Palo Alto Networks (PANW)

[winston]

not vested

Wedbush chose Palo Alto Networks (NYSE:PANW) as another outperform in the cybersecurity space.

The stock trades at just below $200 per share currently. Wedbush initiated a 12-month price target of $225 per share for PANW stock.

PANW’s next generation firewall products protect cloud networks. As such, their business has grown with the cloud. PANW boasts over 54,000 customers around the world, including 85% of the Fortune 100. In 2017, Fortune rated Palo Alto as one of the “50 companies changing the world.”

The growth figures, both from the past and from projections, both reflect this success. The company saw average an annual profit growth rate of 79.2% per year over the last five years.

While analysts believe that average annual growth will slow to 30.6% per yearfor the next five, they will remain among the fastest-growing cybersecurity stocks.

Even with this growth, the P/E ratio comes in at just over 40. While this makes PANW a bit expensive, it remains far from the triple-digit P/E ratios seen in other tech stocks.

Investors should also note that the 52-week high of $239.50 per share stands above Wedbush’s $225 per share price target. The PANW stock price has more than doubled from levels seen in early 2017. However, a correction beginning in September has taken the stock down by about 15%.

Still, I agree with Wedbush and believe the correction constitutes a hiccup in a long-term uptrend. With the massive growth and the company’s leadership in cloud security, I think the PANW stock price will reach and move beyond the $225 per share price target.

Source: Investor Place

[winston]

not vested

Wedbush chose Palo Alto Networks (NYSE:PANW) as another outperform in the cybersecurity space.

The stock trades at just below $200 per share currently. Wedbush initiated a 12-month price target of $225 per share for PANW stock.

PANW’s next generation firewall products protect cloud networks. As such, their business has grown with the cloud. PANW boasts over 54,000 customers around the world, including 85% of the Fortune 100. In 2017, Fortune rated Palo Alto as one of the “50 companies changing the world.”

The growth figures, both from the past and from projections, both reflect this success. The company saw average an annual profit growth rate of 79.2% per year over the last five years.

While analysts believe that average annual growth will slow to 30.6% per yearfor the next five, they will remain among the fastest-growing cybersecurity stocks.

Even with this growth, the P/E ratio comes in at just over 40. While this makes PANW a bit expensive, it remains far from the triple-digit P/E ratios seen in other tech stocks.

Investors should also note that the 52-week high of $239.50 per share stands above Wedbush’s $225 per share price target. The PANW stock price has more than doubled from levels seen in early 2017. However, a correction beginning in September has taken the stock down by about 15%.

Still, I agree with Wedbush and believe the correction constitutes a hiccup in a long-term uptrend. With the massive growth and the company’s leadership in cloud security, I think the PANW stock price will reach and move beyond the $225 per share price target.

Source: Investor Place

[winston]

not vested

Palo Alto Networks (PANW)
Earnings Report Date: Thursday, Nov. 29, after market close

Cybersecurity provider Palo Alto Networks (NYSE:PANW) hasn’t been granted quite the valuation of CRM and other pure software plays – but it’s been close.

All-time highs of $239 following fiscal Q4 earnings in September suggested a near-40x forward P/E multiple.

But that earnings report would prove to be the high point for PANW stock, as Luke Lango presciently argued at the time. PANW has pulled back some 32% as it heads into its fiscal Q1 report on Thursday. And a ~28x forward P/E — which is closer to ~24x backing out net cash — looks much more appropriate.

So will investors buy the dip if PANW, as it has the last six quarters, posts a big beat relative to consensus? If so, that would be good news not just for tech, but specifically the cybersecurity space.

Rivals like Fortinet (NASDAQ:FTNT) and FireEye (NASDAQ:FEYE) have pulled back of late (though FEYE’s strong Q3 report has kept it mostly afloat) after big gains over the past couple of years.

Trading out of the PANW report could show whether investors will bid the space back up or if the concerns that dogged cybersecurity stocks from 2015-2017 come roaring back.

Source: Investor Place

[winston]

not vested

Palo Alto Networks

Cyber security stock Palo Alto Networks Inc. (PANW - Get Report) has just received a stream of recent buy ratings from the Street.

One of these ratings comes from Oppenheimer analyst Shaul Eyal. He reiterated his rating following the company's stellar earnings results for the fiscal first quarter.

"PANW reported strong F1Q19 results beating almost every metric and raised F2Q19 guidance" stated Eyal. With the company firing on all cylinders, he "continues to view PANW's near-term momentum and long-term outlook with confidence."

Most notably, EPS of $1.17 beat consensus' $1.05E and revenue of $656M (+31% YoY) exceeded the Street's $632.1M. The robust quarter was driven by both a healthy security spending environment and strong product sales.

Looking forward, PANW is set for significant further share gains with a healthy revenue outlook for the current quarter. The company also announced its K-2 next generation firewall series for the service provider segment. Launch is now expected to occur in 2019.

