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Santa Clara, California-based Palo Alto Networks, Inc. (PANW) provides cybersecurity solutions worldwide. With a market cap of $111.3 billion, the company offers firewall appliances and software and Panorama, a security management solution for the global control of network security platforms.
Companies worth $10 billion or more are generally described as "large-cap stocks," Palo Alto Networks fits right into that category, with its market cap exceeding this threshold, reflecting its substantial size, influence, and dominance in the software infrastructure industry. It serves over 70,000 organizations in 150-plus countries.
The cybersecurity leader is currently down 9.7% from its 52-week high of $380.84, achieved on Feb. 9. Despite the pullback, PANW is up 16.4% over the past three months, outpacing the Dow Jones Industrials Average’s ($DOWI) 5% gains during the same time frame.
Over the longer term, PANW stock looks even more appealing. PANW rallied 40.3% over the past 52 weeks and 16.6% in 2024, outperforming Dow Jones’ 17.7% gains over the past year and 8.1% returns on a YTD basis.
To confirm the bullish trend, PANW has been consistently trading above its 200-day moving average since last year and above its 50-day moving average since late April with few fluctuations.
Shares of Palo Alto Networks jumped 7.2% following its fiscal Q4 earnings release on Aug. 19. The company reported sales of $2.2 billion and adjusted profit of $1.51 per share, both beating forecasts.
Additionally, the company's forecast for fiscal 2025 revenue and profit exceeded Wall Street estimates, driven by strong demand for its cybersecurity products.
Palo Alto Networks’ competitor, Zscaler, Inc. (ZS), has significantly underperformed PANW. ZS stock has declined marginally over the past year and 26.8% in 2024.
Due to PANW’s strong price action over the past year, analysts are optimistic, with a consensus rating of "Strong Buy" from 45 analysts. The mean target price of $375.07 represents a potential upside of 9.1% from current price levels.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
