PANW Stock Trades at a Discount: Should You Buy, Hold or Sell?

Core Viewpoint - Palo Alto Networks, Inc. (PANW) is currently trading at a discounted valuation, making it an attractive stock for investors considering buy, hold, or sell decisions [1] Valuation Comparison - PANW has a forward 12-month price-to-earnings (P/E) ratio of 53.71, significantly lower than the Zacks Security industry average of 99.59 [1] - Compared to competitors like CrowdStrike (CRWD), CyberArk (CYBR), and Zscaler (ZS), which have P/E multiples of 103.58, 89.93, and 60.95 respectively, PANW's valuation remains favorable [2] - The forward 12-month price-to-sales (P/S) ratio for PANW is 12.4, below the industry average of 13.12, indicating a reasonable valuation [2] Long-Term Growth Drivers - The global cybersecurity market is projected to grow from $193.73 billion in 2024 to$562.72 billion by 2032, presenting a significant opportunity for PANW [5] - PANW's innovation in AI, automation, and cloud security positions it favorably against competitors, with a strategic partnership with NVIDIA to develop AI-powered private 5G security solutions [6] - The transition to a platform-based business model allows PANW to bundle multiple security products, generating recurring revenue streams and enhancing customer loyalty [7] Technical Indicators - PANW crossed above its 50-day moving average on March 19, indicating renewed bullish momentum and improving investor sentiment [8] Sales Growth and Projections - In fiscal 2024, PANW reported a 16% year-over-year revenue growth, down from 25% in fiscal 2023, with projections for fiscal 2025 indicating a further slowdown to 14% growth [10][11] - The Next-Generation Security (NGS) annual recurring revenue (ARR) growth has also shown a decline, with projections for fiscal 2025 indicating a slowdown to 31-32% compared to previous years' growth of over 45% [12] Investment Recommendation - Despite near-term sales growth challenges, PANW's discounted valuation offers downside protection, making it an attractive long-term hold for investors seeking exposure to cybersecurity growth [13]