Palo Alto Networks (PANW, $508.05) fiscal Q4 earnings surge +49% year-over-year
Palo Alto Networks reported non-GAAP earnings of $2.39 per share for the three months ending in July ( its fiscal fourth quarter), which is +49.4% higher than the year-ago quarter’s figure.
The cybersecurity company’s revenues came in around $1.6 billion, with billings up 44% from last year to $2.685 billion.
Looking ahead into the coming fiscal year, Palo Alto Networks has projected revenues in the range of $6.85 billion to $6.9 billion, and non-GAAP earnings range of $9.40 to $9.50 per share.
"In the last year, we arguably saw the most challenging supply chain conditions the technology industry has ever seen. We executed through this well during the year with modest impacts to our gross margins," CEO Nikesh Arora said in a conference call late Monday.
"We expect conditions will eventually ease. For our planning, we're assuming a material improvement won't be seen prior to the end of fiscal year '23," Arora mentioned. "However, as the supply challenges fade, we expect this will start to have a favorable impact on our product gross margins.
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 .
Bearish Trend Analysis
The RSI Indicator has been in the overbought zone for 2 days. Expect a price pull-back in the near future.
The Stochastic Oscillator has been in the overbought zone for 1 day. 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 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 (52.632) is normal, around the industry mean (31.306). P/E Ratio (333.333) is within average values for comparable stocks, (168.128). Projected Growth (PEG Ratio) (1.343) is also within normal values, averaging (4.122). Dividend Yield (0.000) settles around the average of (0.040) among similar stocks. P/S Ratio (10.741) is also within normal values, averaging (70.523).
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.
Notable companies
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 68% 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% | +0.37% | ||
| CRWD - PANW | 68% Closely correlated | +2.90% | ||
| ZS - PANW | 65% Loosely correlated | +3.14% | ||
| FTNT - PANW | 64% Loosely correlated | +1.14% | ||
| SPLK - PANW | 63% Loosely correlated | -0.43% | ||
| QLYS - PANW | 59% Loosely correlated | -3.07% | ||
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