Go to the list of all blogs
Sergey Savastiouk's Avatar
published in Blogs
Feb 27, 2019
TickeronGET DAILY SIGNALS
Palo Alto Networks (PANW, $235.55) rallies on higher-than-expected fiscal Q2 earnings and $1 billion stock buyback plan

Palo Alto Networks (PANW, $235.55) rallies on higher-than-expected fiscal Q2 earnings and $1 billion stock buyback plan

Palo Alto Networks reported better-than-expected earnings for the fiscal second quarter, and also announced a stock buyback program - leading to its shares jumping +11% in after-hours trading Tuesday.

The cybersecurity company raked in  adjusted earnings of $1.51 per share in the three months ending January, beating analysts’ estimates of $1.22 per share (based on Refinitiv data). Quarterly revenue of $711.2 million came in higher compared to analysts’ expected $682 million ((based on Refinitiv data). That marks a +30% year-over-year surge in revenue for the quarter. Product revenues, grew +33% to $271.6 million, while those from services increased +29% to $439.6 million.

Palo Alto also announced that its board authorized up to $1 billion in share repurchases, and introduced its Cortex AI-based security platform.

The company is apparently gung-ho in bolstering its cloud solutions and cyber security business. Last week, it announced its $560 million acquisition of Demisto, a startup specializing in security orchestration, incident management and interactive investigation. 

For the fiscal third quarter, Palo Alto projects adjusted earnings in the range of $1.23 to $1.25 per share. It expects revenue to be in the range of $697 million to $707 million for the quarter - that puts the midpoint at $702 million, which is higher than the $696.7 million FactSet estimate.

Related Ticker: PANW

Contributor

Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.


PANW in +5.56% Uptrend, rising for three consecutive days on October 27, 2026

Moving higher for three straight days is viewed as a bullish sign. Keep an eye on this stock for future growth. Considering data from situations where PANW advanced for three days, in 276 of 356 cases, the price rose further within the following month. The odds of a continued upward trend are 78%.

Price Prediction Chart

Technical Analysis (Indicators)

Bullish Trend Analysis

The Momentum Indicator moved above the 0 level on October 27, 2026. You may want to consider a long position or call options on PANW as a result. In 58 of 79 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 73%.

The Moving Average Convergence Divergence (MACD) for PANW just turned positive on October 27, 2026. Looking at past instances where PANW's MACD turned positive, the stock continued to rise in 30 of 46 cases over the following month. The odds of a continued upward trend are 65%.

PANW may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.

The Aroon Indicator entered an Uptrend today. In 205 of 270 cases where PANW Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 76%.

Bearish Trend Analysis

The 10-day RSI Indicator for PANW moved out of overbought territory on October 07, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 39 similar instances where the indicator moved out of overbought territory. In 26 of the 39 cases, the stock moved lower in the following days. This puts the odds of a move lower at 67%.

The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In 50 of 73 cases where PANW's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are 68%.

PANW moved below its 50-day moving average on October 30, 2026 date and that indicates a change from an upward trend to a downward trend.

The 10-day moving average for PANW crossed bearishly below the 50-day moving average on October 22, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In 12 of 17 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are 71%.

Following a 3-day decline, the stock is projected to fall further. Considering past instances where PANW declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 68%.

Fundamental Analysis (Ratings)

The Tickeron PE Growth Rating for this company is 1 (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.

The Tickeron Profit vs. Risk Rating rating for this company is 5 (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 91, placing this stock better than average.

The Tickeron Price Growth Rating for this company is 37 (best 1 - 100 worst), indicating steady price growth. PANW’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.

The Tickeron SMR rating for this company is 89 (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.

The Tickeron Valuation Rating of 100 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (10.886) is normal, around the industry mean (16.752). PANW has a moderately high P/E Ratio (892.366) as compared to the industry average of (58.881). Projected Growth (PEG Ratio) (2.002) is also within normal values, averaging (3.648). Dividend Yield (0.000) settles around the average of (0.269) among similar stocks. P/S Ratio (25.000) is also within normal values, averaging (103.889).