Overall, this 'Strong Buy' stock boasts a $248 average analyst price target (43% upside potential).

Source: The Street

[winston]

not vested

Palo Alto Networks (PANW)

Growth Stocks to Buy That Are Growing Into Their Valuation: Palo Alto Networks (PANW)


Forward P/E Multiple 5 Years Ago: 385
Current Forward P/E Multiple: 42

Stock Price % Gain Past 5 Years: 260%
Most Recent Quarter Revenue Growth Rate: 30%

This stock has staged a huge rally over the past five years (up 260%), and did so without any multiple expansion. Instead, the stock’s forward earnings multiple actually dropped a whopping 90% during that stretch, from nearly 400 to right around 40.

How did that happen? Much like Facebook, Palo Alto Networks just kept growing. The company has continued to leverage secular cybersecurity tailwinds and a market-leading solution to drive consistent 20%-plus revenue growth over the past several years.

At the same time, margins have moved higher thanks to improved scale. The result? Big revenue growth on top of big margin expansion, which has driven doubly big profit growth.

Doubly big profit growth is how you get a stock to more than triple at the same time that its earnings multiple drops 90%. When you step back and think about it, that feat is actually almost jaw-dropping impressive.

Going forward, this dynamic should persist. Palo Alto Networks is still growing at a 30% rate. Margins are still moving higher. And, the tailwinds across this market are still there to support continued red-hot growth for the foreseeable future.

As such, big growth is here to stay, meaning that PANW stock will continue to grow into its valuation for the foreseeable future.

Source: Investor Place

[winston]

not vested

Palo Alto Networks (PANW)

Palo Alto Networks (NYSE:PANW) might be the simplest, “set it and forget it”, play among cybersecurity stocks.

Palo Alto has successfully transitioned away from a reliance on hardware and jumpstarted growth in the process.

Revenue in the third quarter, for instance, rose over 24% year-over-year, crushing analyst estimates.

At the moment, Palo Alto is the largest cybersecurity play … and the most diversified. If the market as a whole continues to grow, Palo Alto Networks should benefit.

That said, there are concerns, as I wrote after earnings. PANW stock isn’t cheap. And we’ve seen the cloud story break down elsewhere as spending has slowed.

PANW is the biggest stock in the space, and it has the simplest bull case. It’s going to rise if its market keeps growing. But at this point, it may be one of the better cybersecurity stocks, but not necessarily one of the best stocks in the space.

Source: Investor Place

[winston]

not vested

ANOTHER CYBERSECURITY WINNER TO END THE PANDEMIC YEAR

Today's company is thriving as it protects businesses from cybercrime...

With everyone "plugged in" today, the modern economy relies on a flow of data to keep running. As the pandemic drags on – with folks working from home and kids learning remotely – that is true now more than ever... And all the devices we use to work and learn every day need protection. That's where today's company comes in...

Palo Alto Networks (PANW) is a $30 billion global leader in cybersecurity. Serving 75,000 customers in more than 150 countries, Palo Alto helps companies stay secure as they use their networks.

And providing that protection is paying off... During the latest quarter, Palo Alto's revenue grew 23% year over year to $946 million. And management raised guidance for the fiscal year 2021.

As you can see, PANW shares are in an uptrend, up 40% this year. They recently hit an all-time high. As the pandemic increases the need for cybersecurity – and as more and more of our economy relies on technology – that uptrend should continue...

Source: Daily Wealth

[winston]

not vested

Why Raymond James Is Growing Bullish on This Big Cybersecurity Firm

by Chris Lange

Raymond James upgraded the shares to Outperform from Market Perform. Its $400 price target implies upside of 19% from the most recent closing price of $335.80.

Source: Wall Street

https://247wallst.com/technology-3/2021 ... rity-firm/

[winston]

not vested

Palo Alto Networks shares jumped as much as 9% in extended trading on Friday after the security software vendor reported earnings that exceeded analysts’ estimates.

Revenue in its fiscal fourth quarter increased 26% from $1.6 billion a year earlier.

Net income climbed to $227.7 million, or 74 cents a share, from $3.3 million, or a penny a share, a year ago.

For the first quarter, Palo Alto expects revenue of $1.82 billion to $1.85 billion, and sales for the year are expected to be $8.15 billion to $8.2 billion.

That’s below analyst expectations of $1.93 billion for the fiscal first quarter and $8.38 billion for the full year, according to Refinitiv.

Source: Phillips

[winston]

not vested

Palo Alto Networks Tumbles After Sales Forecast Disappoints

by Katrina Manson and Redd Brown

Revenue in the fiscal fourth quarter will be $2.15 billion to $2.17 billion.

The company’s third-quarter revenue rose 15% to $1.98 billion, marking the slowest growth since the start of 2020.

Earnings came in at $1.32 a share, excluding some items.

Source: Bloomberg

https://finance.yahoo.com/news/palo-alt ... 00174.html