Palo Alto Networks TodayPANWPalo Alto Networks$376.10 -2.31 (-0.61%) (As of 10/22/2024 ET)52-Week Range$233.81▼$384.00P/E Ratio51.88Price Target$375.79
Shares of Palo Alto Networks NASDAQ: PANW have had a stellar year, with shares continuing to build on a 180% rally that started in early 2023. Now just $5 shy of its all-time high from February, excitement is growing for what’s next.
With a market cap of $122 billion, the outlook for this California-based cybersecurity leader continues to improve, driven by strong demand for its product offering and its competitive positioning.Get Palo Alto Networks alerts:Sign Up
As we head into the final few weeks of the year, there are several reasons for investors to be excited about Palo Alto Networks’ stock. Let’s jump in and take a look.
Palo Alto’s Consistent Performance
To start with, there’s the company’s fundamental performance. Palo Alto Networks has been consistently crushing analyst expectations, and last August’s report was no different. As CFO Dipak Golechha summed up at the time, “We successfully balanced profitable growth, as our non-GAAP operating margins increased by more than 300 basis points for the year with strong cash generation, marking one of the best years for Palo Alto Networks.”
This kind of optimism and momentum puts pressure, in a good way, on Palo Alto Networks to deliver again in next month’s earnings report. Needless to say, the fact that its shares look set to continue rallying into the release bodes well for it.
There’s also the broader market backdrop to consider, and it’s safe to say it’s very much working in Palo Alto Network’s favor. The benchmark S&P 500 index is hitting fresh all-time highs, which, in tandem with a dovish-leaning Fed, is helping to fuel a risk-on sentiment across stocks in general.
Bullish Updates for PANW Stock
Palo Alto Networks Stock Forecast Today12-Month Stock Price Forecast:$376.820.19% UpsideModerate BuyBased on 41 Analyst RatingsHigh Forecast$450.00Average Forecast$376.82Low Forecast$260.00Palo Alto Networks Stock Forecast Details
Beyond the strong fundamental performance, it’s worth noting that several analysts are bullish on Palo Alto Network’s outlook. This month alone, the teams at KeyCorp, Barclays, Morgan Stanley, and BNP Paribas have all rated the stock a Buy. This builds on a similar stance from Susquehanna in late September.
Much of the optimism centers on Palo Alto’s platformization strategy and its strong positioning in the ever-growing demand for cybersecurity solutions. Each update has suggested the stock has more room to run, with KeyCorp’s price target aiming particularly high. Considering Palo Alto Network shares closed out last week just under $375, KeyCorp’s price target of $435 is pointing to an additional upside of around 16%. Needless to say, were Palo Alto Networks’ shares to trend up towards that level in the coming weeks, they’d be at fresh all-time highs.
Potential Concerns: Palo Alto Networks’ High P/E Ratio of 52
For those of us considering getting involved, there are a few concerns worth noting. First, Palo Alto Network’s price-to-earnings (P/E) ratio stands at 52, which is relatively high compared to broader market averages. A stock’s P/E ratio is a popular method of quickly ascertaining how expensive or cheap a stock is to its peers and the wider market.
However, while Palo Alto Network’s ratio could be called a little high, it’s still much lower than their competitor CrowdStrike Holdings Inc’s NASDAQ: CRWD P/E ratio of 453.
Getting Involved: Palo Alto Networks’ RSI Signals Strong Demand
The stock’s Relative Strength Index (RSI) reading of 66 is also worth noting. While a little warm, it signals strong underlying demand while falling short of the overbought level of 70. In fact, it has a long history of being around this level, if not a bit higher, while the stock is still logging consistent gains.
Palo Alto Networks, Inc. (PANW) Price Chart for Wednesday, October, 23, 2024
Investors should look for the stock to hit a new all-time high in the coming weeks, with little resistance ahead of it until it’s well above $400. Before you consider Palo Alto Networks, you’ll want to hear this.MarketBeat keeps track of Wall Street’s top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on… and Palo Alto Networks wasn’t on the list.While Palo Alto Networks currently has a “Moderate Buy” rating among analysts, top-rated analysts believe these five stocks are better buys.View The Five Stocks Here Click the link below and we’ll send you MarketBeat’s guide to investing in electric vehicle technologies (EV) and which EV stocks show the most promise. Get This Free Report
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