Palo Alto Networks shares got a rating upgrade, from a Raymond James analyst on what the latter perceives as significant underperformance.
The cybersecurity company’s shares were boosted to outperform from market perform by Raymond James analyst Adam Tindle . The analyst has a $400 price target on the shares.
Tindle said in a note that Palo Alto Networks "has underperformed significantly year to date, and we previously noted our concern that next gen [annual recurring revenue] guidance did not appear conservative." "We do still see this as a risk, but the stock has been penalized as relative valuation has compressed," Tindle said. "[And] our focus has now been turned to increased confidence that PANW can enter into a period of healthy growth and incremental profitability that are hallmarks of outperforming stocks in this space."
According to Tindle, Palo Alto experienced “a sustained period of healthy growth and operating leverage for the better part of prior CEO Mark McLaughlin's tenure." But the analyst also mentioned that significant acquisitions under current CEO Nikesh Arora have resulted in a period of depressed operating margin “while peer Fortinet has balanced organic growth with improving profitability and significantly outperformed during this period." The analyst added, "this creates an opportunity for Palo Alto as the previously noted Prisma platform is hitting an inflection, new [Chief Financial Officer] Dipak Golechha can be a catalyst for change in showing more operational improvement alongside this, and a revamped [investor-relations] effort should aid in communicating this story."
PANW moved above its 50-day moving average on September 14, 2026 date and that indicates a change from a downward trend to an upward trend. In 40 of 47 similar past instances, the stock price increased further within the following month. The odds of a continued upward trend are 85%.
The Momentum Indicator moved above the 0 level on September 16, 2026. You may want to consider a long position or call options on PANW as a result. In 54 of 78 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 69%.
The Moving Average Convergence Divergence (MACD) for PANW just turned positive on September 15, 2026. Looking at past instances where PANW's MACD turned positive, the stock continued to rise in 31 of 45 cases over the following month. The odds of a continued upward trend are 69%.
The 10-day moving average for PANW crossed bullishly above the 50-day moving average on September 18, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 12 of 16 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 75%.
Following a +4.13% 3-day Advance, the price is estimated to grow further. Considering data from situations where PANW advanced for three days, in 271 of 353 cases, the price rose further within the following month. The odds of a continued upward trend are 77%.
The Aroon Indicator entered an Uptrend today. In 202 of 277 cases where PANW Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 73%.
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 27 of the 39 cases, the stock moved lower in the following days. This puts the odds of a move lower at 69%.
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In 49 of 74 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 66%.
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%.
PANW broke above its upper Bollinger Band on October 06, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Tickeron PE Growth Rating for this company is 2 (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 3 (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 4 (best 1 - 100 worst), indicating outstanding 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 99 (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 (11.669) is normal, around the industry mean (17.861). PANW has a moderately high P/E Ratio (980.225) as compared to the industry average of (159.605). Projected Growth (PEG Ratio) (2.002) is also within normal values, averaging (3.648). Dividend Yield (0.000) settles around the average of (0.004) among similar stocks. P/S Ratio (25.000) is also within normal values, averaging (104.490).
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a provider of network security solutions
Industry ComputerCommunications