Palo Alto Networks(PANW, $332.41) gets a rating boost at Raymond James
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 sees MACD Histogram just turned negative
PANW saw its Moving Average Convergence Divergence Histogram (MACD) turn negative on September 18, 2023. This is a bearish signal that suggests the stock could decline going forward. Tickeron's A.I.dvisor looked at 42 instances where the indicator turned negative. In of the 42 cases the stock moved lower in the days that followed. This puts the odds of a downward move at .
Technical Analysis (Indicators)
Bearish Trend Analysis
The 10-day RSI Indicator for PANW moved out of overbought territory on September 12, 2023. 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 45 similar instances where the indicator moved out of overbought territory. In of the 45 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Momentum Indicator moved below the 0 level on September 15, 2023. You may want to consider selling the stock, shorting the stock, or exploring put options on PANW as a result. In of 77 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
PANW moved below its 50-day moving average on September 20, 2023 date and that indicates a change from an upward trend to a downward trend.
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 of 62 cases within the following month. The odds of a continued downward trend are .
Bullish Trend Analysis
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 4 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
The 10-day moving average for PANW crossed bullishly above the 50-day moving average on September 07, 2023. This indicates that the trend has shifted higher and could be considered a buy signal. In of 15 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 .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where PANW advanced for three days, in of 344 cases, the price rose further within the following month. The odds of a continued upward trend are .
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 of 327 cases where PANW Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Fundamental Analysis (Ratings)
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 90, placing this stock better than average.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable 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 Price Growth Rating for this company is (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 Valuation Rating of (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 (40.161) is normal, around the industry mean (21.026). P/E Ratio (178.571) is within average values for comparable stocks, (152.571). Projected Growth (PEG Ratio) (1.519) is also within normal values, averaging (2.632). Dividend Yield (0.000) settles around the average of (0.088) among similar stocks. P/S Ratio (11.299) is also within normal values, averaging (74.029).
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average 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.
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Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
General Information
a provider of network security solutions
Industry PackagedSoftware
PANW and
Correlation & Price change
A.I.dvisor indicates that over the last year, PANW has been loosely correlated with CRWD. These tickers have moved in lockstep 64% of the time. This A.I.-generated data suggests there is some statistical probability that if PANW jumps, then CRWD could also see price increases.
| Ticker / NAME | Correlation To PANW | 1D Price Change % | ||
|---|---|---|---|---|
| PANW | 100% | +0.47% | ||
| CRWD - PANW | 64% Loosely correlated | +0.02% | ||
| ZS - PANW | 62% Loosely correlated | +1.96% | ||
| FTNT - PANW | 59% Loosely correlated | -0.92% | ||
| NOW - PANW | 54% Loosely correlated | +0.83% | ||
| QLYS - PANW | 51% Loosely correlated | +1.37% | ||
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