Palo Alto Networks (PANW) stock: is it overbought?

1:18 pm ET, 06 Sep 2018

Palo Alto Networks, Inc. (PANW) shares are trading at 231.58, up 0.22%.  The company is expected to report earnings on September 6 after market close. What's driving PANW stock price? What's PANW stock price forecast?

Palo Alto shares are up 54% year-to-date and investors continue to be optimistic about the company’s growth. The company is a leader in the cybersecurity business. Its firewalls and cloud-based services are in great demand in the modern era of business computing.

In the third quarter revenue grew 31% to $567.1 million. Product revenue grew 30% to $215.2 million, subscription revenue was up 38% to $192.5 million, and support revenue increased 25% to $159.4 million. 

The company which acquired public cloud services infrastructure protection company for $300 million and Israel-based Secdo earlier this year is expected to continue with its acquisitions.

Investors will be closely watching the new CEO Nikesh Arora’s first earnings call. Arora has served in the top positions at Google and Softbank Group. The next quarter results will be released after market close on September 06, 2018.

What is the sentiment towards the PANW stock? Our technical analysis shows that: 

  • The stock short-term sentiment (next 30 days) is trending positive;
  • The mid-term sentiment (3-6 months) is trending positive;
  • The long-term sentiment (9-12 months) is trending positive. 

Palo Alto Networks (PANW) forward P/E ratio is 43.55, and it’s high compared to its industry peers’ P/E ratios.

Palo Alto Networks, Inc. (PANW) short share of float is 4.61%. The stock is much more frequently shorted than the average industry, sector or S&P 500 stock.

Palo Alto Networks, Inc. (PANW) average analyst price target ($207.94) is -10.21% below its current price ($231.58).

For the latest price and information on Palo Alto Networks, Inc., please visit Finstead and search for "PANW price" or "PANW news".

Palo Alto Networks (PANW) Acquiring Secdo: What's The Impact On The Stock?

12:56 pm ET, 10 Apr 2018

Palo Alto Networks (NYSE: PANW) announced today that it has entered into a definitive agreement to acquire Secdo, a Series-A funded security startup. The acquisition brings Endpoint Detection and Response, or EDR, capabilities to Palo Alto Networks.  

The deal may be financially insignificant--and also in the near term, it's not likely to change the outlook for Palo Alto Networks.  

However, what's noticeable is that Palo Alto Networks continues to mature its perspective on security, leaving behind the idea that "prevention is everything", and acknowledging the importance of broader visibility among enterprise customers.

The consensus analyst rating for PANW is Buy.  Based on Finstead research, the stock seems to be a bit overvalued (visit Finstead and type "PANW upside" or "PANW price target"). 

Shares of Palo Alto Networks are trading at around $187 today.  The research form Stifel reaffirmed the Buy rating on Palo Alto Networks (NYSE: PANW) with a price target of $200.00 today.  

It's been a good year thus far for Palo Alto Networks.  The stock appreciated 25% since the beginning of the year.    

Palo Alto Networks, Inc. (PANW) Stock Guide

Updated at: 9:48 am ET, 18 Sep 2020

Before we start: if you're looking for PANW stock price, you can quickly find it out by visiting Finny and typing "PANW quote". If you're looking for a quick scoop on PANW stock (chart, price target, market cap, news and buy or sell analysis), go to Finny and look for "PANW". You'll get all this info in one place. Or you can just type "PANW news" to get the latest stock news.

Looking to buy or sell Palo Alto Networks, Inc. (PANW)? Interested in getting the full scoop on PANW, including earnings and dividends, stock forecast, buy or sell analysis and key stats? If so, you came to the right place.

In this PANW stock guide, we'll address key questions about PANW, above and beyond what you can find on Yahoo Finance, Zacks, MarketWatch or Morningstar.

Here is what you'll be able to find in this guide:

Earnings and Dividends: earnings, earnings date, dividend rate and dividend yield;
Analyst Predictions: stock forecast and analyst ratings;
Analysis: Finny Score and buy or sell analysis;
Key Stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio, industry, sector, and number of employees.

