Advertisement
PANW vs ZS
Which Stock Would AI Choose? Palo Alto Networks (PANW) vs. Zscaler (ZS) Stock Comparison
Key Takeaways
- PANW has delivered markedly stronger relative performance, while ZS has lagged despite solid fundamentals.
- Both companies are riding the same cybersecurity demand tailwind, but Palo Alto Networks is scaling faster through acquisitions and platform consolidation.
- Zscaler trades at a lower valuation multiple than PANW, reflecting a decelerating growth outlook for fiscal 2027.
- Palo Alto Networks is a much larger enterprise with broader product reach, while Zscaler remains a focused, cloud-native "zero trust" specialist.
- Investor sentiment currently skews more favorably toward PANW, though both carry premium technology valuations.
Introduction
Cybersecurity has become one of the market's most watched sectors as enterprises race to defend against artificial intelligence (AI)-driven threats. Within this space, PANW and ZS represent two distinct approaches to the same opportunity. This stock comparison is relevant for growth-oriented investors and traders seeking to understand how market positioning, relative performance, and valuation differentiate two prominent names in the same industry. Palo Alto Networks is a diversified platform vendor spanning network, cloud, and security operations, while Zscaler is a software-as-a-service (SaaS) pioneer built around zero trust architecture. Examining the two side by side clarifies the trade-offs between scale and specialization in today's market environment.
PANW Overview and Recent Performance
Palo Alto Networks is a global cybersecurity leader headquartered in Santa Clara, California, serving a broad enterprise customer base through three platforms: Network & AI Security, Cortex, and Idira (its identity security business, formerly CyberArk). Its "platformization" strategy consolidates many security tools into a unified offering, a thesis that has gained traction as customers seek simpler, AI-ready defenses.
Recent market activity has been notably strong for PANW. The stock has climbed sharply in recent months and is trading near multi-year highs, with substantial year-to-date gains. In its latest reported quarter, revenue rose 34% year over year, and Next-Generation Security annual recurring revenue (ARR) — a key metric measuring recurring subscription income — jumped 63% to $9.1 billion. Acquisitions of Chronosphere and CyberArk have expanded its reach into observability and identity, while newer AI security products have scaled quickly. Sentiment has been supported by record remaining performance obligations and strong free cash flow, though a premium valuation leaves the stock sensitive to any growth disappointment.
ZS Overview and Recent Performance
Zscaler is a cloud-native cybersecurity company based in San Jose, California, widely regarded as a pioneer of the zero trust model, which assumes no user or device is automatically trusted on a network. Its core offerings — Zscaler Internet Access and Zscaler Private Access — securely connect users, workloads, and increasingly AI agents to applications without traditional network hardware.
ZS has shown solid underlying execution in recent quarters, yet its relative performance has trailed its larger peer. In its latest reported quarter, revenue grew about 25% year over year to roughly $898 million, and ARR expanded at a similar pace to approximately $3.8 billion. However, guidance points to a meaningful deceleration, with fiscal 2027 revenue growth projected in the mid-to-high teens. The company recently reaffirmed its outlook at an investor day, emphasizing AI security, data security, and usage-based offerings as growth drivers. While the business remains profitable on a non-GAAP basis and holds a strong cash position, investor sentiment has been tempered by the slower growth trajectory and ongoing sales leadership transitions.
Trending AI Robots
For traders seeking a systematic edge, Tickeron's Trending AI Robots page highlights a curated selection of the platform's AI Trading Bots. Tickeron hosts hundreds of AI-driven trading bots covering thousands of different tickers, each with its own trading style, strategy, timeframe, performance statistics, and set of securities it trades. Only the bots best suited to current market conditions earn a place in this featured section, helping users filter through a large universe to find potentially relevant tools. Whether a bot focuses on short-term momentum, swing trading, or longer-horizon positioning, the diversity of approaches means traders can explore options aligned with their own objectives. To review the current lineup of featured strategies, visit the Trending AI Robots page.
Head-to-Head Comparison
The clearest contrast between these two names is scale versus focus. Palo Alto Networks is a diversified platform with a market capitalization roughly ten times that of Zscaler, spanning firewalls, cloud security, identity, and observability — much of it built through acquisitions. Zscaler, by contrast, is a pure-play SaaS vendor concentrated in zero trust and secure access, competing primarily on architectural simplicity rather than breadth.
Growth trajectories are also diverging. PANW is sustaining strong revenue and ARR growth partly through inorganic expansion, while ZS is guiding toward a slower organic growth rate as it transitions its sales model and integrates newer products. On valuation, Zscaler trades at a lower price-to-sales and forward earnings multiple, reflecting that reduced growth visibility, whereas PANW commands a premium that embeds higher expectations.
Risk profiles differ as well. Palo Alto Networks carries acquisition-integration risk and margin pressure from a shift toward cloud-based offerings. Zscaler faces execution risk around sales leadership changes, elevated competition, and stock-based compensation. Both are exposed to competition from large cloud providers and potential slowdowns in security spending.
