Palo Alto Networks Stock Is Down But Not Out - Worth Buying PANW Here?

Core Viewpoint - Palo Alto Networks (PANW) has reported strong Q3 free cash flow (FCF) and an increase in FCF margin on a trailing 12-month basis, indicating potential undervaluation of the stock, making it attractive for value investors [1] Financial Performance - PANW's stock is currently trading at $189.76, significantly below its recent peak of $221.28, suggesting a potential buying opportunity [1] - Analysts have set a price target of $212.16 per share, which is 11.8% higher than the current price, based on strong FCF margins and revenue forecasts [2] - The average price target from 55 analysts is $225.42, an increase from $224.59 a month ago, indicating positive sentiment among analysts [3] Options Strategy - Shorting out-of-the-money (OTM) put options has been discussed as a strategy to establish a lower potential buy-in point while generating income [4] - A previous short-put strategy involved a $180 strike price put option, which yielded a short-put yield of 2.56% for the next month, demonstrating the effectiveness of this approach [5] - Current options data shows that the $180 strike price put option for January 23, 2026, has a midpoint premium of $2.28, providing a one-month yield of 1.267% [6] - For less risk-averse investors, shorting the $185.00 put option offers a yield of 1.9189% for an investment of $18,500 [7]