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."
Momentum Indicator for PANW turns positive, indicating new upward trend
PANW saw its Momentum Indicator move above the 0 level on May 24, 2023. This is an indication that the stock could be shifting in to a new upward move. Traders may want to consider buying the stock or buying call options. Tickeron's A.I.dvisor looked at 77 similar instances where the indicator turned positive. In of the 77 cases, the stock moved higher in the following days. The odds of a move higher are at .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Moving Average Convergence Divergence (MACD) for PANW just turned positive on May 24, 2023. Looking at past instances where PANW's MACD turned positive, the stock continued to rise in of 42 cases over the following month. The odds of a continued upward trend are .
PANW moved above its 50-day moving average on May 24, 2023 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for PANW crossed bullishly above the 50-day moving average on May 16, 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 339 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 318 cases where PANW Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The RSI Indicator demonstrates that the ticker has stayed in the overbought zone for 3 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
The Stochastic Oscillator has been in the overbought zone for 2 days. Expect a price pull-back in the near future.
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 .
PANW broke above its upper Bollinger Band on May 24, 2023. 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.
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 89, placing this stock better than average.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is seriously undervalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
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 SMR rating for this company is (best 1 - 100 worst), indicating 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 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 (52.910) is normal, around the industry mean (31.526). P/E Ratio (333.333) is within average values for comparable stocks, (167.679). Projected Growth (PEG Ratio) (1.349) is also within normal values, averaging (4.163). Dividend Yield (0.000) settles around the average of (0.040) among similar stocks. P/S Ratio (10.787) is also within normal values, averaging (75.236).
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 closely correlated with CRWD. These tickers have moved in lockstep 67% of the time. This A.I.-generated data suggests there is a high statistical probability that if PANW jumps, then CRWD could also see price increases.
| Ticker / NAME | Correlation To PANW | 1D Price Change % | ||
|---|---|---|---|---|
| PANW | 100% | +0.43% | ||
| CRWD - PANW | 67% Closely correlated | +0.90% | ||
| ZS - PANW | 65% Loosely correlated | +0.58% | ||
| FTNT - PANW | 64% Loosely correlated | -0.31% | ||
| SPLK - PANW | 63% Loosely correlated | +0.14% | ||
| QLYS - PANW | 59% Loosely correlated | +2.73% | ||
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