Is Palo Alto Stock a Good Investment?
Palo Alto Investment Advice | PANW |
- Examine Palo Alto's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Palo Alto's leadership team and their track record. Good management can help Palo Alto navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Systems Software space and any emerging trends that could impact Palo Alto's business and its evolving consumer preferences.
- Compare Palo Alto's performance and market position to its competitors. Analyze how Palo Alto is positioned in terms of product offerings, innovation, and market share.
- Check if Palo Alto pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Palo Alto's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Palo Alto Networks stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Palo Alto Networks is a good investment.
Sell | Buy |
Hold
Market Performance | Modest | Details | |
Volatility | Very steady | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | Very Low | Details | |
Economic Sensitivity | Responds to the market | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Strong Buy | Details | |
Financial Strenth (F Score) | Strong | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine Palo Alto Stock
Researching Palo Alto's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 81.0% of the company shares are owned by institutional investors. The company has Price/Earnings To Growth (PEG) ratio of 2.79. Palo Alto Networks recorded earning per share (EPS) of 7.73. The entity had not issued any dividends in recent years. The firm had 3:1 split on the 14th of September 2022.
To determine if Palo Alto is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Palo Alto's research are outlined below:
| Palo Alto Networks is unlikely to experience financial distress in the next 2 years | |
| Palo Alto Networks currently holds 1.41 B in liabilities. Palo Alto Networks has a current ratio of 0.75, indicating that it has a negative working capital and may not be able to pay financial obligations when due. Note, when we think about Palo Alto's use of debt, we should always consider it together with its cash and equity. | |
| Palo Alto Networks has a strong financial position based on the latest SEC filings | |
| Over 81.0% of the company shares are owned by institutional investors | |
| Latest headline from investing.com: Disposition of 300 shares by Nir Zuk of Palo Alto at 5.793 subject to Rule 16b-3 |
Palo Alto uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Palo Alto Networks. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Palo Alto's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 20th of February 2024 Upcoming Quarterly Report | View | |
| 28th of May 2024 Next Financial Report | View | |
| 31st of January 2024 Next Fiscal Quarter End | View | |
| 16th of August 2024 Next Fiscal Year End | View | |
| 31st of October 2023 Last Quarter Report | View | |
| 31st of July 2023 Last Financial Announcement | View |
Earnings surprises can significantly impact Palo Alto's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Palo Alto's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2015-09-09 | 2015-07-31 | 0.08 | 0.09 | 0.01 | 12 | ||
2015-05-27 | 2015-04-30 | 0.07 | 0.08 | 0.01 | 14 | ||
2014-11-24 | 2014-10-31 | 0.04 | 0.05 | 0.01 | 25 | ||
2014-05-28 | 2014-04-30 | 0.03 | 0.04 | 0.01 | 33 | ||
2013-11-25 | 2013-10-31 | 0.02 | 0.03 | 0.01 | 50 | ||
2013-02-28 | 2013-01-31 | 0.01 | 0.02 | 0.01 | 100 | ||
2017-05-31 | 2017-04-30 | 0.18 | 0.2 | 0.02 | 11 | ||
2018-02-26 | 2018-01-31 | 0.26 | 0.29 | 0.03 | 11 |
Know Palo Alto's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Palo Alto is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Palo Alto Networks backward and forwards among themselves. Palo Alto's institutional investor refers to the entity that pools money to purchase Palo Alto's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Legal & General Group Plc | 2024-06-30 | 3.2 M | Jennison Associates Llc | 2024-09-30 | 3.1 M | Ubs Group Ag | 2024-06-30 | 3.1 M | Nuveen Asset Management, Llc | 2024-06-30 | 3 M | Royal Bank Of Canada | 2024-06-30 | 2.9 M | Goldman Sachs Group Inc | 2024-06-30 | 2.8 M | Ubs Asset Mgmt Americas Inc | 2024-09-30 | 2.7 M | Norges Bank | 2024-06-30 | 2.7 M | Amvescap Plc. | 2024-06-30 | 2.6 M | Vanguard Group Inc | 2024-09-30 | 30 M | Morgan Stanley - Brokerage Accounts | 2024-06-30 | 28 M |
Palo Alto's market capitalization trends
The company currently falls under 'Mega-Cap' category with a current market capitalization of 130.06 B.Market Cap |
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Palo Alto's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.16 | 0.17 | |
| Return On Capital Employed | 0.06 | 0.06 | |
| Return On Assets | 0.13 | 0.14 | |
| Return On Equity | 0.50 | 0.52 |
Determining Palo Alto's profitability involves analyzing its financial statements and using various financial metrics to determine if Palo Alto is a good buy. For example, gross profit margin measures Palo Alto's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Palo Alto's profitability and make more informed investment decisions.
