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Palo Alto Networks, Inc. (PANW) Stock Guide

September 18, 2020
89
Bull Case
  • Revenue growth higher than the industry and sector averages
  • Company’s profitability is improving
  • Forward P/S ratio low relative to industry peers
  • Forward PEG ratio low relative to industry peers
  • Buy analyst rating
  • Average analyst stock price above current stock price
  • Cash/Debt ratio is higher than the industry and sector averages
  • Enterprise Value/Revenue ratio high relative to industry peers
Bear Case
  • High short interest

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.

Analysis

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

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 $242.47
Average Price Target / Upside $293.26 / 20.95%
Average Analyst Rating Buy
Forward Dividend Yield 0.00%
Industry Software - Application
Sector Technology
Number of Employees 5,856
Market Cap $24.68B
Forward P/E Ratio 37.28
Price/Book Ratio 7.24
Revenue (TTM) $3.41B
YoY Quarterly Revenue Growth 17.90%
Profit Margin -7.83%

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