Tickeron AI Verdict
Based on observable factors, Tickeron's AI would likely favor PANW in the current environment. Its trend consistency, stronger relative momentum, broader platform adoption, and multiple growth catalysts — including scaling AI security offerings and newly integrated acquisitions — provide a steadier backdrop than Zscaler's slower-growth outlook and ongoing sales reorganization. The AI framework would weigh Palo Alto Networks' more robust trend signals and larger, more diversified revenue base as advantages in relative positioning. That said, this assessment is probabilistic rather than definitive; Zscaler's lower valuation and specialized zero trust franchise could become more attractive if its growth re-accelerates. No outcome is guaranteed, and relative leadership can shift quickly as new data emerges.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
To compare these two companies we present long-term analysis, their fundamental ratings and make comparative short-term technical analysis which are presented below. The conclusion is PANW is a Buy and ZS is a StrongBuy.
PANW in upward trend: price may jump up because it broke its lower Bollinger Band on November 05, 2026
PANW may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options. In 34 of 40 cases where PANW's price broke its lower Bollinger Band, its price rose further in the following month. The odds of a continued upward trend are 85%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The RSI Indicator entered the oversold zone -- be on the watch for PANW's price rising or consolidating in the future. That's also the time to consider buying the stock or exploring call options.
The Stochastic Oscillator demonstrated that the ticker has stayed in the oversold zone for 2 days, which means it's wise to expect a price bounce in the near future.
Following a +5.56% 3-day Advance, the price is estimated to grow further. 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%.
The Aroon Indicator entered an Uptrend today. In 201 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 74%.
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on November 05, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on PANW as a result. In 56 of 79 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 71%.
The Moving Average Convergence Divergence Histogram (MACD) for PANW turned negative on November 02, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 45 similar instances when the indicator turned negative. In 29 of the 45 cases the stock turned lower in the days that followed. This puts the odds of success at 64%.
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 10 of 16 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 62%.
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 14 (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 92, placing this stock better than average.
The Tickeron Price Growth Rating for this company is 42 (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 (9.363) is normal, around the industry mean (16.722). PANW has a moderately high P/E Ratio (767.488) as compared to the industry average of (53.333). Projected Growth (PEG Ratio) (2.002) is also within normal values, averaging (3.648). Dividend Yield (0.000) settles around the average of (0.371) among similar stocks. P/S Ratio (25.000) is also within normal values, averaging (103.889).
ZS in -9.42% downward trend, sliding for three consecutive days on November 05, 2026
Moving lower for three straight days is viewed as a bearish sign. Keep an eye on this stock for future declines. Considering data from situations where ZS declined for three days, in 224 of 279 cases, the price declined further within the following month. The odds of a continued downward trend are 80%.
Technical Analysis (Indicators)
Bearish Trend Analysis
The 10-day RSI Indicator for ZS moved out of overbought territory on October 29, 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 36 similar instances where the indicator moved out of overbought territory. In 28 of the 36 cases, the stock moved lower in the following days. This puts the odds of a move lower at 78%.
The Momentum Indicator moved below the 0 level on November 04, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on ZS as a result. In 60 of 81 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 74%.
The Moving Average Convergence Divergence Histogram (MACD) for ZS turned negative on November 02, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 46 similar instances when the indicator turned negative. In 34 of the 46 cases the stock turned lower in the days that followed. This puts the odds of success at 74%.
ZS moved below its 50-day moving average on November 05, 2026 date and that indicates a change from an upward trend to a downward trend.
ZS broke above its upper Bollinger Band on October 23, 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.
Bullish Trend Analysis
The Stochastic Oscillator demonstrated that the ticker has stayed in the oversold zone for 1 day, which means it's wise to expect a price bounce in the near future.
Following a +9.54% 3-day Advance, the price is estimated to grow further. Considering data from situations where ZS advanced for three days, in 260 of 345 cases, the price rose further within the following month. The odds of a continued upward trend are 75%.
The Aroon Indicator entered an Uptrend today. In 182 of 230 cases where ZS Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 79%.
Fundamental Analysis (Ratings)
The Tickeron Valuation Rating of 2 (best 1 - 100 worst) indicates that the company is seriously undervalued 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 (12.795) is normal, around the industry mean (16.722). ZS has a moderately low P/E Ratio (-522.769) as compared to the industry average of (53.333). Projected Growth (PEG Ratio) (2.043) is also within normal values, averaging (3.648). Dividend Yield (0.000) settles around the average of (0.371) among similar stocks. P/S Ratio (9.158) is also within normal values, averaging (103.889).
The Tickeron Price Growth Rating for this company is 39 (best 1 - 100 worst), indicating steady price growth. ZS’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 92 (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 PE Growth Rating for this company is 95 (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.
The Tickeron Profit vs. Risk Rating rating for this company is 100 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. ZS’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 92, placing this stock worse than average.
