There's absolutely no question that the bulls are in charge on Wall Street. Recently, the mature stock-driven Dow Jones Industrial Average, benchmark S&P 500, and growth stock-propelled Nasdaq Composite reached the psychologically important plateaus of 45,000, 6,000, and 20,000, respectively.
PANW's 32% YTD surge highlights its cybersecurity dominance, but premium valuation suggests that holding the stock is the best move.
Cybersecurity companies are often scrutinized differently than other software companies. Unlike other products that can make life easier but aren't necessary, cutting cybersecurity spending from the budget can be dangerous.
Artificial intelligence (AI) stocks performed extraordinarily well this year -- and I'm not just talking about the AI chip king Nvidia. Since many believe AI can radically disrupt almost every part of daily life, investors are hunting for the best stocks in nearly every industry from cybersecurity to business analytics to consumer goods.
Palo Alto (PANW) has received quite a bit of attention from Zacks.com users lately. Therefore, it is wise to be aware of the facts that can impact the stock's prospects.
Palo Alto Networks Inc (NASDAQ:PANW) stock is on track for a record close and fifth-straight win today.
Palo Alto Networks, Inc. (NASDAQ:PANW ) UBS Technology Conference December 3, 2024 11:35 AM ET Company Participants Nikesh Arora - Chairman and CEO Conference Call Participants Roger Boyd - UBS Roger Boyd We'll get started. I'm Roger Boyd, I'm the cybersecurity analyst here.
Palo Alto's platformization strategy has triggered robust RPO and NGS ARR growth by the double digits on a YoY basis, exemplifying its improved cross-selling ability. Even then, it is apparent that monetization may be delayed, as observed in the management's underwhelming FY2025 top/bottom-line guidance. These developments are also why the consensus have lowered their forward estimates, with it triggering PANW's overly expensive valuations.
Palo Alto Networks NASDAQ: PANW is a prominent player in the cybersecurity sector, and the company has witnessed a remarkable 47% stock surge this year. Adding to this positive momentum, Palo Alto recently announced a 2-for-1 forward stock split scheduled for December.
Palo Alto Networks delivered strong 1Q FY2025 earnings results, with a significant rebound in bookings, reversing the downward momentum in backlog growth. PANW reclaimed the Rule of 40 with a 42.7% score, driven by strong expansion in operating margins; the guidance suggests this metric is likely to remain above 40% throughout FY2025. For the first time in the company's history, its billings experienced a sharp decline, significantly missing consensus and impacting operating cash flow in 1Q FY2025.
The S&P 500 is the most widely recognized stock market index in the U.S., consisting of the 500 largest companies in the country. Given the extensive reach of its member companies, it's considered by many to be the most reliable gauge of overall stock market performance.
Palo Alto Networks (PANW -3.04%) stock has delivered respectable gains of 30% so far this year, which is commendable considering that it started the year on a negative note and crashed big time in February after releasing its quarterly results.