Name of opportunity: 👀
Palo Alto Networks, Inc
Is this the best cybersecurity stock?: 🥇
Palo Alto has received a lot of positive coverage recently, with analysts and investors alike very pleased with the cybersecurity company’s fiscal fourth quarter results. Jefferies analysts as well as analysts at Citi both raised their target for the value of the stock. Analysts were impressed by the company’s ‘platformisation’, bundling together its products and services - consolidated deals, where customers bought at least one product from Palo Alto at once, were up 50% this quarter.
Palo Alto’s reputation looks especially glowing in comparison to CrowdStrike. Last month, computer systems that use CrowdStrike crashed worldwide, and the stock fell initially by 22%. Over time it has gradually recovered somewhat, but it is still in a dip compared to where it was before. The image below shows CrowdStrike’s drop over the past 6 months.
How hot is this investment opportunity? 🔥🔥🔥
Palo Alto is currently ranked as a ‘Buy’, and over the past 6 months it has risen in value by 32.39%. Its Q4 revenue was up 12% year over year - a growth it expects to repeat in its next earnings, in the fiscal first quarter 2025. Analysts are impressed by the company’s new initiative to integrate AI into its offering to customers, which may contribute to Palo Alto’s strength against its competitors.
However, analysts predict a 4.9% decrease in the next 12 months, reaching an average target price of $339.53. An analyst at MarketBeat reported yesterday that they think Palo Alto stock might reach an all time high soon. So while it’s recommended as a ‘Buy’, there’s no urgency to buy right now. Palo Alto doesn’t offer dividends and is classed as a growth stock, thanks to its high projected price-to-earnings ratio and strong revenue per share. The company is in ‘Above Average’ financial health.
Cybersecurity: 🔐
Palo Alto Networks, Inc. is a global cybersecurity provider. The company's cybersecurity platforms and services help secure enterprise users, networks, clouds and endpoints by delivering cybersecurity backed by artificial intelligence and automation. It focuses on delivering value in four areas: Network Security, Cloud Security, Security Operations and Threat Intelligence and Security Consulting. Palo Alto is headquartered in California and serves over 70,000 organisations across more than 150 countries. It was founded in 2005.
Which neme?: 🔍
‘This Week’s Earnings’, ‘Cybersecurity’
Download Nemo to check out Palo Alto Networks - or its recovering rival, CrowdStrike
