceeds the 6.5% drop of the S&P 500.The primary driver behind this decline is the broader market sell-off, fueled by macroeconomic concerns. Investors are jittery due to uncertainty around the Federal Reserve's interest rate policies and fears of a potential U.S. recession. The recent disappointing job report from the U.S. Departme ...

Financial Results Announcement - Palo Alto Networks will release its financial results for the fiscal fourth quarter and fiscal year 2024 on August 19, 2024, after U.S. markets close [1] - A video webcast will be held on the same day at 1:30 p.m. Pacific time to discuss the results [1] - A financial results press release will be available on the company's website prior to the webcast [1] Company Overview - Palo Alto Networks is recognized as the global leader in cybersecurity, providing next-gen cybersecurity solutions to thousands of customers across various sectors [2] - The company focuses on innovation to combat cyber threats, enabling organizations to adopt technology confidently [2] - Palo Alto Networks emphasizes its commitment to enhancing security outcomes through a robust partner ecosystem and advanced automation [2] Workplace Recognition - The company has been recognized as a top workplace, appearing on Newsweek's Most Loved Workplaces list from 2021 to 2024 [3] - It achieved a score of 100 on the Disability Equality Index for the years 2022 to 2024 [3] - Palo Alto Networks was also recognized as one of the Best Places for LGBTQ Equality by HRC in 2022 [3]

Investment Rating - Initiate coverage with a BUY rating and a target price of US$391.7 per share, representing a 19.9% upside from the current price of US$326.81 [3][2]. Core Insights - Palo Alto Networks (PANW) is positioned to benefit from the increasing demand for cybersecurity solutions, with a projected revenue CAGR of 16% from FY23 to FY26 and a non-GAAP net profit CAGR of 23% during the same period [2][10]. - The total addressable market (TAM) for PANW's key sectors—network security, cloud security, and Security Operation Center (SOC)—has grown from US$38 billion in 2018 to US$104 billion in 2023, with expectations to reach US$210 billion by 2028, driven by the adoption of Secure Access Service Edge (SASE) and cloud security [2][10][27]. - PANW's strong financial profile adheres to the "Rule of 50," indicating a balanced growth in revenue and profitability, which supports its valuation [2][14]. Cybersecurity Market Overview - The cybersecurity market is experiencing significant growth, with the TAM for PANW's sectors expected to expand at a CAGR of 15% from 2023 to 2028 [2][10]. - The demand for cybersecurity solutions is driven by an increasingly complex threat landscape, with cybercrimes costing the global economy US$8 trillion annually [28][27]. Company Positioning - PANW has been recognized as a leader in 23 product categories across network security, cloud security, and SOC, which enhances its competitive edge and market share [11][2]. - As of 2QFY24, 79% of Global 2000 customers have engaged with PANW on at least two platforms, indicating strong customer loyalty and product integration [11][2]. Platformization Strategy - The acceleration of PANW's Platformization strategy is expected to enhance market share gains, despite potential short-term impacts on billings and revenue growth [12][2]. - The strategy aims to improve customer total cost of ownership (TCO) and return on investment (ROI) by consolidating multiple cybersecurity solutions into a unified platform [27][12]. Growth Opportunities - PANW is poised to capitalize on the growing opportunities related to Generative AI, which could increase demand for its products and services while also allowing for potential price increases due to improved user experience and operational efficiency [13][2]. - The company is also focusing on international expansion and the adoption of next-generation security products to drive future revenue growth [12][2]. Financial Performance - PANW's revenue is projected to grow from US$6.9 billion in FY23 to US$10.8 billion by FY26, with a consistent year-over-year growth rate [7][2]. - The company has a strong financial profile, with a non-GAAP adjusted net profit expected to increase from US$1.4 billion in FY23 to US$2.7 billion by FY26 [7][2].