Palo Alto's Earnings Breakdown by Geography
Please note, the imprecision that can be found in Palo Alto's accounting process means that the reasonable investor should take a skeptical approach toward the financial statement analysis of Palo Alto Networks. Check Palo Alto's Beneish M Score to see the likelihood of Palo Alto's management manipulating its earnings.
Evaluate Palo Alto's management efficiency
Palo Alto Networks has return on total asset (ROA) of 0.0322 % which means that it generated a profit of $0.0322 on every $100 spent on assets. This is way below average. Similarly, it shows a return on stockholder's equity (ROE) of 0.7452 %, meaning that it created $0.7452 on every $100 dollars invested by stockholders. Palo Alto's management efficiency ratios could be used to measure how well Palo Alto manages its routine affairs as well as how well it operates its assets and liabilities. Return On Tangible Assets is likely to climb to 0.17 in 2024. Return On Capital Employed is likely to climb to 0.06 in 2024. At this time, Palo Alto's Return On Assets are fairly stable compared to the past year. Asset Turnover is likely to climb to 0.64 in 2024, whereas Intangibles To Total Assets are likely to drop 0.14 in 2024.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 16.20 | 17.01 | |
| Tangible Book Value Per Share | 4.53 | 4.75 | |
| Enterprise Value Over EBITDA | 80.89 | 84.93 | |
| Price Book Value Ratio | 20.05 | 21.57 | |
| Enterprise Value Multiple | 80.89 | 84.93 | |
| Price Fair Value | 20.05 | 21.57 | |
| Enterprise Value | 46.7 B | 49 B |
Leadership effectiveness at Palo Alto Networks is a strong indicator of its financial stability. We analyze various metrics to provide insights into the stock's investment viability.
Beta 1.118 |
Basic technical analysis of Palo Stock
As of the 28th of November, Palo Alto holds the Coefficient Of Variation of 826.34, risk adjusted performance of 0.0983, and Semi Deviation of 1.75. Compared to fundamental indicators, the technical analysis model allows you to check existing technical drivers of Palo Alto, as well as the relationship between them. Please check Palo Alto Networks standard deviation, value at risk, as well as the relationship between the Value At Risk and kurtosis to decide if Palo Alto Networks is priced some-what accurately, providing market reflects its current price of 384.37 per share. Given that Palo Alto has jensen alpha of 0.0611, we recommend you to check out Palo Alto Networks's recent market performance to make sure the company can sustain itself at a future point.Palo Alto's insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Palo Alto insiders, such as employees or executives, is commonly permitted as long as it does not rely on Palo Alto's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Palo Alto insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Nikesh Arora over three months ago Acquisition by Nikesh Arora of 21279 shares of Palo Alto subject to Rule 16b-3 | ||
Nir Zuk over a year ago Sale by Nir Zuk of 5300 shares of Palo Alto | ||
Nir Zuk over a year ago Acquisition by Nir Zuk of 24669 shares of Palo Alto subject to Rule 16b-3 | ||
Nir Zuk over a year ago Sale by Nir Zuk of 5100 shares of Palo Alto | ||
Nir Zuk over a year ago Sale by Nir Zuk of 11769 shares of Palo Alto | ||
Nir Zuk over a year ago Sale by Nir Zuk of 720 shares of Palo Alto |
Palo Alto's Outstanding Corporate Bonds
Palo Alto issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Palo Alto Networks uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Palo bonds can be classified according to their maturity, which is the date when Palo Alto Networks has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
Understand Palo Alto's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Palo Alto's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.0983 | |||
| Market Risk Adjusted Performance | 0.1807 | |||
| Mean Deviation | 1.35 | |||
| Semi Deviation | 1.75 | |||
| Downside Deviation | 1.95 | |||
| Coefficient Of Variation | 826.34 | |||
| Standard Deviation | 1.79 | |||
| Variance | 3.22 | |||
| Information Ratio | 0.0484 | |||
