Featured stock of the week: Palo Alto Networks

Palo Alto Networks (ticker: $PANW) is a Santa Clara, California based provider of security platforms.

The stock has had a fantastic run over the last months, with a 78+% capital appreciation yoy, take a look at this chart. It has outperformed some of the ETFs that reproduce a basket of cyber-security stocks, including $ISPY.L

$FEYE, $FTNT and $CYBR are amongst its competitors and all have a lower market cap than Palo Alto Networks.

$PANW is a growth stock with a superior projected revenue growth which the analysts currently estimate at 28% per year over the next 5 years.

The PEG ratio is still reasonable at 1.85.

Palo Alto Networks is certainly a stock which has rewarded its investors over the past months and is poised to be one of the leading stocks in a time where cyber security is high on the agenda of institutions and private entities.

Whether it will continue to generate wealth to its investors will depend on its ability to transition towards a positive net margin, preferably earlier than in 2020 when this is currently expected by analysts.


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s