Notable companies

The most notable companies in this group are Microsoft Corp (NASDAQ:MSFT), Oracle Corp (NYSE:ORCL), Palo Alto Networks Inc (NASDAQ:PANW), Crowdstrike Holdings Inc (NASDAQ:CRWD), Block Inc (NYSE:XYZ), NetApp (NASDAQ:NTAP), Zscaler (NASDAQ:ZS), Okta (NASDAQ:OKTA), Twilio (NYSE:TWLO), MongoDB (NASDAQ:MDB).

Industry description

Computer communications industry develops technology that allows computing devices to exchange data with each other using connections/data links between nodes. Common types of computer network include Cloud (IAN), Internet, Wide (WAN, Local (LAN)/Wireless(WLAN) etc. The industry is an ever-more important part of technology, and is set to become even bigger as the Internet of Things (IoT) rapidly forays into the various aspects of our lives. Cisco Systems, Inc., Palo Alto Networks, Inc. and Arista Networks, Inc., Fortinet, Inc. are some of the major computer communications companies.

Market Cap

The average market capitalization across the Computer Communications Industry is 35.55B. The market cap for tickers in the group ranges from 48.8K to 3.88T. MSFT holds the highest valuation in this group at 3.88T. The lowest valued company is WMHI at 48.8K.

High and low price notable news

The average weekly price growth across all stocks in the Computer Communications Industry was -4%. For the same Industry, the average monthly price growth was -9%, and the average quarterly price growth was -0%. CHOW experienced the highest price growth at 113%, while PICS experienced the biggest fall at -49%.

Volume

The average weekly volume growth across all stocks in the Computer Communications Industry was 56%. For the same stocks of the Industry, the average monthly volume growth was 24% and the average quarterly volume growth was -7%

Fundamental Analysis Ratings

The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows

Valuation Rating: 49
P/E Growth Rating: 51
Price Growth Rating: 62
SMR Rating: 78
Profit Risk Rating: 90
Seasonality Score: 9 (-100 ... +100)
View a ticker or compare two or three
PANW
Daily Signal:
Gain/Loss:
Interact to see
Advertisement
A.I.Advisor
published price charts
A.I. Advisor
published General Information

General Information

a provider of network security solutions

Industry ComputerCommunications

Industry
Computer Communications
Address
3000 Tannery Way
Phone
+1 408 753-4000
Employees
21921
Web
https://www.paloaltonetworks.com
Interact to see
Advertisement
The Bitwise Solana Staking ETF (BSOL) advanced roughly 18% over the trailing 30 days, closely tracking a sharp rally in Solana (SOL). The move extends a broader recovery, with BSOL up approximately 77% over the past three months from its mid-2026 trough.
MSTY is an actively managed single-stock option income ETF (exchange-traded fund) that writes call options on Strategy (MSTR), formerly MicroStrategy, to generate current income. The portfolio is anchored by U.S. Treasury bills and MSTR option contracts rather than a diversified basket of equities, concentrating exposure in one volatile underlying.
AMDL has surged roughly +64% over the past 30 days, from about $47.59 to $78.10, mirroring a powerful rally in its sole underlying stock, AMD . The fund is a leveraged single-stock ETF (exchange-traded fund) designed to deliver 2x the daily return of AMD, amplifying both gains and losses.
TSMX, a 2x daily leveraged single-stock ETF (exchange-traded fund), rose roughly +19% over the trailing 30 days, rebounding sharply from mid-September lows. The fund seeks 200% of the daily return of TSM (Taiwan Semiconductor Manufacturing), meaning its moves are roughly double the underlying stock's daily swings.
Contracted revenue anchor: A roughly $3.2 billion, seven-year LNG (liquefied natural gas) supply agreement with Puerto Rico has received final approval, providing multi-year cash-flow visibility if execution stays on track. Project pipeline inflection: Upcoming milestones include the Barcarena and PortoCem power plants in Brazil, a potential Gás Sul terminal restart, and optimization of the company's modular "Fast LNG" (FLNG) liquefaction fleet.