| Jensen Alpha | 0.0611 | |||
| Total Risk Alpha | (0.08) | |||
| Sortino Ratio | 0.0444 | |||
| Treynor Ratio | 0.1707 | |||
| Maximum Drawdown | 9.85 | |||
| Value At Risk | (2.51) | |||
| Potential Upside | 2.45 | |||
| Downside Variance | 3.82 | |||
| Semi Variance | 3.07 | |||
| Expected Short fall | (1.35) | |||
| Skewness | (0.14) | |||
| Kurtosis | 1.16 |
| Risk Adjusted Performance | 0.0983 | |||
| Market Risk Adjusted Performance | 0.1807 | |||
| Mean Deviation | 1.35 | |||
| Semi Deviation | 1.75 | |||
| Downside Deviation | 1.95 | |||
| Coefficient Of Variation | 826.34 | |||
| Standard Deviation | 1.79 | |||
| Variance | 3.22 | |||
| Information Ratio | 0.0484 | |||
| Jensen Alpha | 0.0611 | |||
| Total Risk Alpha | (0.08) | |||
| Sortino Ratio | 0.0444 | |||
| Treynor Ratio | 0.1707 | |||
| Maximum Drawdown | 9.85 | |||
| Value At Risk | (2.51) | |||
| Potential Upside | 2.45 | |||
| Downside Variance | 3.82 | |||
| Semi Variance | 3.07 | |||
| Expected Short fall | (1.35) | |||
| Skewness | (0.14) | |||
| Kurtosis | 1.16 |
Consider Palo Alto's intraday indicators
Palo Alto intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Palo Alto stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
| Accumulation Distribution | 0.0323 | |||
| Daily Balance Of Power | (0.94) | |||
| Rate Of Daily Change | 0.97 | |||
| Day Median Price | 390.8 | |||
| Day Typical Price | 388.65 | |||
| Market Facilitation Index | 12.85 | |||
| Price Action Indicator | (12.44) | |||
| Period Momentum Indicator | (12.03) | |||
| Relative Strength Index | 73.72 |
Palo Alto Corporate Filings
F4 | 26th of November 2024 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
10Q | 21st of November 2024 Quarterly performance report mandated by Securities and Exchange Commission (SEC), to be filed by publicly traded corporations | ViewVerify |
8K | 20th of November 2024 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
| 8th of November 2024 Other Reports | ViewVerify |
Palo Stock media impact
Far too much social signal, news, headlines, and media speculation about Palo Alto that are available to investors today. That information is available publicly through Palo media outlets and privately through word of mouth or via Palo internal channels. However, regardless of the origin, that massive amount of Palo data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Palo Alto news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Palo Alto relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Palo Alto's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Palo Alto alpha.
Palo Alto Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Palo Alto can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Palo Alto Networks Historical Investor Sentiment
Investor biases related to Palo Alto's public news can be used to forecast risks associated with an investment in Palo. The trend in average sentiment can be used to explain how an investor holding Palo can time the market purely based on public headlines and social activities around Palo Alto Networks. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Palo Alto's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Palo Alto and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Palo Alto news discussions. The higher the estimate score, the more favorable the investor's outlook on Palo Alto.
Palo Alto Corporate Directors
| Lorraine Twohill | Independent Director | Profile | |
| John Key | Independent Director | Profile | |
| Asheem Chandna | Independent Director | Profile | |
| James Goetz | Independent Director | Profile |
Additional Tools for Palo Stock Analysis
When running Palo Alto's price analysis, check to measure Palo Alto's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Palo Alto is operating at the current time. Most of Palo Alto's value examination focuses on studying past and present price action to predict the probability of Palo Alto's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Palo Alto's price. Additionally, you may evaluate how the addition of Palo Alto to your portfolios can decrease your overall portfolio volatility.