PANW | ZS | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 56 | 87 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 100 Overvalued | 2 Undervalued | |
PROFIT vs RISK RATING 1..100 | 14 | 100 | |
SMR RATING 1..100 | 89 | 92 | |
PRICE GROWTH RATING 1..100 | 42 | 39 | |
P/E GROWTH RATING 1..100 | 1 | 95 | |
SEASONALITY SCORE 1..100 | 50 | n/a |
Tickeron ratings are formulated such that a rating of 1 designates the most successful stocks in a given industry, while a rating of 100 points to the least successful stocks for that industry.
ZS's Valuation (2) in the Packaged Software industry is significantly better than the same rating for PANW (100) in the Computer Communications industry. This means that ZS’s stock grew significantly faster than PANW’s over the last 12 months.
PANW's Profit vs Risk Rating (14) in the Computer Communications industry is significantly better than the same rating for ZS (100) in the Packaged Software industry. This means that PANW’s stock grew significantly faster than ZS’s over the last 12 months.
PANW's SMR Rating (89) in the Computer Communications industry is in the same range as ZS (92) in the Packaged Software industry. This means that PANW’s stock grew similarly to ZS’s over the last 12 months.
ZS's Price Growth Rating (39) in the Packaged Software industry is in the same range as PANW (42) in the Computer Communications industry. This means that ZS’s stock grew similarly to PANW’s over the last 12 months.
PANW's P/E Growth Rating (1) in the Computer Communications industry is significantly better than the same rating for ZS (95) in the Packaged Software industry. This means that PANW’s stock grew significantly faster than ZS’s over the last 12 months.
| PANW | ZS | |
|---|---|---|
| RSI ODDS (%) | 1 day ago 83% | 1 day ago 78% |
| Stochastic ODDS (%) | 1 day ago 85% | 1 day ago 80% |
| Momentum ODDS (%) | 1 day ago 71% | 1 day ago 74% |
| MACD ODDS (%) | 1 day ago 64% | 1 day ago 74% |
| TrendWeek ODDS (%) | 1 day ago 66% | 1 day ago 78% |
| TrendMonth ODDS (%) | 1 day ago 61% | 1 day ago 80% |
| Advances ODDS (%) | 11 days ago 78% | 12 days ago 75% |
| Declines ODDS (%) | 1 day ago 68% | 1 day ago 80% |
| BollingerBands ODDS (%) | 1 day ago 85% | 1 day ago 80% |
| Aroon ODDS (%) | 1 day ago 74% | 1 day ago 79% |
Long-Term Analysis
It is best to consider a long-term outlook for a ticker by using Fundamental Analysis (FA) ratings. The rating of 1 to 100, where 1 is best and 100 is worst, is divided into thirds. The first third (a green rating of 1-33) indicates that the ticker is undervalued; the second third (a grey number between 34 and 66) means that the ticker is valued fairly; and the last third (red number of 67 to 100) reflects that the ticker is overvalued. We use an FA Score to show how many ratings show the ticker to be undervalued (green) or overvalued (red).
PANW’s FA Score shows that 2 FA rating(s) are green while ZS’s FA Score has 1 green FA rating(s).
- PANW’s FA Score: 2 green, 3 red.
- ZS’s FA Score: 1 green, 4 red.
Short-Term Analysis
It is best to consider a short-term outlook for a ticker by using Technical Analysis (TA) indicators. We use Odds of Success as the percentage of outcomes which confirm successful trade signals in the past.
If the Odds of Success (the likelihood of the continuation of a trend) for each indicator are greater than 50%, then the generated signal is confirmed. A green percentage from 90% to 51% indicates that the ticker is in a bullish trend. A red percentage from 90% - 51% indicates that the ticker is in a bearish trend. All grey percentages are below 50% and are considered not to confirm the trend signal.
PANW’s TA Score shows that 5 TA indicator(s) are bullish while ZS’s TA Score has 3 bullish TA indicator(s).
- PANW’s TA Score: 5 bullish, 5 bearish.
- ZS’s TA Score: 3 bullish, 6 bearish.
Price Growth
PANW (@Computer Communications) experienced а -17.32% price change this week, while ZS (@Computer Communications) price change was -17.73% for the same time period.
The average weekly price growth across all stocks in the @Computer Communications industry was -12.21%. For the same industry, the average monthly price growth was -17.24%, and the average quarterly price growth was -11.10%.
Reported Earning Dates
PANW is expected to report earnings on Nov 18, 2026.
ZS is expected to report earnings on Nov 24, 2026.
Industries' Descriptions
@Computer Communications (-12.21% weekly)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.
Advertisement
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 85% 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% | -9.59% | ||
| CRWD - PANW | 85% Closely correlated | -9.88% | ||
| FTNT - PANW | 72% Closely correlated | -5.32% | ||
| OKTA - PANW | 71% Closely correlated | -10.41% | ||
| RBRK - PANW | 66% Loosely correlated | -11.14% | ||
| S - PANW | 65% Loosely correlated | -8.81% | ||
More | ||||
ZS and
Correlation & Price change
A.I.dvisor indicates that over the last year, ZS 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 ZS jumps, then CRWD could also see price increases.