Tag: trends

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.

Are these two indicators telling the same bullish story ?

I would describe myself as a value investor but can recognise some technical patterns or money outflow whenever I see some.

It would appear that the S&P500 is breaking out as shown on this graph:

Equally, it would seem that a significant outflow of money has been recorded from volatility investments which had dominated the market stories in the past weeks:

Some would see these two observations as a bullish indicator. While I keep this information in the back of my head, I remain a stock picker rather than just an investor who follows the herd.