Palo Alto Networks In the present day
(As of 10/21/2024 ET)
- 52-Week Vary
- $233.81
▼
$384.00
- P/E Ratio
- 52.19
- Worth Goal
- $375.79
Shares of Palo Alto Networks NASDAQ: PANW have had a stellar 12 months, with shares persevering with to construct on a 180% rally that began in early 2023. Now simply $5 shy of its all-time excessive from February, pleasure is rising for what’s subsequent.
With a market cap of $122 billion, the outlook for this California-based cybersecurity chief continues to enhance, pushed by robust demand for its product providing and its aggressive positioning.
As we head into the ultimate few weeks of the 12 months, there are a number of causes for traders to be enthusiastic about Palo Alto Networks’ inventory. Let’s leap in and have a look.
Palo Alto’s Constant Efficiency
To start out with, there’s the corporate’s elementary efficiency. Palo Alto Networks has been constantly crushing analyst expectations, and final August’s report was no totally different. As CFO Dipak Golechha summed up on the time, “We efficiently balanced worthwhile progress, as our non-GAAP working margins elevated by greater than 300 foundation factors for the 12 months with robust money era, marking top-of-the-line years for Palo Alto Networks.”
This type of optimism and momentum places stress, in a great way, on Palo Alto Networks to ship once more in subsequent month’s earnings report. For sure, the truth that its shares look set to proceed rallying into the discharge bodes properly for it.
There’s additionally the broader market backdrop to contemplate, and it is protected to say it is very a lot working in Palo Alto Community’s favor. The benchmark S&P 500 index is hitting recent all-time highs, which, in tandem with a dovish-leaning Fed, helps to gasoline a risk-on sentiment throughout shares typically.
Bullish Updates for PANW Inventory
Palo Alto Networks Inventory Forecast In the present day
$375.79
-0.69% Draw backAverage Purchase
Based mostly on 41 Analyst Rankings
| Excessive Forecast | $435.00 |
|---|---|
| Common Forecast | $375.79 |
| Low Forecast | $260.00 |
Past the robust elementary efficiency, it is value noting that a number of analysts are bullish on Palo Alto Community’s outlook. This month alone, the groups at KeyCorp, Barclays, Morgan Stanley, and BNP Paribas have all rated the inventory a Purchase. This builds on an analogous stance from Susquehanna in late September.
A lot of the optimism facilities on Palo Alto’s platformization technique and its robust positioning within the ever-growing demand for cybersecurity options. Every replace has urged the inventory has extra room to run, with KeyCorp’s value goal aiming significantly excessive. Contemplating Palo Alto Community shares closed out final week slightly below $375, KeyCorp’s value goal of $435 is pointing to a further upside of round 16%. For sure, had been Palo Alto Networks’ shares to pattern up in the direction of that degree within the coming weeks, they’d be at recent all-time highs.
Potential Issues: Palo Alto Networks’ Excessive P/E Ratio of 52
For these of us contemplating getting concerned, there are a number of issues value noting. First, Palo Alto Community’s price-to-earnings (P/E) ratio stands at 52, which is comparatively excessive in comparison with broader market averages. A inventory’s P/E ratio is a well-liked methodology of shortly ascertaining how costly or low-cost a inventory is to its friends and the broader market.
Nonetheless, whereas Palo Alto Community’s ratio may very well be referred to as a little bit excessive, it is nonetheless a lot decrease than their competitor CrowdStrike Holdings Inc’s NASDAQ: CRWD P/E ratio of 453.
Getting Concerned: Palo Alto Networks’ RSI Alerts Sturdy Demand
The inventory’s Relative Energy Index (RSI) studying of 66 can also be value noting. Whereas a little bit heat, it indicators robust underlying demand whereas falling in need of the overbought degree of 70. Actually, it has a protracted historical past of being round this degree, if not a bit increased, whereas the inventory remains to be logging constant good points.
Palo Alto Networks, Inc. (PANW) Worth Chart for Monday, October, 21, 2024
There’s slightly below a month to go till Palo Alto Networks’ subsequent earnings report, and all indicators level to the rally persevering with to assemble tempo within the meantime. The corporate has proven it could actually constantly beat analyst expectations, it has acquired some lofty value targets in latest weeks, and the technical indicators are, for now a minimum of, additionally supporting the bull’s case.
Traders ought to search for the inventory to hit a brand new all-time excessive within the coming weeks, with little resistance forward of it till it is properly above $400.
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