Tag: growth stock

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.

Featured stock of the week: Applied Materials

Despite the recent drop following Q1 2018 #earnings, Applied Materials, $AMAT, still looks like an attractive investment idea.

The reported earnings show very good growth in both the top and the bottom line, however the analysts were put off by the guidance provided during the conference call.

From a valuation point of view, the stock still looks cheap with a PEG ratio (5 years expected) well below unity as you can appreciate from Yahoo Finance.

Now that the stock is trading below the 200 days moving area it may be a good idea to see whether and how this sudden drop is temporary or the start of a downtrend prior to initiating any position or accumulating.