And here is the list of questions we'll answer:
1. What are PANW earnings?
2. What is PANW stock forecast (i.e., prediction)?
3. PANW buy or sell? What is PANW Finny Score?
4. What are the reasons to buy PANW? Why should I buy PANW stock?
5. What are the reasons to sell PANW? Why should I sell PANW stock?
6. What are PANW key stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

So let's start. Scroll down to the question that interests you the most.

Earnings and Dividends

1. What are PANW earnings?

PANW trailing 12-month earnings per share (EPS) is -$2.76.

Analyst Predictions

2. What is PANW stock forecast (i.e., prediction)?

Based on PANW analyst price targets, PANW stock forecast is $291.46 (for a year from now). That means the average analyst price target for PANW stock is $291.46. The prediction is based on 41 analyst estimates.

The low price target for PANW is $175.00, while the high price target is $340.00.

PANW analyst rating is Buy.


3. PANW buy or sell? What is PANW Finny Score?

#{finnyScore:89}Our quantitative analysis shows 8 reasons to buy and 1 reason to sell PANW, resulting in Finny Score of 89.

4. What are the reasons to buy PANW? Why should I buy PANW stock?

Here are the reasons to buy PANW stock:

  • Palo Alto’s early entry into the virtual firewall market gave the company a first-mover advantage.
  • Palo Alto is now focused on selling a highly integrated "platform" approach to the security, which we think will resonate with customers.
  • We expect Palo Alto to continue expanding its subscription services business, including via bolt-on acquisitions, which could bode well for future gross margin expansion.
  • PANW quarterly revenue growth was 17.90%, higher than the industry and sector average revenue growth (1.11% and 0.89%, respectively). See PANW revenue growth chart.
  • PANW profitability is improving. The YoY profit margin change was 5.79 percentage points. See PANW profitability chart.
  • PANW Price/Sales ratio is 7.32, which is low compared to its industry peers’ P/S ratios. See PANW forward Price/Sales ratio chart.
  • PANW PEG ratio (P/E adjusted for growth) is 2.91, which is low compared to its industry peers’ PEG ratios. See PANW PEG chart.
  • PANW average analyst rating is Buy. See PANW analyst rating chart.
  • PANW average analyst price target ($291.46) is above its current price ($243.38). See PANW price target chart.
  • PANW cash to debt ratio is 1.10, higher than the average industry (0.16) and sector (0.17) cash to debt ratio. See PANW cash to debt chart.
  • PANW Enterprise Value/Revenue multiple is 7.15, which is low compared to its industry peers’ Enterprise Value/Revenue multiples. See PANW Enterprise Value/Revenue chart.

5. What are the reasons to sell PANW? Why should I sell PANW stock?

Let's look at the reasons to sell PANW stock (i.e., the bear case):

  • Palo Alto faces a host of well-capitalized competitors, such as Cisco, with its renewed focus on security; Juniper; CheckPoint Software; and an enterprise push by Fortinet.
  • Palo Alto’s push into the carrier infrastructure market may not pan out as expected, given its reliance on merchant silicon chipsets.
  • We think that Palo Alto has been served well by an aggressive marketing push, but its products and technological capabilities will have to deliver on these promises for network engineers.
  • PANW short interest (days to cover the shorts) ratio is 5.74. The stock garners more short interest than the average industry, sector or S&P 500 stock. See PANW short interest ratio chart.

Key Stats

6. What are PANW key stats : revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

Let's look at the key statistics for PANW:

Metrics PANW
Price $241.92
Average Price Target / Upside $291.46 / 20.48%
Average Analyst Rating Buy
Forward Dividend Yield 0.00%
Industry Software - Application
Sector Technology
Number of Employees 5,856
Market Cap $24.94B
Forward P/E Ratio 37.57
Price/Book Ratio 7.32
Revenue (TTM) $3.41B
YoY Quarterly Revenue Growth 17.90%
Profit Margin -7.83%

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