Sundry Photography Investment Thesis CrowdStrike's (CRWD) uneventful outage last week led to nightmarish digital lockdowns last week, which have distorted the constantly evolving, compelling outlook for the cybersecurity industry, where leading players such as Zscaler (ZS), Cloudflare (NET), and Palo Alto Networks (NASDAQ:PANW) operate at different intersections of the cybersecurity market. Earlier this year, Palo Alto Networks advised investors that it would be anticipating a slowdown in its billings guida ...

Palo Alto Networks (PANW) closed at $333.16 in the latest trading session, marking a +0.69% move from the prior day. The stock's change was less than the S&P 500's daily gain of 1.08%. Elsewhere, the Dow saw an upswing of 0.32%, while the tech-heavy Nasdaq appreciated by 1.58%.Shares of the security software maker witnessed a gain of 3.3% over the previous month, beating the performance of the Computer and Technology sector with its loss of 4.77% and the S&P 500's gain of 0.43%.Analysts and investors alike ...

Palo Alto Networks (NASDAQ:PANW) stock is on the rise Friday as an outage caused by CrowdStrike (NASDAQ:CRWD) boosts its rivals’ shares higher this morning.It looks like an update from Crowstrike to devices running Microsoft’s (NASDAQ:MSFT) Windows is causing outages around the world. CrowdStrike is one of the major players in the cybersecurity game so this is a major blow to its shares as they fall 12.6% today.However, that loss for CRWD stock is good news for its competitors. That includes Palo Alto Netwo ...

Core Viewpoint - Palo Alto Networks (PANW) is experiencing positive stock performance, with a recent closing price of $340.91, reflecting a 1.31% increase from the previous trading session, outperforming the S&P 500's gain of 0.28% [1] Company Performance - The stock has increased by 6.05% over the past month, surpassing the Computer and Technology sector's gain of 4.22% and the S&P 500's gain of 3.78% [1] - The upcoming earnings report is anticipated to show an EPS of $1.41, a decrease of 2.08% year-over-year, while revenue is expected to reach $2.16 billion, marking a 10.64% increase compared to the same quarter last year [1] Earnings Estimates - Full-year Zacks Consensus Estimates project earnings of $5.57 per share and revenue of $8 billion, indicating year-over-year increases of 25.45% and 16.05%, respectively [2] - Recent changes in analyst estimates suggest a positive outlook for the company's business operations and profit generation capabilities [2] Stock Valuation - Palo Alto Networks holds a Zacks Rank of 2 (Buy), with a Forward P/E ratio of 60.43, which is significantly higher than the industry's average Forward P/E of 29.77 [3] - The company has a PEG ratio of 2.72, compared to the Internet - Software industry's average PEG ratio of 1.74 [3] Industry Context - The Internet - Software industry is part of the Computer and Technology sector and currently holds a Zacks Industry Rank of 89, placing it in the top 36% of over 250 industries [4] - The Zacks Industry Rank indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [4]

The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price. Do they really matter, though?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) .Palo Alto currently has an average bro ...

The S&P 500 index is at a record high, but it isn't too late for long-term investors to buy into the stock market.If you knew there was a once-in-a-century pandemic on the horizon, you would probably expect the benchmark S&P 500 to suffer a sustained decline. But in the face of COVID-19, it actually gained 18.4% in 2020 followed by another 28.7% in 2021. Of course, U.S. government stimulus and record-low interest rates played a role.The S&P 500 then plunged 18.1% in 2022 on the back of soaring inflation and ...

The latest trading session saw Palo Alto Networks (PANW) ending at $337.64, denoting a -1.3% adjustment from its last day's close. The stock trailed the S&P 500, which registered a daily gain of 0.1%. Elsewhere, the Dow lost 0.08%, while the tech-heavy Nasdaq added 0.28%.Heading into today, shares of the security software maker had gained 13.31% over the past month, outpacing the Computer and Technology sector's gain of 8.41% and the S&P 500's gain of 4.08% in that time.Investors will be eagerly watching fo ...